JM Financial shares tank 8% as Q4 net profit declines 31% to Rs 162 crore

Shares of JM Financial tumbled 8% to their day’s low of Rs 120 on the BSE on Monday after it reported net revenue of Rs 584 crore in the fourth quarter of FY26, down 12.2% from Rs 665 crore in the corresponding quarter last year. Including a share of profit from associates of Rs 3 crore, PAT stood at Rs 162 crore, compared with Rs 235 crore in Q4 FY25, down 31.1 YoY.

Operating net profit declined 21.1% year-on-year to Rs 165 crore, while consolidated net profit also fell 21.1% to Rs 165 crore, the company said in its investor presentation.

Profit before tax (PBT) came in at Rs 243 crore during the quarter, down 21.9% from Rs 311 crore in Q4 FY25. Tax expense rose 9.6% year-on-year to Rs 84 crore. As a result, profit after tax (PAT) fell 32.2% to Rs 159 crore from Rs 235 crore in the year-ago period.

Employee costs declined 9.2% year-on-year to Rs 200 crore, while operating expenses increased 12.2% to Rs 143 crore. Pre-provisioning profit (PPoP) stood at Rs 241 crore, compared with Rs 318 crore a year ago, marking a decline of 24.1%.

For the full financial year FY26, net revenue stood at Rs 2,749 crore, down 2% from Rs 2,805 crore in FY25. Employee costs increased 9.4% to Rs 1,054 crore, while operating expenses rose 5.6% to Rs 443 crore. Pre-provisioning profit declined 11.9% year-on-year to Rs 1,252 crore from Rs 1,422 crore.

Profit before tax for FY26 rose 49.4% to Rs 1,489 crore from Rs 997 crore in the previous year. Tax expense increased 69.2% to Rs 380 crore. Profit after tax stood at Rs 1,109 crore, up 43.6% from Rs 772 crore in FY25.

Including a share in profit of associates of Rs 24 crore, PAT rose 46.4% to Rs 1,133 crore. Operating net profit increased 37.9% year-on-year to Rs 1,133 crore, while consolidated net profit rose 46.3% to Rs 1,202 crore for FY26.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)