Jio Financial Services Q2: Profit falls 51% YoY to ₹340 crore as expenses surge; income jumps 70%

Jio Financial Services (JFSL) on Thursday reported a 51% year-on-year (YoY) decline in consolidated net profit to ₹340.44 crore for the September quarter of FY27, compared with ₹695 crore in the year-ago period. The profit was dented by a sharp rise in expenses, which more than doubled to ₹1,166 crore from ₹436.50 crore in Q2 FY26.

Total income, however, rose 70% YoY to ₹1,699.41 crore in Q2 FY27 from ₹1,002.40 crore a year earlier. Interest income increased to ₹1,257.68 crore from ₹392.37 crore in the year-ago period.

JFSL said it had recorded dividend income of ₹462 crore in Q2 FY26 and ₹509 crore in Q1 FY27, including dividends on shares held in Reliance Industries through its subsidiaries and associates. As the company did not receive such dividend income in the September quarter, it said its consolidated net profit for Q2 FY27 was not comparable with the corresponding quarter last year or the preceding quarter.

“Q2 FY27 marked yet another quarter of strong operational growth across our financial services platform. Our strategic playbook is now visibly taking shape with key global partnerships established across our core pillars—lending with Bank of America, investments with BlackRock, and insurance with Allianz Group,” said Hitesh Sethia, Managing Director and CEO of Jio Financial Services.

He said innovations on the JioFinance app, including JioFinance+ and JioFinance360, were central to the company’s aim of becoming a proactive financial adviser for Indian consumers. The initiatives seek to support customers’ long-term financial health while reducing transaction costs by passing on a portion of platform commissions to users.

“As we look ahead, we continue to invest for growth to incubate nascent ventures while deploying support capital for businesses that are actively in their scale-up phase,” Sethia added.

JFSL's lending business sees strong growth

Jio Credit’s gross assets under management (AUM) rose 154% YoY to ₹37,320 crore in Q2 FY27. Gross loan disbursements nearly doubled to ₹13,135 crore during the quarter. Net interest income (NII) increased 116% YoY to ₹302 crore, while profit after tax (PAT) climbed 140% to ₹120 crore.

Jio Payments Bank reported a 213% YoY increase in total income to ₹94 crore in the September quarter, while customer deposits grew 53% to ₹643 crore. Its current account and savings account (CASA) customer base expanded 38% to around 40 lakh accounts, and the average balance per customer rose 14% to ₹1,573.

Jio Payment Solutions recorded an 8% YoY increase in total payment value (TPV) to ₹14,682 crore. Gross fee and commission income rose 70% to ₹130 crore, while net fee and commission income increased 74% to ₹21 crore. Its net processing margin widened to 14 basis points, compared with 9 basis points in Q2 FY26 and 12 basis points in Q1 FY27.

Jio Insurance Broking’s fee and commission income grew 46% YoY to ₹54 crore. The company facilitated insurance premiums worth ₹346 crore during the quarter, with retail premiums accounting for 21% of the total, compared with 17% a year earlier.

“The performance for the second quarter of fiscal year 2027 reflects the compounding momentum across the entire full-stack financial ecosystem. Growth was driven by disciplined, diversified loan book expansion at Jio Credit Limited, rapid scaling of asset management offerings under the BlackRock JVs, and sustained topline growth in the payments vertical,” JFSL said.

During the quarter, Bank of America (BofA) entered into a joint venture agreement with JFSL to acquire up to a 49.9% stake in Jio Credit Limited, subject to regulatory approvals.