Jio Financial profit halves as surging costs overshadow lending growth

Jio Financial Services reported a 51% annual decline in second-quarter profit as operating expenses, finance costs and provisions rose sharply, despite strong growth in revenue, lending and assets under management.

Jio Financial Services said its earnings came under pressure in the quarter ended September 2026 as operating costs and provisions climbed sharply, even though revenue and lending activity continued to expand. Consolidated profit after tax fell 51% from a year earlier to ₹340.44 crore, while revenue from operations rose 73% to ₹1,699.28 crore, according to figures reported by ET Now and Angel One.

The squeeze on profitability was driven by a steep jump in expenses. Operating expenses increased 91% to ₹5.5 billion, and credit costs rose to ₹408 million from ₹246 million sequentially. Angel One also reported that finance costs surged to ₹577.73 crore from ₹135.82 crore a year earlier, underscoring how funding costs weighed on the bottom line even as core income improved.

Jio Credit remained the main growth engine. Its assets under management rose 22% from the previous quarter to ₹373 billion, while disbursements climbed 98% year on year to ₹131 billion. Investing.com and stock-analysis transcripts said the lending arm’s portfolio remained diversified, with mortgages, corporate and small business loans, and retail loans against securities all contributing to the book.

The company’s newer businesses showed a mixed performance. JioBlackRock AMC lifted assets under management to ₹227 billion, but Jio Payment Solutions saw transaction volumes fall 24% sequentially, even as processing margins improved. Motilal Oswal cut its FY27 earnings estimate by 6.6%, but kept a BUY rating and a target price of ₹300, saying it still expects consolidated profit to grow strongly over FY26-FY28.