JM Financial, a diversified financial services company with investment banking, wealth management and lending businesses, posted a mixed set of results for the second quarter of FY27, with core interest income rising sharply and investment banking profits surging multi-fold, even as consolidated net profit declined, according to a CNBC-TV18 report. Steady expansion in private market loans and wealth assets supported earnings, but the gains were not enough to lift overall net profit above year-ago levels.

The company's net interest income rose 32.6% year-on-year (YoY) to ₹179 crore in the quarter ended September 30, 2026, compared with ₹135 crore in the corresponding quarter of the previous year. Consolidated profit after tax (PAT), however, fell 11% YoY to ₹240 crore, down from ₹270 crore in Q2 FY26.

Consolidated net revenue stood at ₹712 crore for the quarter, marginally higher than the ₹708 crore reported in the year-ago period, indicating a largely flat performance. Earnings per share (EPS) declined 11% to ₹2.5 from ₹2.8 in the corresponding quarter of the previous financial year. Consolidated net worth increased 7% YoY to ₹10,993 crore, compared with ₹10,241 crore in Q2 FY26.

Alongside the results, the financial services company declared an interim dividend of ₹1.65 per share. An interim dividend is declared and paid during the financial year, before annual results are finalised. It said its total dividend payout over the last six quarters stood at ₹7.6 per share.

Investment banking delivers standout quarter

The corporate advisory and capital markets business reported one of its best quarters for investment banking, with segment profits growing fourfold sequentially to ₹127 crore.

JM Financial ranked first by deal value across initial public offerings (IPOs) and qualified institutional placements (QIPs) during the first half of FY27. The company closed 26 capital market transactions worth approximately ₹83,000 crore (₹830 billion) in Q2 FY27.

The company said its transaction pipeline remains strong, with 48 filed IPO transactions aggregating approximately ₹1.3 lakh crore (₹1.3 trillion), excluding the proposed IPO transaction of Jio Platforms. Filed IPOs are those whose draft offer documents have been submitted for regulatory review, and a filing does not guarantee that an offering will proceed to listing.

Lending and wealth businesses expand steadily

JM Financial's wealth management business reported a 16% YoY increase in recurring assets under management (AUM) to ₹37,038 crore. Its wealth loan book grew 30% YoY to ₹2,558 crore, while total recurring AUM, including loans, rose 17% YoY to ₹39,596 crore.

In the affordable home loans segment, the customer base increased 30% YoY to 37,548, while AUM rose 30% to ₹3,929 crore. Disbursements grew 48% YoY to ₹331 crore during the quarter.

The private markets business reported disbursements of ₹977 crore in Q2 FY27, nearly double the ₹485 crore recorded in the year-ago quarter. Standard loans in the segment grew 22% YoY to ₹4,748 crore.

The company also achieved the first close of its maiden pre-IPO fund, securing commitments of ₹700 crore. A first close is the point at which initial investor commitments are formally received, allowing a fund to begin operating ahead of its final close.

Management commentary

Commenting on the results, Vishal Kampani, Vice Chairman and Managing Director of JM Financial, said the company witnessed growth in its loan book across private markets, wealth management and affordable home loans. He added that the company expects the first close of its second performing credit fund within the current financial year, which runs to March 2027.

Share price movement

Shares of JM Financial closed at ₹114 on the National Stock Exchange (NSE), up ₹2.04, or 1.82%, from the previous close.

Source: CNBC-TV18