Jio Financial Services Ltd (JFSL) reported a 51% year on year decline in consolidated net profit to Rs 340.44 crore for the September quarter of FY27, as expenses more than doubled despite strong growth in income and its lending business.
Total income increased 70% to Rs 1,699.41 crore in Q2 FY27 from Rs 1,002.40 crore a year earlier. However, expenses surged to Rs 1,166 crore from Rs 436.50 crore, weighing on the bottom line.
JFSL said the profit comparison was affected by dividend income recorded in earlier periods. The company received Rs 462 Cr in dividend income in Q2 FY26 and Rs 509 crore in Q1 FY27, including dividends linked to Reliance Industries holdings through subsidiaries and associates. No such dividend income was received in the September 2026 quarter, making comparisons with both periods less straightforward.
Interest income, meanwhile, rose sharply to Rs 1,257.68 crore from Rs 392.37 crore in Q2 FY26, reflecting the growing contribution of its financial services operations.
- Jio Credit Drives Lending Growth
Jio Credit continued to expand its loan book, with gross assets under management (AUM) rising 154% year on year to Rs 37,320 crore. Gross loan disbursements nearly doubled to Rs 13,135 crore during the quarter.
Net interest income increased 116% to Rs 302 crore, while profit after tax rose 140% to Rs 120 crore. The growth points to a larger lending operation, although its sustainability will depend on credit quality, funding costs and the returns generated by the expanding portfolio.
Jio Payments Bank also reported growth. Total income rose 213% to Rs 94 crore, while customer deposits increased 53% to Rs 643 crore. Its current and savings account customer base expanded 38% to approximately 40 lakh accounts, with average balances reaching Rs 1,573 per customer.
In payments, Jio Payment Solutions recorded an 8% increase in total payment value to Rs 14,682 crore. Gross fee and commission income rose 70% to Rs 130 crore, while net fee and commission income climbed 74% to Rs 21 Cr. Its net processing margin improved to 14 basis points from 9 basis points a year earlier.
- Insurance, Investments and Global Partnerships
Jio Insurance Broking fee and commission income grew 46% to Rs 54 Cr. The company facilitated insurance premiums worth Rs 346 crore, with retail policies accounting for 21% of the total, up from 17% a year earlier.
JFSL asset management joint venture with BlackRock also continued to expand, with closing assets under management rising 57% year on year to Rs 22,746 crore.
The company is building its financial services portfolio through partnerships across lending, investments and insurance. Bank of America has agreed to acquire up to a 49.9% stake in Jio Credit, subject to regulatory approvals, while JFSL is developing its investment business with BlackRock and its insurance operations with Allianz.
Managing director and CEO Hitesh Sethia said the company’s digital offerings, including JioFinance+ and JioFinance360, are intended to help customers manage their financial needs through a more integrated platform.
The quarter’s results underline the difference between growth in the underlying business and reported consolidated profit. Reuters reported that operating profit before provisions and excluding dividend income rose 85% to Rs 574 crore, even as net profit fell sharply.
For JFSL, the next test is whether lending, payments, insurance and investment services can sustain their growth while controlling funding costs and expenses. The expansion is gaining traction, but consistent earnings from these businesses will matter more than headline income growth alone.
The Unicorn Magazine:- Editing by Dhiraj Shaw
