Company Update : Jio Financial Services by Motilal Oswal Financial Services Ltd
Lending business scaling well; broad business momentum intact
* NBFC AUM rose ~26% QoQ; consol. PAT was flat YoY
* Jio Financial Services’ (JFSL) 2QFY26 consolidated NII grew ~25% YoY to INR2.6b (PY: ~INR2.1b). Other income grew 25% YoY to INR6.1b, which included investment income of ~INR1.8b (PY: INR2.1b) and dividend income of INR2.7b (PY: INR2.4b).
* Opex rose ~102% YoY to INR2.9b (PY: ~INR1.4b). Employee expenses increased ~40% YoY to INR950m. PPoP grew ~5% YoY to INR5.8b (PY: INR5.5b). Credit costs in 2QFY26 stood at INR132m (vs. INR38m in 2QFY25).
* Share of profit of JV & Associates declined ~4% YoY to ~INR2.2b (PY: ~INR2.3b). Jio Payments Bank, which was earlier a JV, is now a wholly-owned subsidiary of JFSL and is consolidated in the financials of the company.
* JFSL’s 2QFY26 consol. PAT was flat YoY at ~INR6.95b (PY: INR6.9b).
Strong momentum in lending business; AUM up 26% QoQ
* Jio Credit’s AUM grew ~26% QoQ to ~INR147b as of Sep’25 (vs. ~INR117b in Jun’25). Disbursements in 2QFY26 stood at INR66.2b.
* NII in NBFC business stood at INR1.4b (grew ~142% YoY) with PAT of INR500m, which grew ~62% YoY. Jio Credit’s cost of borrowing (CoB) fell to ~7.1% in 2QFY26 (vs. 7.85% in 1QFY26). The company’s lower CoB will also support competitive product pricing while maintaining margins.
* Jio Credit offers retail home loans, LAP, loan against securities, including loan against mutual funds. The company also launched loans against ETFs in 2QFY26.
* The company aims to deepen its presence across major Tier-1 cities. Its lending strategy remains risk-calibrated, with a sharp focus on prime and near-prime retail borrowers, as well as high-rated corporates, to ensure portfolio quality and long-term sustainability.
* CRAR in Jio Credit stood at ~31% with a D/E ratio of 2.4x as of Sep’25.
AMC business: Maiden active equity NFO witnesses strong traction
* AMC AUM stood at INR160b (vs. INR179b as of Jul’25), with participation from 150+ institutional and 635k+ individual investors.
* In 2QFY26, the company launched six funds – four equity index funds, one debt index fund and one active equity fund.
* JioBlackRock Flexi Cap Fund: The company’s first active equity NFO, launched using BlackRock’s SAE framework, garnered strong traction with nearly INR15b raised from over 480k investors. The fund leverages a blend of data, AI, and human expertise to deliver a differentiated investment approach, supported by robust participation from 45+ digital distribution partners.
* The company has a robust pipeline of fund launches for investors across the spectrum, including specialized investment funds, ETFs, and other MF offerings, subject to regulatory approvals.
Progress in other businesses
* Wealth: The company received regulatory approval to operate as an investment adviser in Jun’25. The product roadmap and GTM strategy are under development, and the top leadership team is already in place.
* Jio Payments Bank (JPBL): The bank has a CASA customer base of ~2.95m (PQ: 2.58m), and it expanded its business correspondents (BC) network to ~199k (PQ: ~51k). Deposits stood at INR4.2b as of Sep’25 (PY: INR2.1b). The company entered the toll processing business as a FASTag-acquirer bank by securing the mandate for managing toll operations at 12 toll plazas across various national highway stretches, of which 11 are already operational. JPBL launched an industry-first product, Savings Pro, which allows customers to auto-invest their idle surplus liquidity into overnight mutual funds for higher returns.
* Jio Payment Solutions (JPSL): The company has a comprehensive suite of retail payment devices. The company has partnered with MasterCard to launch Tapand-Pay contactless payment and launched standing instruction on credit cards and UPI Autopay for recurring payments. Transaction processing volume grew ~76% QoQ to INR135b (PQ: INR77b).
* Jio Insurance Broking: ~INR3.5b premium facilitated in 2QFY26 and 290k policies were issued during the quarter.
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