| JM Financial Limited | ||||
| Ratings reaffirmed at 'Crisil AA / Stable / Crisil A1+ ' | ||||
| Rating Action | ||||
| ||||
| ||||
| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil AA/Stable/Crisil A1+’ ratings on the long term bank facility and commercial paper of JM Financial Limited (JMFL).
Crisil Ratings has also withdrawn its rating on Rs 200 crore commercial paper as per the clients request since the outstanding against the same is nil and the same is in line with Crisil Rating’s withdrawal policy.
The ratings continue to reflect JM Financial group's established market position across capital market businesses and diversified business model, continued healthy capitalisation metrics, and improving earnings profile supported by diversified revenue streams. The ratings also factor in susceptibility to uncertainties inherent in capital-market-related businesses, including regulatory changes and vulnerability of asset quality to slippages in the wholesale lending book.
JM Financial group is present across various capital markets businesses as well as lending activities, both wholesale and retail. The group operates in 4 identified core business verticals namely, corporate advisory and capital markets, wealth and asset management, private markets and affordable home loans.
The current strategy includes increased focus on scaling the high return on equity, fee and commission-based businesses which include investment banking, institutional equities, retail/ high net worth investors facing businesses of asset management, mutual fund, wealth management, broking, and investment advisory businesses. On the retail lending side, the focus on growing affordable home loan portfolio continues. Further, on private markets business (including real estate lending, bespoke/corporate lending and distressed credit), the focus is towards asset-light debt syndication model and hence developing a strong fee-based revenue stream. The group is pivoting the wholesale mortgage credit business to alternative investment space. Though the group has demonstrated strong execution capabilities in the past, Crisil Ratings will continue to monitor the group’s ability to successfully scale up fee-based businesses including asset and wealth management and syndication in private markets space. |
Analytical Approach For arriving at its ratings, Crisil Ratings has combined the business and financial risk profiles of all companies within the JM Financial group. The combined approach is because of significant operational and financial integration among group companies, common senior management, and franchise. All the companies are collectively referred to as the JM Financial group.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Established market position across capital market businesses and diversified business model The group has developed a strong franchise in key operating segments such as corporate advisory and capital markets, wealth and asset management, private markets and affordable home loans. This is aided by the track record and reputation of its experienced management and healthy client relationship. The group has a strong network of borrowers with whom they have long relationship. Over the years the group has also strengthened its risk department. Further, the group has gradually scaled up retail mortgage lending with a focus on the affordable segment.
Investment banking continues to be the flagship business of the group, with over five decades of experience in the segment. This has resulted in JM Financial group establishing a strong franchise and a network of loyal clientele, making it one of the leaders in this domain. The group has market leadership in equity capital markets and mergers & acquisition and has strong presence across other verticals like private equity and advisory business.
Over years, the group has also expanded in other capital markets related businesses and now has established presence in broking/securities both institutional and retail; and wealth management (Assets Under Management (AUM) of Rs 1.16 lakh crore as on December 31, 2025). The group remains focused on scaling its fee-based businesses by catering to a wider set of customers through a diversified product basket. It is also focusing on building stronger presence in asset management segment, with focus towards alternate asset management and mutual fund business. In furtherance of the same, the group has invested substantially in expanding human, physical and digital infrastructure and further strengthening its product offerings.
On the lending front, the group had a loan book of Rs 7,026 crores as on December 31, 2025 as against Rs 8,195 crore as on March 31, 2025. The focus of the group has shifted from on balance sheet lending to a syndication approach for the wholesale business (real estate, distressed credit and bespoke lending). The MSME and financial institutions funding loans are expected to run down in the next 6-12 months. For the affordable home loans business, the focus continues towards building the book.
Crisil Ratings will continue to monitor the ability of the group to further scale up and strengthen its fee-based businesses.
