Jio Financial Services Q2 Results: PAT drops 51% YoY to Rs 340 crore; NII soars 165%

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Reuters

Jio Financial Services saw quarterly profit halve despite robust income growth, while its NBFC business expanded earnings and investment offerings gained traction.

Pre-provisioning operating profit (PPOP), however, rose 85% year-on-year to Rs 574 crore in Q2FY27, from Rs 310 crore in Q2FY26.

Total income more than doubled, rising 132% year-on-year to Rs 1,699 crore in the September quarter, compared with Rs 733 crore a year earlier.

Net interest income (NII) soared 165% year-on-year to Rs 680 crore in Q2FY27, compared with Rs 257 crore in the corresponding quarter of the previous fiscal.

Interest income increased 221% to Rs 1,258 crore from Rs 393 crore in Q2FY26. Income from fees and commissions rose 98% to Rs 277 crore, compared with Rs 140 crore in the year-ago period.

Total expenses also increased 166% year-on-year to Rs 1,125 crore in Q2FY27, from Rs 423 crore in the corresponding quarter of the previous fiscal.

Q2 FY27 business highlights

Jio Financial Services reported growth across several business metrics during the quarter. Jio Gold purchase transactions increased 199% year-on-year, while tax filings rose 40%. Fixed deposit gross merchandise value (GMV) increased 50% quarter-on-quarter.

The company issued more than 34 crore points to 77 lakh customers, while PPC among JioPoint was 25% higher.

JioBlackRock launched Regular Plans across its offerings to enable broader investor participation. Its Liquid Fund ranked first since inception, with quarterly average assets under management (QAAUM) of more than Rs 10,000 crore. Its Overnight and Arbitrage funds ranked in the top quartile of their respective categories since inception. The company's Specialised Investment Fund (SIF) assets under management scaled to Rs 478 crore within three months of launch, placing it among the top 10 in the category.

The GIFT City entity is set to launch the JioBlackRock Advantage World Equity Fund (IFSC) in Q3FY27, enabling global investment opportunities.

The direct-to-customer channel recorded a 55% quarter-on-quarter increase in conversion rates across products, driven by more than 200 tailored customer journeys.

The institutional channel reported 35% growth in account acquisitions and renewals, supported by structured originations.

In the digital point-of-sale person (POSP) channel, premiums facilitated increased nearly sevenfold year-on-year. The enhanced platform supports customer journeys across 42 motor, health and term insurance policies.

NBFC business and consolidated equity

Jio Financial Services completed the full consolidation of RSHL as a wholly owned step-down subsidiary with effect from April 29, 2026. RSHL was previously accounted for under share of associates and joint ventures.

The non-banking financial company (NBFC) business reported a 140% year-on-year increase in PAT to Rs 120 crore, driven by sustained growth in assets under management (AUM).

The company said it maintained targeted investments to scale growth-stage businesses and incubate nascent businesses.

Total consolidated shareholders' equity stood at Rs 1.3 lakh crore as of September 30, 2026.

Net processing margin improved to 14 basis points in Q2FY27, compared with 9 basis points in Q2FY26 and 12 basis points in Q1FY27. Net fee and commission income per employee, on a last-twelve-month basis, increased more than twofold year-on-year.

Jio Financial Services share price

Jio Financial Services shares ended nearly flat at Rs 219.01 apiece on Thursday, compared with the previous close of Rs 219.00.

The stock has declined 26% so far in 2026, according to the data cited. The company had a market capitalisation of Rs 1,44,615

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here