JM Financial PAT ₹369 Cr down 20% YoY on prior-year write-back base; ~22% underlying

JM Financial reported consolidated PAT of ₹368.57 Cr for Q1 FY27, down 19.7% from ₹458.77 Cr a year ago but sharply higher sequentially (₹161.92 Cr in Q4 FY26). The headline YoY drop is almost entirely a base effect: Q1 FY26 carried a ~₹204.45 Cr impairment WRITE-BACK on financial instruments (a negative charge that inflated that quarter's profit 166% YoY), whereas this quarter books a normal ₹13.57 Cr impairment charge. Adjusting both sides for that one-off, underlying group profit grew roughly +22% YoY. Revenue from operations rose 8.0% YoY and 26.5% QoQ to ₹1,200.53 Cr; reported net margin of ~30.7% is down from ~40.9% a year ago (the write-back-flattered base) but well up from 16.7% last quarter. The sequential recovery was driven by Private Markets, where segment revenue jumped to ₹596.21 Cr (from ₹293.93 Cr QoQ) and segment result rebounded to ₹370.34 Cr (from ₹117.52 Cr) — back to roughly the ₹377.37 Cr it earned a year ago. Because much of that profit sits in a part-owned credit subsidiary, non-controlling interest ballooned to ₹76.65 Cr (from ₹4.96 Cr), so profit attributable to owners was only ₹291.92 Cr and basic EPS came in at ₹3.05 (vs ₹4.75 YoY) — the owners' line fell ~36% YoY, a wider gap than the group number and one readers will see reflected in EPS. The mix contradicts management's prior-call framing in one respect and confirms it in another. Corporate Advisory & Capital Markets — described on the Feb concall as 'exceptionally strong' with a robust deal pipeline — was the soft spot: segment revenue fell to ₹138.20 Cr (from ₹215.49 Cr YoY) and result to ₹37.34 Cr (from ₹96.13 Cr). Conversely, Wealth & Asset Management result eased to ₹17.29 Cr (from ₹43.82 Cr), consistent with guidance that continued investment through CY2026 would temper near-term profitability. Affordable Home Loans result was steady at ₹22.74 Cr. No formal quarterly guidance or Street consensus is on record for this print, and no company press release was issued alongside the numbers. On corporate actions, Chirag Negandhi resigned as a senior management person (Jul 23) and the board had earlier recommended a ₹1.75 final dividend, with the 41st AGM held today. Standalone results (holding company) collapsed to ₹2.50 Cr PAT from ₹133.45 Cr, driven by the absence of the ₹135.93 Cr fair-value gain booked a year ago — not indicative of operating trend and secondary to the consolidated picture.