JMJ Fintech Reports No Deviation in Rights Issue Fund Utilization for Q2 2025

JMJ Fintech Limited (CIN: L51102TZ1982PLC029253) has confirmed that there has been no deviation or variation in the use of proceeds from its rights issue for the quarter ended September 30, 2025. The company, which operates as a Non-Banking Financial Company (NBFC), raised Rs. 8.06 crore through a rights issue of 2.56 crore partly paid-up equity shares.

Rights Issue Details

The rights issue, which took place on August 21, 2025, was priced at Rs. 3.15 per share, with Rs. 3 payable on application and Rs. 0.15 as share premium. The total amount to be raised under the rights issue is set at Rs. 26.88 crore, with the company having received 30% of the total allocation amount on application. The remaining amounts are payable on future calls, as determined by the board.

Fund Allocation

The funds raised have been allocated as follows:

Purpose	Allocated Amount (Rs. in crore)	Utilized Amount (Rs. in lakh)
Augmenting capital base for NBFC activities	19.00	Not specified
General corporate purposes	6.72	13.41
Issue-related expenses	1.16	46.09

Audit Committee Review

The audit committee has reviewed and confirmed that there has been no deviation in the utilization of funds raised through the rights issue. This adherence to the stated objectives provides transparency and reassurance to investors regarding the company's financial management.

Financial Position

As of September 30, 2025, JMJ Fintech's financial position shows:

Particulars	Amount (Rs. in lakh)
Total Assets	6,659.91
Total Equity	3,487.93
Cash and Cash Equivalents	1,321.33

The company's equity share capital stands at Rs. 2,048 lakh, with other equity at Rs. 1,439.93 lakh.

Operational Performance

For the quarter ending September 30, 2025, JMJ Fintech reported:

Particular	Amount (Rs. in lakh)
Total Revenue	631.22
Net Profit	297.08
Net Profit Margin	47.06%

This represents a significant improvement in profitability compared to the previous quarter, with net profit margin increasing from 22.56% to 47.06%.

The company's adherence to regulatory requirements and transparent reporting practices, as evidenced by the timely disclosure of fund utilization and financial results, may contribute to building investor confidence. However, potential investors and stakeholders should continue to monitor the company's performance and future rights issue calls for a comprehensive understanding of JMJ Fintech's financial health and growth prospects.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+5.24%	+6.46%	+5.10%	+20.83%	-0.25%	+1,162.90%

JMJ Fintech Limited has reported a robust financial performance for the quarter and half-year ended September 30, 2025, marking significant growth in profitability and revenue. The company's unaudited financial results reveal a substantial increase in net profit and a notable expansion in its cash reserves.

Financial Highlights

The fintech company's financial results showcase impressive growth:

Particular	Q2 2025-26 (in crore)	Previous Period (in crore)	Growth (%)
Net Profit	2.97	1.14	159.52
Revenue	6.31	5.07	24.40

JMJ Fintech's net profit surged by 159.52% to Rs 2.97 crore, up from Rs 1.14 crore in the previous period. The company's revenue also saw a healthy increase of 24.40%, reaching Rs 6.31 crore compared to Rs 5.07 crore earlier.

Strengthened Financial Position

The company's financial position has significantly improved:

Cash and Cash Equivalents: Increased to Rs 13.21 crore from Rs 1.92 crore as of March 31, 2025, indicating a substantial improvement in liquidity.
Loan and Advances Portfolio: Remained stable at Rs 42.26 crore, suggesting consistent lending operations.

Operational Efficiency

The internal audit report highlights improved operational efficiency:

Collection Effectiveness: The company witnessed a drastic fall in due amounts during the reporting period, indicating enhanced collection strategies.
Due Customers: The number of due customers decreased from 6,040 in Q1 2025-26 to 4,139 in Q2 2025-26.
Total Due Amount: Reduced from Rs 5.33 crore to Rs 3.24 crore, showcasing improved recovery processes.

Strategic Initiatives

JMJ Fintech is poised for future growth with key strategic decisions:

Digital Transformation: The Board has authorized the Managing Director to finalize the acquisition of digital products and introduce digital services.
Profitability Ratio: The net profit percentage improved significantly from 22.56% in Q1 2025-26 to 47.06% in Q2 2025-26.

Compliance and Governance

The company maintains strong compliance and governance practices:

Independent Auditor's Review: Mahesh C. Solanki & Co., Chartered Accountants, conducted a review of the financial results, finding no material misstatements.
Regulatory Compliance: The financial results comply with Indian Accounting Standard 34 and SEBI regulations.

JMJ Fintech's impressive Q2 results, coupled with its focus on digital transformation and improved operational efficiency, position the company for continued growth in the fintech sector. The significant increase in cash reserves and profitability ratios suggests a strengthening financial foundation, which may support the company's expansion plans and digital initiatives in the coming quarters.