JM Financial Ltd., a well-known financial services company, shared its financial results for the last quarter of the financial year (January to March 2025). The company went through a tough market and reported a fall in both profit and revenue. Still, it announced a dividend which shows that it remains committed to giving value to its shareholders and believes in future growth.
Financial Performance
- Net Profit: The company made a net profit of ₹149.7 crore during the January-March 2025 period. This is 20.2% lower than ₹187.6 crore profit made during the same time last year. Compared to the previous quarter (October-December 2024), profit also dropped by 28.3% from ₹208.92 crore. The main reason for this fall was a drop in fee income.
- Revenue: The total income was ₹821.99 crore in this quarter, which is 15.8% less than ₹975.7 crore in the same quarter last year. Compared to the previous quarter, income fell by 26.7% from ₹1,120.54 crore. The company’s investment banking and bad loan recovery business faced challenges, which eventually affected income.
- Annual Performance: For the full financial year (FY25), JM Financial made a profit of ₹672.2 crore, which is 11.8% lower than the last year. Its total income for the year was ₹4,168.5 crore, a decline of 12.8% compared to the previous year.
- Expenses: On a positive note, the company managed to reduce its operating expenses by 10.3% compared to last year. This shows that it controlled its costs well during a time when income was falling.
Dividend Announcement
The board of directors recommended a final dividend of ₹1.50 per share (150%) for FY25. This will be given if shareholders approve it. Earlier, in May 2024, the company had given a dividend of ₹2 per share. Based on the share price on April 17, 2025, the dividend gives a 1.99% return (called dividend yield). This shows that JM Financial is focusing on giving returns to its investors.
Operational Highlights
JM Financial’s investment banking division handled 46 deals related to equity markets (like IPOs) during the year 2023. It was ranked number 1 in India for IPO deals.
Its home loan (mortgage lending) business expanded and now has 112 branches. The company continued to grow steadily in retail mortgages.
Its business of giving loans to other financial institutions increased by 87% compared to last year, reaching ₹1,884 crore by December 2024.
The company’s asset reconstruction business (which manages and recovers bad loans) grew by 36% year-on-year, reaching ₹15,059 crore in assets under management (AUM). Its mutual fund business also achieved some important milestones. JM Financial also invested in digital tools and platforms, which helped its wealth management and securities business (called Platform AWS) grow stronger.
Market Dynamics
On April 17, 2025, JM Financial’s stock closed at ₹100.38 on the NSE (National Stock Exchange), showing a small rise of 0.69%. Its total market value (market capitalization) was ₹9,593.98 crore.
In the last one month, the stock price has gone up by 14.24%. But in the past three months, it has gone down by 14.40%. The stock has traded between ₹69.00 and ₹168.75 over the last 52 weeks. The company has a Price-to-Earnings (P/E) ratio of 25.04 and a Price-to-Book (P/B) ratio of 0.87. These numbers suggest the stock has a competitive or reasonable valuation compared to similar companies.
Future Outlook
- Investment Banking Recovery: The company expects better performance in investment banking in the future. This is because more IPOs and mergers are expected as the Indian economy grows. This should help increase earnings in this segment in FY26.
- Mortgage Lending Growth: The retail mortgage (home loan) business, which has 112 branches now, is expected to grow by 20-25% every year. This is due to the increasing demand for home loans across India.
- Financial Institutions Financing: The business of lending to NBFCs (Non-Banking Financial Companies) grew 87% in the past year. It is expected to keep growing because NBFCs are also becoming financially stronger.
- Digital Transformation: JM Financial is investing in artificial intelligence (AI) and other digital technologies. These efforts will make the Platform AWS business stronger and help serve high-net-worth individuals better.
- Risks: There are some risks too. These include delays in recovering money from bad loans, changes in government rules, and rising competition from new-age fintech companies.
Conclusion
JM Financial’s results for the last quarter of FY25 show that the company is facing some difficulties. Both profit and revenue dropped because of market ups and downs and slower recoveries in the bad loan business. But the company still announced a dividend, showing its strength and focus on investor trust.
Its strong performance in investment banking, growing home loan business, and digital upgrades are signs of long-term potential. JM Financial is aiming to benefit from the overall growth of India’s financial sector and could offer good returns to investors in the future.
