Jio Financial Services stock weighs income growth against profit drop

Jio Financial Services reported strong operating expansion but a sharp decline in reported profit for the quarter ended September 30, 2026. On its earnings call on October 15, the company said consolidated total income excluding the prior-year dividend effect rose 132 percent year over year to 1,699 crore Indian rupees, while reported profit after tax stood at 340 crore rupees, compared with 695 crore rupees a year earlier.

The figures were discussed in the ROIC AI earnings-call transcript. Management said the year-on-year profit comparison was affected by the timing of dividends: the comparable dividend was received in the first quarter of the current fiscal year, rather than in the second quarter as in the previous year.

Lending provides the main growth engine

Jio Credit's gross assets under management rose 154 percent year over year to 37,320 crore rupees. Quarterly disbursements reached a record 13,135 crore rupees, while net interest income increased 116 percent to 302 crore rupees. Jio Credit's profit after tax rose 140 percent year over year to 120 crore rupees.

Across the wider group, pre-provision operating profit increased 85 percent year over year to 574 crore rupees. Interest income rose 221 percent to 1,258 crore rupees, but total expenses climbed 166 percent to 1,125 crore rupees as finance costs increased with the expansion of lending operations.

Strategic partnerships add capacity

During the quarter, Bank of America agreed to acquire a 49.9 percent stake in Jio Credit, subject to regulatory and statutory approvals. Jio Financial Services said the transaction is expected to bring around 18,000 crore rupees in growth capital, including an initial investment of approximately 9,500 crore rupees subject to approvals.

The company also reported progress in payments, asset management and insurance. Jio Payments Bank's deposits rose 53 percent year over year to 643 crore rupees, while Jio BlackRock Asset Management's closing assets under management reached 22,746 crore rupees, up 57 percent.

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