Company Update : Jio Financial Services by Motilal Oswal Financial Services Ltd
Strong momentum sustained in lending; AMC off to a solid start
NBFC AUM rises ~16% QoQ; consolidated PAT grows ~4% YoY
* Jio Financial Services (JFSL)’s 1QFY26 consolidated NII grew ~63% YoY to INR2.6b (PY: ~INR1.6b). Other income, including investment income of ~INR2b (PY: INR2.2b), was flat YoY at INR2.6b.
* Opex rose ~96% YoY to INR1.5b (PY: ~INR790m), including employee expenses, which rose ~63% YoY to INR637m. PPoP grew ~8% YoY to INR3.7b. (PY: INR3.4b). Credit costs in 1QFY26 stood at INR70m (v/s INR239m in 4QFY25).
* The profit share of JV & Associate dipped ~49% YoY to ~INR315m (PY: ~INR619m). This is because it includes both the JVs with BlackRock, where investments were required, but these entities have not started full operations as yet.
* JFSL completed the acquisition of SBI’s 14.96% stake in Jio Payments Bank Limited (JPBL) for ~INR1.05b, and JPBL is now a wholly owned subsidiary of JFSL. This transaction also led to an exceptional gain of ~INR286m, representing an excess of fair value gain on remeasurement of investment in JPBL.
* JFSL’s 1QFY26 consol. PAT (incl. exceptional items) grew ~4% YoY to ~INR3.2b
Strong momentum in lending business; AUM rises 16% QoQ
* Jio Credit’s AUM grew ~16% QoQ to ~INR117b as of Jun’25 (vs. ~INR101b in Mar’25). NII in 1QFY26 in the NBFC business stood at INR1.2b and grew ~240% YoY. PAT stood at INR450m and grew ~24% YoY.
* Jio Credit offers Retail Home Loans, LAP, Loan against Securities, including Loan against Mutual Funds. It also has an extensive corporate product suite, including Vendor financing, Working capital loans, Term loans, and Factoring.
* JFSL has established strong partnerships with both online aggregators and offline channel partners to expand the distribution of its Home Loans and LAP offerings. It has also collaborated with reputed builders and developers nationwide to enable seamless home loan access at the point of property purchase.
* Going forward, 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.
* has been assigned an ‘AAA’ rating by CareEdge and CRISIL for its new NCD facility. CRAR in Jio Credit stood at 38.2% with a D/E ratio of 1.7x as of Jun’25.
AMC business: Strong response to maiden NFO; AUM at INR179b
* Jio BlackRock entities for asset management, wealth management, and broking have received the required regulatory approvals.
* AMC AUM stood at INR178.8b following its NFO closure on 2 nd Jul’25. The company is among the top 15 AMCs by debt assets under management.
* Jio BlackRock’s NFOs across overnight, liquid, and money market funds saw strong traction, with participation from over 90 institutional investors and 67,000+ retail investors, reflecting early confidence in its asset management platform.
* Further, the asset management company received regulatory approval for five new index funds in Jul’25.
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.
* Broking: Incorporated Jio BlackRock Broking to offer broking services in Jan’25. The company received a license for broking in Jun’25.
* Jio Payments Bank (JPBL): Payment bank CASA customers stood at ~2.58m, and it expanded its business correspondents (BC) network to ~50,567 (PQ: ~20k). Deposits stood at INR3.6b as of Jun’25 (PY: INR1.2b). The transaction banking throughput from AePS and DMT rose 10x QoQ. JFSL completed the acquisition of SBI’s 14.96% stake in JPBL for ~INR1.05b, and JPBL is now a wholly owned subsidiary of JFSL.
* Jio Payment Solutions (JPSL): The company has launched a developer portal for SMBs to integrate and scale payment solutions using JPSL’s API and tools. Transaction processing volumes grew 29% QoQ to INR77b during the quarter (PQ: INR60b)
* Jio Insurance Broking: It has a product portfolio of 65 direct-to-customer plans.
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