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Jio Financial’s earnings face pressure from rising costs and provisions

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Jio Financial’s earnings face pressure from rising costs and provisions

Net interest income rose 165% year on year to Rs 6.8 billion, beating estimates by around 18%, while other income declined 28% to Rs 4.4 billion. Other income included investment income of Rs 1.6 billion, compared with Rs 1.8 billion a year earlier.

Operating expenses rose 91% to Rs 5.5 billion, while consolidated profit after tax fell 51% to Rs 3.4 billion; credit costs increased to Rs 408 million from Rs 246 million sequentially. Jio Credit’s assets under management grew 22% sequentially to Rs 373 billion, while disbursements rose 98% year on year to Rs 131 billion. JioBlackRock AMC’s assets under management increased to Rs 227 billion, while Jio Payment Solutions’ transaction volumes fell 24% sequentially despite improved processing margins. Motilal Oswal cut its FY27 EPS estimate by 6.6% but retained its BUY rating and Rs 300 target price, projecting 54% consolidated profit CAGR over FY26-FY28.

5 billion in the September quarter, exceeding estimates by 14%, while credit costs increased sequentially. 9 billion. 4 billion. 8 billion a year earlier, according to Motilal Oswal Financial Services.



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