Healthy capitalisation Capitalisation metrics for JM Financial group remains healthy with networth (including minority interest and net of goodwill on consolidation) of around Rs 11,065 crores as on December 31, 2025 (Rs 10,178 crores as on March 31, 2025) with overall CAR at 30.6% (36.9% as on March 31, 2025). The capitalisation metrics have also been supported by steady accruals and capital raises, as and when required. Gearing remained comfortable at 1.0 times as on December 31, 2025 (1.1 times as on March 31, 2025). The group’s healthy capitalisation also provides adequate cushion against the asset-side risks as reflected in healthy provision coverage ratio (PCR) of 78.3% as on December 31, 2025.
Improving earnings profile, supported by diversified revenue streams The group benefits from presence across diversified business streams along with the increased focus towards scaling of the fee-based businesses. The corporate advisory and capital markets, asset and wealth management, private markets and affordable home loans and treasury and other businesses constituted around 24%, 33%, 32%, 10% and 1% respectively of total revenue during 9M FY26. PAT contribution from these segments constituted 32%, 7%, 48%, 5% and 8% respectively, during the period.
For 9M FY 2026, the group reported a total revenue of Rs 3,291 crores and a profit after tax (PAT; before NCI and after share of profit of associates) of Rs 1,039 crores as against Rs 4,453 crore and Rs 774 crore respectively for fiscal 2025. The return on assets (RoA) and return on equity (RoE; annualised) for the group improved to 5.7% and 13.0% for 9M FY 26 from 2.9% and 7.3% respectively for fiscal 2025. The average 5-year RoA stood at 2.6% and RoE stood at 6.6% till fiscal 2025. The improvement in earnings in 9M FY 26 was also driven by write-backs of provisioning done in earlier years given higher delinquencies faced in wholesale financing book and strong recoveries on account of resolution of NPAs.
The PAT after NCI and after the share of profit of associates stood at Rs. 1,037 crore for nine months of fiscal 2026 as against Rs. 821 crore for fiscal 2025.
The operating expenses for the group have been higher over last couple of years on account of investment in teams and technology for newer products. Overtime, the same should start giving benefit of economies of scale.
Overall, the ability of the group to start sweating out the investments done recently, increase the fee-based income as a proportion of total income will remain monitorable. |
Key Rating Drivers - Weaknesses Susceptibility to uncertainties inherent in capital-market related businesses, including regulatory changes and increased competition With capital market linked businesses forming the major product suit for the group, it remains susceptible to vagaries of the market. Since corporate and investor sentiments drive investment banking related activities and portfolio flows in the wealth management business, business and earnings are susceptible to cyclicality and volatility in capital markets as well as various other political, social and macroeconomic factors. In addition, the capital markets linked business is privy to elevated market competition given the increased number of new entrants in various segments including asset and wealth management. The high competition poses challenges to healthy growth and earnings profile of the group especially during the downturns.
The group is also exposed to regulatory risk. Unlike lending operations, investment banking and wealth and asset management are largely fee-based businesses, and thus, any credit event has a relatively lower impact on them. However, these businesses operate in a highly regulated environment, and any unanticipated change can adversely impact the business model. For instance, in the last few years, regulations that prohibited upfront commissions, led to a sharp erosion in commission income. Similarly, in the broking business, with the objective of enhancing transparency and limiting the misuse of funds, the Securities and Exchange Board of India (SEBI) introduced a few regulations in the past 3-4 years. Some of these include upfront margin collection for intraday positions and limiting the use of power of attorney, with the most recent being a revised Equity Index Derivatives Framework.
The group has strong market presence in the investment banking segment along with presence in advisory services i.e. merger and acquisitions and private equity syndication. While the capital markets business remains susceptible to any change in market sentiment or regulatory change, the advisory practice and private markets business remain counter cyclical and provide some cushion to the earnings. Further, there is also increased focus on growing recurring wealth revenue. Having said this, the same will remain a monitorable going ahead.
