JM Financial , a leading integrated financial services group, has reported exceptional performance for the first quarter, with significant growth in both revenue and profitability.

Financial Highlights

• Highest ever quarterly operating profit after tax of Rs 454.00 crore, representing a 166% year-on-year increase.
• Net revenue grew 22% YoY to Rs 779.00 crore.
• Pre-provisioning operating profit increased 22% YoY to Rs 389.00 crore.
• Net worth crossed Rs 10,000.00 crore with book value per share at Rs 106.40.
• The real estate loan book declined 56% YoY to Rs 2,063.00 crore.
• Borrowings reduced by Rs 4,300.00 crore over the last year.

Segment Performance

JM Financial's performance across its business segments was robust:

• Achieved #1 position in Equity Capital Markets with 10 marquee transactions.
• Wealth management Assets Under Management (AUM) grew 7% YoY to Rs 1,14,228.00 crore.
• Mutual fund AUM increased 49% YoY to Rs 13,901.00 crore.

Strategic Developments

• JM Financial increased its shareholding in JM Financial Credit Solutions to 100%, making it a wholly-owned subsidiary.
• Bajaj Allianz Life Insurance acquired a 2.1% stake in JM Financial Home Loans for Rs 65.50 crore, valuing the business at Rs 3,120.00 crore.

Outlook

JM Financial's record-breaking quarterly results and strategic moves demonstrate its ability to capitalize on market opportunities and drive growth across its diverse business portfolio. The company's focus on strengthening its core businesses while expanding into new areas positions it well for continued success.

The significant increase in operating profit, coupled with growth in key areas such as wealth management and mutual funds, suggests a positive outlook for JM Financial. However, the company will need to navigate ongoing market challenges and regulatory environments to maintain this growth trajectory.

Note: All figures are based on the consolidated financial results for the quarter as reported by JM Financial Limited.

JM Financial Credit Solutions Limited (JMFCSL), a wholly-owned subsidiary of JM Financial Limited, has entered into an investment agreement to sell a portion of its stake in JM Financial Home Loans Limited (JMFHLL) to Bajaj Allianz Life Insurance Company Limited. The deal, valued at Rs. 65.50 crore, involves the sale of 1,36,46,000 equity shares, representing approximately 2.10% of JMFHLL's total issued equity share capital.

Transaction Details

Impact on Shareholding

Following the completion of this transaction:

• JMFCSL's shareholding in JMFHLL will decrease from 8.98% to 6.88%
• JM Financial Limited's effective shareholding in JMFHLL will reduce from 98.76% to 96.66%

Timeline

Financial Context

For the financial year ended March 31, 2025, JM Financial Home Loans Limited made significant contributions to JM Financial Limited's consolidated financials:

• Income Contribution: 8.27% of consolidated income
• Net Worth Contribution: 8.24% of consolidated net worth

About the Buyer

Bajaj Allianz Life Insurance Company Limited, the buyer in this transaction, is one of India's leading private life insurers. It is a joint venture between Bajaj Finserv Limited and Allianz SE. The company is not related to the promoter/promoter group or any group companies of JM Financial Limited.

Regulatory Compliance

The transaction has been disclosed in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. JM Financial Limited has confirmed that this transaction does not fall under related party transactions.

This strategic move by JM Financial Credit Solutions Limited to divest a small portion of its stake in the home loans unit comes as part of the company's ongoing efforts to optimize its portfolio and create value for shareholders. The involvement of a prominent player like Bajaj Allianz Life Insurance Company Limited as the buyer may bring additional strategic benefits to JM Financial Home Loans Limited.