ICRA has reaffirmed the credit ratings for JM Financial Limited’s non-convertible debenture program and fund-based/non-fund-based bank lines at [ICRA]AA (Stable). Additionally, the rating for the commercial paper program remains at [ICRA]A1+, although the rated amount has been reduced from ₹300 crore to ₹100 crore following a company request. The reaffirmation reflects JM Financial’s established market position and capital strength.
Credit Ratings Reaffirmed
ICRA has reaffirmed the [ICRA]AA (Stable) rating for JM Financial Limited’s non-convertible debenture program, which has a value of ₹100 crore. The [ICRA]AA (Stable) rating was also reaffirmed for the company’s fund-based and non-fund-based bank lines, also valued at ₹100 crore. This rating indicates a stable outlook for the company’s ability to manage its financial obligations.
Commercial Paper Program Adjustment
While the [ICRA]A1+ rating has been reaffirmed for JM Financial Limited’s commercial paper program, the overall rated amount has been reduced. Initially rated for ₹300 crore, the program has been adjusted to ₹100 crore, indicating a decrease in the company’s short-term borrowing plans using this instrument. This adjustment comes at the request of JM Financial.
Rationale for Ratings
The ratings consider JM Financial Group’s established position in the domestic capital and financial services market. This is supported by comfortable capitalization, adequate liquidity, healthy fee income, and the common promoters, senior management, financial and operational linkages within the consolidated group. The loan book has also decreased from ₹10,814 crore as of March 31, 2024, to ₹4,616 crore as of September 30, 2025.
Strategic Business Pivot
JM Financial is pivoting its business model, enhancing its focus on wealth and asset management, corporate advisory and capital markets, private markets and affordable home loans businesses. This transition is expected to result in a more asset-light approach, particularly within the private markets segment. The company’s ability to successfully scale up the syndication and alternatives business segments will be key to future growth.
Key Financial Metrics
The company’s capitalization remains comfortable, with a net worth of ₹10,860 crore and a gearing of 1.1 times as of September 30, 2025. The company reported a consolidated profit after tax of ₹721 crore in H1 FY2026. As the wholesale credit book is being reduced, the company’s treasury activities are expected to contribute more to profit.
Source: BSE
