The analyst said Jio Financial delivered strong operational momentum in the quarter, with fee income jumping 161% and the loan book expanding 26%.
Shares of Jio Financial Services fell on Friday after the company reported flat profit growth for the September quarter despite strong revenue expansion and loan book gains.
Earnings Review
Jio Financial posted modest year-on-year profit growth for the September quarter, even as revenue climbed sharply.
The company posted consolidated net profit of ₹695 crore for the quarter ended September 30, 2025, up just 1% from ₹689 crore in the same period last year. Revenue from operations rose 41% year-on-year to ₹981 crore, while first-half profit grew 2% to ₹1,020 crore.
The company’s performance for the first half of FY26 showed steady improvement in operational income, supported by growing financial services and payments activity.
Analyst View
According to SEBI-registered analyst Front Wave Research, Jio Financial demonstrated “significant operational acceleration” in the second quarter (Q2), led by a surge in fee income and a substantial expansion of its loan portfolio.
The firm noted that consolidated profit after tax rose more than 100% sequentially, driven by a 161% increase in fee and commission income and 26% growth in the loan book.
The analyst said the company’s capital position strengthened following a ₹3,956 crore infusion from promoter group entities. It added that Jio Financial’s formal incorporation of Allianz Jio Reinsurance Limited and the acquisition of SBI’s remaining stake in Jio Payments Bank Limited marked key strategic milestones in building a diversified financial ecosystem.
Risk Factors
Front Wave Research cautioned that the company reported a non-cash loss of ₹9,665 crore under Other Comprehensive Income (OCI) due to mark-to-market losses on equity instruments.
It also pointed out that standalone interest income dropped significantly, suggesting that lending operations are increasingly being shifted to subsidiary units.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘neutral’ amid ‘high’ message volume.
Jio Financial’s stock has risen 1.5% so far in 2025.
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