Jio Financial Services Q2 net profit falls 51% to Rs 340 crore as interest income surges

Jio Financial Services reported a 51% decline in consolidated net profit to Rs 340 crore for the second quarter of FY27, even as strong lending activity and digital adoption drove revenue to more than double.

The headline drop in net profit from Rs 695 crore a year earlier reflected dividend receipts that had boosted earnings in the base period. Stripping out dividend income, profit before tax rose 51% year on year to Rs 489 crore, while pre-provisioning operating profit gained 85% to Rs 574 crore.

Total income excluding dividends rose 132% year on year to Rs 1,699 crore in the quarter ended 30 September 2026, up from Rs 733 crore in the corresponding period last year. Net interest income climbed 165% to Rs 680 crore, supported by a 221% jump in interest income to Rs 1,258 crore.

Key financial metrics for Q2 FY27

Expenses rose 166% to Rs 1,125 crore as the company continued building out its digital infrastructure, branch footprint, and customer platforms across retail and institutional segments.

Lending and wealth management expand

The non-banking financial arm, Jio Credit Limited, saw its net profit surge 140% year on year to Rs 120 crore. Assets under management at the lending unit increased 154% to Rs 37,320 crore, reflecting steady demand for retail credit in India's formalising economy.

Fee and commission income grew 98% to Rs 277 crore. Net processing margins widened to 14 basis points, up from 9 basis points a year earlier and 12 basis points in the preceding quarter. Total consolidated shareholders' equity stood at Rs 1.3 lakh crore at the end of September.

In asset management, the group's closing assets under management grew 57% to Rs 22,746 crore. Joint venture JioBlackRock introduced regular plans across product suites, with its Liquid Fund exceeding Rs 10,000 crore in quarterly average assets under management. The unit's specialised investment fund reached Rs 478 crore in assets within three months of inception, and plans are underway to launch a global equity fund through Gujarat's GIFT City international financial centre.

Transaction activity across digital services also gathered pace. Fixed deposit gross merchandise value rose 50% from the prior quarter, gold purchases tripled, and digital insurance premiums handled via the point-of-sale platform grew nearly sevenfold across 42 motor, health, and term insurance policies.

For the first half of the financial year, total income excluding dividends rose 136% to Rs 3,195 crore, while profit after tax advanced 15% to Rs 1,171 crore.

Shares of Jio Financial Services closed essentially flat at Rs 219.01 on the BSE following the board's approval of the un-audited results.