Wholesale lending business remains vulnerable; albeit risk management processes are comfortable The overall loan book for the group stood at Rs 7,026 crore as on December 31, 2025 as against Rs 8,195 crore as on March 31, 2025 (Rs. 12,917 crore as on March 31, 2024). As on December 31, 2025, the private markets loan book stood at Rs 4,456 crore (63% of total outstanding loan book) and the loan book for home loans segment stood at Rs. 2,570 crore.
While the private markets book has declined from Rs 10,814 crore as on March 31, 2024 to Rs 4,456 crore as on December 31, 2025 given the defocus of the group from growth in the wholesale lending to shift to debt syndication model for the business segment, the group had earlier faced challenges in this segment with some large ticket slippages in the wholesale lending portfolio. As a result, as on March 31, 2025, the gross NPA and net NPA for the group increased to 11.7% and 2.3%, from 4.7% and 2.2% respectively as on March 31, 2024. However, as on December 31, 2025, the gross NPA and net NPA came down to 10.5% and 2.3% respectively with a loan book of Rs. 7,026 crore following recoveries of more than Rs 260 crore in 9M FY 2026. Given the chunkiness of exposures in the wholesale segment, the group remains vulnerable to any deterioration due to any further slippages.
The group maintains healthy capitalisation, which inherently provides cushion against asset-side risk. JM Financial group has also put in place adequate credit appraisal, strong risk management and processes, and strengthened them over last few years. Crisil Ratings will continue to monitor the ability of the group to restrict further slippages in the wholesale segment. |
Liquidity Strong Asset-liability mismatch (ALM) statements of the key lending entities of the group did not show negative cumulative mismatches in the up to 1-year buckets, as on December 31, 2025. At a group level, as on December 31, 2025, the company had cash and cash equivalents and liquid investments aggregating Rs 3,197 crore and unutilised CC/WCDL lines of Rs 162 crore. This provided 2.8 times cover for debt obligations coming up for next 3 months. The group also had unutilised term loan lines of Rs 285 crore as on same date. |
ESG Profile
There is growing importance of ESG among investors and lenders. JMFL group’s commitment to ESG will play a key role in enhancing stakeholder confidence, given presence of foreign investors. |
Outlook Stable Crisil Ratings believes the JM Financial group will maintain its healthy financial risk profile over the medium term, supported by strong capitalization and conservative gearing. |
Rating sensitivity factors Upward factors
Downward factors
|
About the Company JMFL is the holding company of the operating entities in the JM Financial Group, which is an integrated and diversified financial services group. JMFL on a standalone level is engaged in investment banking, portfolio management services and the management of private equity fund(s).
The JM Financial Group’s primary businesses include (i) Corporate Advisory and Capital Markets which caters to Institutional, Corporate, Promoters, Government and Ultra High Networth clients and includes investment banking, and institutional equities and research; (ii) Wealth and Asset Management includes wealth management business, broking, PMS, Equity & Debt AIFs, and mutual fund business; (iii) Private Markets comprises of Private Credit (Corporate, Bespoke, Real Estate and Distressed Credit) and Investments (Private equity funds, REITs etc.); and (iv) Affordable Home Loans includes the affordable housing finance business.
As of December 31, 2025, the wealth management AUM stood at Rs 1.16 Lakh crore, mutual fund QAAUM at Rs 14,344 crore, the consolidated loan AUM (including margin trade funding) at Rs 9,756 crore and distressed credit business AUM at Rs 12,721 crore.
The Group is headquartered in Mumbai and has a presence across 938 locations spread across 230 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE. |
Key Financial Indicators : JM Financial Limited (Consolidated)
NCI is non-controlling interest *annualized Note: the ratios have been calculated as per Crisil Ratings’ standard methodology |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
Annexure - Details of Rating Withdrawn
|
Annexure – List of Entities Consolidated
*Includes trusts where there is a controlling interest / significant influence |
| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||
|
Criteria Details
|