JMJ Fintech Ltd Receives 'ACUITE BB' Rating on Bank Loan Facilities
JMJ Fintech Ltd, a BSE Listed Non-Banking Financial Company, has received a rating assignment from Acuité Ratings & Research Limited for its bank loan facilities. The rating details are associated with an instrument valued at 25 Cr.The rating assigned pertains to the Bank Loan Ratings, specifying a Long Term Credit Rating of Acuite BB, with a Stable Outlook. This rating was assigned on April 7, 2026.
The key financial rating details are presented below:
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
|---|---|---|---|
| Bank Loan Ratings | 25 | ACUITE BB | - |
| Total Outstanding | 25 | - | - |
| Total Withdrawn | 0 | - | - |
Acuité assigned the long-term rating of 'ACUITE BB' to the Rs. 25.00 Cr. proposed bank facilities of M Fintech Limited, maintaining a Stable outlook.
Financial Performance and Rating Drivers
The rating analysis by Acuité incorporated improvements in the financial performance of the company in FY25 compared to FY24, citing a strong scale-up in operations and enhanced profitability. Total income more than doubled, reaching Rs.15.56 crore in FY25 from Rs.6.62 crore in FY24. This growth was supported by higher disbursements and AUM expansion.Operating leverage improvements resulted in PPoP reaching Rs.7.87 crore in FY25, up from Rs.3.10 crore in FY24. Similarly, Profit After Tax (PAT) improved to Rs.5.17 crore in FY25, compared to Rs.2.14 crore in FY24. Return indicators also strengthened, with Return on Average Assets (RoAA) improving to 13.70% as on FY25 (FY24: 9.89%), and Return on Net Worth (RoONW) rising to 26.38% as on FY25 (FY24: 15.15%).
From a balance sheet perspective, the company maintained a Capital Adequacy Ratio (CAR) of 80.13% and a gearing level of 0.89x as on FY25, indicating comfortable capitalization and moderate leverage.
However, the rating rationale noted that the improvement was partially offset by asset quality deterioration. The Gross Non-Performing Assets (GNPA) increased to 5.04% in FY25 (FY24: 3.52%), and the Net Non-Performing Assets (NNPA) rose to 3.11% as on FY25 (FY24: 0.95%). Furthermore, the on-time portfolio declined to 87.95% in FY25, compared to 91.10% in FY24.
Key Financial Indicators Comparison
The following table summarizes key financial metrics for JMJ Fintech Limited:| Particulars | FY25 (actual) | FY24 (Actual) |
|---|---|---|
| Total Assets (Rs. cr.) | 5.04 | 7.44 |
| Total Income* (Rs. cr.) | 15.56 | 6.62 |
| PAT (Rs. cr.) | 5.17 | 2.14 |
| Net Worth (Rs. cr.) | 23.63 | 15.57 |
| Return on Average Assets (RoAA) | 13.70% | 9.89% |
| Return on Average Net Worth (RoONW) | 26.38% | 15.15% |
| Debt/Equity (Times) | 0.80 | 0.67 |
| Gross NPA (%) | 5.04 | 3.52 |
| Net NPA (%) | 3.11 | 0.95 |
Company Profile
JMJ Fintech Limited, incorporated on August 10, 2022, is an RBI registered Non-Banking Financial Company (NBFC) operating as a non-deposit taking institution. The company provides credit facilities to various borrowers, including Individuals, Micro, Small and Medium Enterprises (MSMEs), Corporate Clients, and High Net-worth Individuals (HNIs).The company's liquidity position is reported as adequate, supported by unencumbered Cash and Bank Balance of Rs.1.92 Cr. as on March 31, 2025.
Potential triggers for an upward rating action include significant growth in AUM and disbursements, alongside significant improvements in profitability metrics. Conversely, triggers for a downward rating action involve deterioration in asset quality metrics, collection efficiency, or GNPA exceeding 7 percent.
Stock Price Movement
At the close of trade on Wednesday, JMJ Fintech Ltd settled at ₹10.10, marking a gain of 4.12% for its shares. Throughout the session, the shares navigated a range, dipping as low as ₹9.79 but topping out at ₹10.24.Source:
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