Jio Financial Services reported a 51% fall in September-quarter profit despite a sharp rise in revenue and net interest income, sending its shares down as investors weighed growth against mounting costs.
Jio Financial Services slipped in early trading on Friday after the non-bank lender reported a sharp drop in quarterly profit, even as revenue and lending-related income continued to rise. The stock fell about 2.5% after the company said consolidated profit after tax declined 51% year on year to ₹340 crore in the September quarter, compared with ₹695 crore a year earlier, while revenue from operations increased 73% to ₹1,699.3 crore, according to company figures reported by Financial Express and other market outlets.
The profit decline came despite a much stronger operating top line. Net interest income rose 165% from a year earlier to ₹680 crore, reflecting a larger loan book and improved lending momentum, while other income fell 28% to ₹440 crore. The company also said the quarter was affected by higher expenses and the absence of dividend income, both of which weighed on bottom-line performance, according to Financial Express and Economic Times.
Motilal Oswal Financial Services said Jio Financial’s execution remained healthy and broad-based, pointing to disciplined growth at Jio Credit, faster expansion in asset management through the BlackRock joint ventures and continued progress in payments. Even so, the brokerage trimmed its FY27 earnings estimate by about 6.6% to reflect higher provisions, while lifting its FY28 forecast on the back of stronger net interest income. It maintained a buy rating and a target price of ₹300, saying the shares trade at 0.9 times estimated FY27 book value.
The lending business remained the clearest bright spot. Market reports said gross assets under management at Jio Credit reached ₹37,320 crore in the quarter, underscoring the scale of growth in a unit that has become central to the company’s expansion strategy. That rapid build-out helps explain why investors are watching the stock closely: Jio Financial is still showing strong balance-sheet and revenue momentum, but the latest results also suggest that profitability may remain uneven as the group continues to invest for growth.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
