Jio Financial Services loan growth and BlackRock AUM momentum support long-term earnings

Investment View and Valuation

Geojit Investments Limited retains its BUY rating on Jio Financial Services Limited. The broker remains positive on the company because of organic loan originations, rapid expansion of its payments ecosystem and progress in scaling its lending, payments and asset-management businesses into meaningful earnings drivers.

Geojit has rolled forward its target price to Rs 273, valuing the stock at 1.3 times FY28E book value per share.

Q4 FY26 Financial Performance

Jio Financial Services reported consolidated Q4 FY26 revenue of Rs 1,020 crore, up 96.7 per cent year-on-year and 13.2 per cent sequentially. Net interest income increased 48.4 per cent year-on-year to Rs 720 crore, supported by loan-book growth and higher interest income from Jio Credit's expanding lending operations.

However, reported pre-provision operating profit declined 12.4 per cent year-on-year to Rs 327 crore, while profit after tax fell 13.9 per cent to Rs 272 crore. Geojit attributed the lower profitability to continued investment for scaling emerging businesses, elevated finance costs and reduced treasury income as yields rose sharply amid geopolitical developments.

FY26 Results and Earnings Outlook

For FY26, Jio Financial Services reported net interest income of Rs 2,768 crore, up 36.0 per cent year-on-year, and total income of Rs 3,543 crore, up 70.4 per cent. Net profit was Rs 1,561 crore, down 3.2 per cent year-on-year, while adjusted EPS declined 5.0 per cent to Rs 2.4.

Geojit raised its FY27E net interest income estimate by 10.3 per cent to Rs 3,517 crore and its pre-provision profit forecast by 25.0 per cent to Rs 3,210 crore. However, it cut FY27E net profit by 15.1 per cent to Rs 2,101 crore and EPS by 15.2 per cent to Rs 3.3.

Operating Momentum

Management highlighted strong operating momentum across the company's businesses:

• Jio Payments Bank deposits rose 84.4 per cent year-on-year to Rs 544 crore in FY26, while CASA customers increased 61 per cent to 3.7 million.
• The business-correspondent network expanded 19 times year-on-year to 378,568 touchpoints in Q4 FY26.
• Lending disbursements rose 49 per cent year-on-year to Rs 10,629 crore in Q4 FY26, entirely through organic originations.
• JioBlackRock AMC reached closing AUM of Rs 15,218 crore within nine months of its June 2025 launch. Quarterly average AUM rose 21 per cent sequentially to Rs 16,712 crore in Q4 FY26 despite market volatility.
• Insurance premium facilitated in FY26 increased 8 per cent to Rs 982 crore.

Management Priorities and Key Risks

Management's priorities include expanding JioBlackRock mutual-fund offerings, operationalising Allianz insurance joint ventures, launching value-back membership programmes and personal CFO features, and using end-to-end digitisation to improve turnaround times.

Geojit's thesis depends on sustained momentum in the core businesses and the gradual maturation of incubation-stage ventures. Near-term profitability remains exposed to scaling investments, finance costs and treasury-income pressure.