JMJ Fintech Limited has officially confirmed to the Bombay Stock Exchange that it does not meet the criteria for classification as a 'Large Corporate' under SEBI's debt securities fund raising regulations. The BSE-listed non-banking financial company made this declaration on April 10, 2026, to ensure compliance with regulatory requirements.

Regulatory Compliance Confirmation

The company's confirmation relates to SEBI Circular SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172 dated October 19, 2023, which addresses "Fund raising by issuance of Debt Securities by Large Entities." This circular superseded earlier SEBI regulations, including SEBI/HO/DDHS/CIR/P/2018/144 dated November 26, 2018, and SEBI/HO/DDHS/P/CIR/2021/613 dated August 10, 2021.

Company Details and Authorization

JMJ Fintech Limited operates as a non-banking financial company with its registered office located in Coimbatore, Tamil Nadu. The company holds CIN L51102TZ1982PLC029253 and trades on BSE under scrip code 538834.

The regulatory confirmation was signed by Vidya Damodaran, Company Secretary with membership number A69509, who digitally authenticated the document on April 10, 2026. The communication was addressed to the Department of Corporate Services at Bombay Stock Exchange Limited's Mumbai office.

Regulatory Framework Context

The SEBI circular in question establishes specific criteria for determining 'Large Corporate' status, which affects fund raising requirements through debt securities issuance. Companies falling under this classification face additional regulatory obligations and compliance requirements. By confirming its non-applicability status, JMJ Fintech Limited has clarified its regulatory position and ensured accurate record-keeping with the stock exchange authorities.

JMJ Fintech Limited has been assigned an ACUITE BB rating with stable outlook by Acuite Ratings & Research Limited on its proposed Rs 25.00 crore bank facilities. The rating assignment was communicated to BSE on April 08, 2026, in compliance with SEBI listing regulations.

Rating Details and Financial Performance

The long-term rating reflects JMJ Fintech's significant operational scale-up and enhanced profitability in FY25. The company demonstrated robust business traction with substantial growth across key financial metrics.

Profitability and Return Indicators

The company's return indicators strengthened significantly during FY25. Return on Average Assets (RoAA) improved to 13.70% from 9.89% in FY24, while Return on Average Net Worth (RoNW) rose to 26.38% from 15.15% in the previous year. The improved operating leverage contributed to better profitability margins across all key metrics.

Capital Adequacy and Leverage Position

JMJ Fintech maintains comfortable capitalization levels that provide adequate buffer for future growth and potential risks. The company's strong capital position supports its expansion plans while maintaining financial flexibility.

Asset Quality Concerns

Despite strong financial performance, the rating factors in deteriorating asset quality metrics. Gross NPA increased to 5.04% in FY25 from 3.52% in FY24, while Net NPA rose to 3.11% from 0.95% during the same period. The on-time portfolio declined to 87.95% in FY25 compared to 91.10% in FY24, indicating moderation in collection efficiency.

Company Background and Operations

JMJ Fintech Limited, incorporated on August 10, 2022, operates as a Reserve Bank of India registered Non-Banking Financial Company under Section 45-IA of the RBI Act, 1934. The company provides credit facilities to individuals, MSMEs, corporate clients, and HNIs, with lending decisions based on respective credit and risk profiles. The company is led by directors Mr. Johny Madathumpady Lonappan and Mr. Joju Madathumpady Johny.

Rating Outlook and Monitoring Factors

The stable outlook reflects Acuite's expectation that JMJ Fintech will maintain its growth momentum while managing asset quality challenges. Key monitoring factors include sustaining asset quality during operational scaling, maintaining collection efficiency above 87.95%, and keeping GNPA below 7%. Potential rating upgrades could result from significant AUM growth and improved profitability metrics, while downgrades may occur if asset quality deteriorates further or GNPA exceeds 7%.