JM Financial profit falls as costs and tax rate pressure margins
Revenue was flat year on year, but expenses rose 6.09% and the tax rate increased 10.49 percentage points sequentially.
Filed 04 Nov 2026, 17:26 IST · after market close · JM Financial Ltd (JMFINANCIL)
Key takeaways
- Consolidated net profit fell 13.07% year on year to Rs 227.66 cr as expenses grew 6.09% while revenue was nearly flat at +0.09%.
- Operating margin narrowed 2.48 percentage points year on year to 56.17%, with costs growing faster than revenue.
- The tax rate rose 10.49 percentage points sequentially to 29.55%, adding to the 38.23% quarter-on-quarter decline in net profit.
Price around the results
Profit contracted despite flat year-on-year revenue
JM Financial’s consolidated revenue was almost unchanged year on year at +0.09%, but net profit fell 13.07% as expenses increased 6.09%. Sequentially, revenue declined 14.02%, while net profit dropped 38.23%, with interest expense rising 4.82%. Other income contributed 7.45% of pre-tax profit, so it was a supporting item but not the main earnings driver.
Margin recovery from Q4FY26 lost momentum
Operating margin narrowed 2.48 percentage points year on year because expenses grew faster than revenue; sequentially, the margin fell 2.14 percentage points as revenue declined faster than expenses. The 56.17% margin remains 2.64 percentage points above the 53.53% median for 94 Financial Services peers that have reported the quarter. The trend shows a recovery from 51.77% in Q4FY26, followed by a decline from 58.31% in Q1FY27.
Management flags credit-fund and business expansion initiatives
Management said it expects the first close of its second performing credit fund before year end and is expanding into manufacturing products. The company told analysts it is focusing on co-investments in Private Markets. It also reported Affordable Home Loans AUM of Rs 3,929 crore, up 30% year on year, while mutual-fund average AUM fell to Rs 13,500 crore from Rs 14,902 crore in Q2FY26.
No immediate market reaction after the post-close filing
The results were filed after market close, so there was no reported market reaction yet. Across eight previous results, the stock rose five times and fell three times, with a median absolute move of 2.13%, providing the relevant historical context for the eventual response.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,032 cr | ₹1,201 cr | -14.02% | +0.09% |
| Other income | ₹24 cr | ₹24 cr | +0.42% | +20.54% |
| Expenses | ₹452 cr | ₹500 cr | -9.60% | +6.09% |
| Operating profit | ₹580 cr | ₹700 cr | -17.18% | -4.14% |
| Operating margin (%) | 56.17% | 58.31% | — | — |
| Interest | ₹258 cr | ₹247 cr | +4.82% | +1.66% |
| Depreciation | ₹22 cr | ₹22 cr | +0.82% | +15.89% |
| Profit before tax | ₹323 cr | ₹455 cr | -29.04% | -8.03% |
| Tax | ₹95 cr | ₹87 cr | +10.00% | +6.73% |
| Net profit | ₹228 cr | ₹369 cr | -38.23% | -13.07% |
| EPS (₹) | ₹2.50 | ₹3.05 | -18.03% | -11.35% |
Operating margin of 56.17% compares with a Financial Services sector median of 53.53% across 94 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Affordable Home Loans reported AUM of Rs. 3,929 crore, up 30% year on year.
Guidance & outlook
- The company expects the first close of its second performing credit fund before year end.
Expansion
- The company is expanding into manufacturing products.
New initiatives
- The company is focusing on co-investments in Private Markets.
Competition
- JM Financial ranked first by deal value in IPOs and QIPs for H1FY27.
Problems & risks
- Mutual Fund average AUM fell to Rs. 13,500 crore from Rs. 14,902 crore in Q2FY26.
What to watch
- Whether operating margin recovers from 56.17% after the 2.14-percentage-point sequential decline.
- Whether the tax rate moves below 29.55% after rising 10.49 percentage points sequentially.
- Whether mutual-fund average AUM improves from Rs 13,500 crore.