Judo Capital Holdings (ASX:JDO) said it now expects a fiscal 2026 profit before tax of AU$163 million to AU$169 million, according to a Thursday filing with the Australian bourse.

The company previously guided for a fiscal year 2026 profit before tax of AU$180 million to AU$190 million.

The cut comes as Judo now expects its fiscal year cost of risk to be in the range of AU$116 million to AU$122 million, reflecting an increase in certain provisions driven mainly by three exposures across different sectors that recently emerged due to "customer-specific developments."

The company anticipates its 90-day nonperforming and impaired loans to represent about 3% of gross loans as of June 30, while its net interest margin is now expected to exceed 3.2% for the fiscal second half, above previous guidance of around 3.15%.

Additionally, Judo Capital issued fiscal year 2027 guidance for profit before tax of between AU$210 million and AU$220 million.

The company's shares plunged 35% in recent Thursday trade.