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%.

JMJ Fintech Limited has submitted its quarterly compliance certificate to the Bombay Stock Exchange, fulfilling regulatory obligations under SEBI's depositories and participants regulations. The BSE-listed non-banking financial company filed the mandatory confirmation certificate for the quarter ended March 31, 2026.

Regulatory Compliance Filing

The company submitted the certificate on April 6, 2026, as required under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. Company Secretary and Compliance Officer Vidya Damodaran signed the submission letter, which was digitally authenticated and forwarded to BSE's Department of Corporate Services.

Registrar Confirmation

Purva Sharegistry (India) Private Limited, serving as the company's registrar and share transfer agent, issued the confirmation certificate dated April 1, 2026. The SEBI-registered entity (Registration No. INR000001112) confirmed compliance with dematerialisation procedures and regulatory timelines during the reporting quarter.

Ms. Deepali Gaonkar, Compliance Officer at Purva Sharegistry, certified that all securities received from depository participants for dematerialisation were properly processed and confirmed to the depositories within prescribed timelines.

Dematerialisation Activity

The detailed report covering the period from January 1, 2026, to March 31, 2026, shows no dematerialisation activity during the quarter. The certificate confirms that no share certificates were converted from physical to electronic form during this period.

Company Information

JMJ Fintech Limited operates as a BSE-listed non-banking financial company with its registered office located in Coimbatore, Tamil Nadu. The company maintains its corporate identification number as L51102TZ1982PLC029253 and continues to fulfill its regulatory reporting obligations as a publicly listed entity.