JM Financial Limited has received an ESG rating of 66, classified as "Strong," from ESG Risk Assessments and Insights Limited (ESG Risk.ai), a SEBI-registered ESG Rating Provider under Category I. The company disclosed this development to the stock exchanges on January 1, 2026, in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR).

ESG Rating Details

The ESG assessment was conducted based on data pertaining to FY 2024-25, with the company receiving the report on December 31, 2025. The rating evaluates the company's performance across Environmental, Social, and Governance parameters.

Independent Assessment

JM Financial Limited clarified that it had not engaged ESG Risk.ai for the ESG rating process. The rating provider independently assigned the ESG score based on information available in the public domain. This approach reflects the growing trend of unsolicited ESG assessments by rating agencies to provide market participants with sustainability insights.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Para A, Part A of Schedule III of the SEBI Listing Regulations and SEBI Master Circular dated November 11, 2024. Company Secretary and Compliance Officer Hemant Pandya signed the disclosure document, ensuring proper regulatory compliance.

Market Context

ESG ratings have become increasingly important for investors and stakeholders in evaluating companies' sustainability practices and long-term viability. The "Strong" rating of 66 indicates that JM Financial Limited demonstrates robust performance across environmental, social, and governance metrics based on publicly available information.

JM Financial Limited has received rating reaffirmation from ICRA Limited under Regulation 30 of SEBI LODR, with the rating agency maintaining its assessment while making adjustments to the commercial paper programme size.

Rating Action Summary

ICRA Limited has taken the following rating actions for JM Financial Limited's instruments:

The rating communication was published by ICRA on its website on December 31, 2025, with JM Financial making the disclosure on January 1, 2026.

Rating Rationale and Business Model Pivot

ICRA's ratings are supported by JM Financial Group's established track record and franchise in the domestic capital and financial services market, comfortable capitalisation, and adequate liquidity. The Group has over five decades of experience in investment banking and securities businesses and has progressively diversified its offerings across capital markets, distribution, asset management and allied services.

In FY2025, the management announced a strategic pivot in its business model to enhance focus on:

• Corporate advisory and capital markets
• Wealth and asset management
• Private markets with syndication and co-investment
• Affordable home loans businesses

Given the focus on syndication and co-investment, the business model is expected to be asset light in the private markets business.

Financial Performance and Capitalisation

The Group's financial metrics demonstrate the impact of its strategic transformation:

The indebtedness has eased amid the pivot in the business model with gearing declining to 1.10 times as on September 30, 2025 (net gearing of 0.80 times). The loan book reduced significantly to ₹4,616 crore as on September 30, 2025 from ₹10,814 crore as on March 31, 2024.

Revenue Diversification and Performance

As on September 30, 2025, the Group's revenue stream remained diversified across multiple segments:

JM Financial reported consolidated net profit of ₹721 crore in H1 FY2026 on total income of ₹2,166 crore, compared to consolidated net profit of ₹774 crore in FY2025 on total income of ₹4,453 crore.

Asset Quality and Risk Factors

While the Group reported improved financial metrics, ICRA noted certain challenges. The GNPA ratio stood at 10.90% as on September 30, 2025 compared to 8.70% as on September 30, 2024, though this appears optically elevated due to the contraction in the loan book. The net NPA ratio remained relatively stable at 2.60% as on September 30, 2025.

ICRA highlighted that the Group's exposure to capital market volatility and the inherent risk profile of key businesses remain partial offsets to its strengths. The rating agency noted that portfolio concentration towards large-ticket exposures can result in protracted resolution processes.

Liquidity Position

As on September 30, 2025, the Group maintained adequate liquidity with unencumbered on-balance sheet liquidity comprising cash and bank balance, Government securities, Treasury bills and liquid mutual funds aggregating ₹2,955 crore, equivalent to approximately 26% of borrowings. Historically, the Group has maintained high on-balance sheet liquidity equivalent to 25-30% of outstanding borrowings.