Jio Financial shares jump 6% as Q1 profit doubles to ₹830 crore on strong lending growth

Shares of Jio Financial Services (JFSL) surged 6% in early trade on Friday after the Reliance Group's financial services arm reported a more than two-fold jump in its June quarter earnings, driven by robust growth in its lending business and higher investment income.

The share price of Jio Financial rose as much as 6% to ₹249.90 on the BSE. At the time of writing, the stock was trading around ₹244.40, up 3.7%, with a market capitalisation of ₹1.61 lakh crore.

At the current level, Jio Financial share is down around 28% from its 52-week high of ₹338.45 touched on August 5, 2025. It had fallen to a 52-week low of ₹223.30 on March 30, 2026. Jio Financial shares have declined nearly 17% in calendar year 2026 and are down 23% over the past one year.

The rally was triggered after the company reported a sharp improvement in profitability across its core businesses. JFSL posted a consolidated net profit of ₹830 crore for the quarter ended June 30, 2026, a jump of 156% from ₹325 crore in the year-ago period. Sequentially, profit more than tripled from ₹272 crore reported in the March quarter.

Revenue from operations also witnessed strong momentum, rising 227% year-on-year to ₹2,004 crore from ₹612 crore in the corresponding quarter last year. Total income climbed to ₹2,005 crore from ₹619 crore, while interest income nearly tripled to ₹962 crore from ₹363 crore, reflecting the rapid expansion of its lending business.

Total expenses increased to ₹1,016 crore from ₹261 crore as the company continued investing in new businesses and scaling up its existing operations.

The biggest growth driver remained its NBFC subsidiary, Jio Credit, whose assets under management (AUM) jumped 2.6 times year-on-year and 19% sequentially to ₹30,667 crore at the end of June. Loan disbursements rose 173% year-on-year to ₹11,252 crore, supported by strong demand across mortgages, loans against securities, and corporate and SME lending. Net interest income at Jio Credit rose 119% year-on-year, while profit after tax increased 112%.

Motilal Oswal retains Buy rating

According to Motilal Oswal Financial Services, the Q1 earnings reflected improving profitability across JFSL's core operating businesses. The brokerage noted that Jio Credit continued to scale up rapidly, with AUM crossing ₹30,000 crore, while its payments, insurance, and asset management businesses also made steady progress. However, it said operating expenses remained elevated due to continued investments in incubating businesses and expanding distribution.

The management also said the company received the second tranche of ₹5,930 crore from promoters under the preferential warrant issuance during the quarter, taking the cumulative capital infusion to ₹9,890 crore. The remaining capital is expected to be infused over the coming quarters, providing additional firepower to support future growth.

Motilal Oswal trimmed its FY27 and FY28 earnings estimates by 4-6% to account for higher operating expenses but reiterated its 'Buy' rating on the stock with a target price of ₹315. The brokerage expects JFSL to deliver a consolidated profit CAGR of 46% between FY26 and FY28, driven by strong lending growth, improving profitability across its payments businesses, and the gradual scaling up of its insurance, wealth management, and asset management platforms.

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