Jio Financial Q1 profit jumps 156 per cent to Rs 830 crore as lending, payments surge

MUMBAI: Jio Financial has found its sweet spot, and the numbers are ringing loud. Jio Financial Services more than doubled its consolidated net profit in the first quarter of FY27, powered by rapid expansion in lending, payments, insurance and asset management businesses.

The Reliance Group financial services company reported a 156 per cent year-on-year rise in consolidated profit after tax to Rs 830 crore for the quarter ended June 30, 2026, compared with Rs 325 crore a year earlier. Sequentially, profit surged 205 per cent from Rs 272 crore in the March quarter.

Revenue from operations climbed 227 per cent year-on-year to Rs 2,004 crore, while total income, excluding dividend income, rose 141 per cent to Rs 1,496 crore. Interest income increased 165 per cent to Rs 962 crore, while fee and commission income jumped fivefold to Rs 325 crore.

The company reported dividend income of Rs 509 crore, taking consolidated profit before tax to Rs 970 crore, up 131 per cent year-on-year. Excluding dividend income, profit before tax rose 18 per cent to Rs 461 crore, while pre-provisioning operating profit increased 38 per cent to Rs 505 crore.

Despite total expenses rising 291 per cent year-on-year to Rs 991 crore, driven by higher finance, employee and operating costs, the company’s diversified businesses delivered strong earnings growth.

As of June 30, 2026, Jio Financial’s consolidated shareholders’ equity stood at Rs 1.37 lakh crore. During the quarter, the company received the second tranche of Rs 5,934 crore from its promoter group, taking cumulative capital infusion to Rs 9,890 crore.

The biggest contributor remained lending. Jio Credit, the group’s non-banking finance arm, saw gross assets under management more than double to Rs 30,667 crore from Rs 11,665 crore a year ago. Quarterly loan disbursements rose to Rs 11,252 crore from Rs 4,127 crore, while profit after tax climbed 113 per cent to Rs 96 crore.

Net interest income at Jio Credit increased 118 per cent to Rs 257 crore, while pre-provisioning operating profit rose 128 per cent to Rs 154 crore. Mortgages accounted for 45.4 per cent of the loan book, corporate and SME loans 44.2 per cent, and retail loans against securities 10.4 per cent. Borrowings increased to Rs 28,120 crore, with an average borrowing cost of 7.07 per cent and a capital adequacy ratio of 22.35 per cent.

The payments business also gathered pace. Jio Payments Bank reported total income of Rs 83 crore, a 7.7-fold increase year-on-year. Customer deposits grew 72 per cent to Rs 617 crore, while CASA accounts rose 51 per cent to 3.9 million. Its business correspondent network expanded to 5,27,037 touchpoints, up from 50,192 a year ago, and the bank now manages digital toll operations across 20 toll plazas, including an ANPR-based Multi-Lane Free Flow system.

Meanwhile, Jio Payment Solutions processed Rs 19,208 crore in total payment value during the quarter, up 2.5 times year-on-year. Gross fee and commission income rose 6.4 times to Rs 176 crore, while net fee income increased 3.4 times to Rs 24 crore. The company also launched cross-border settlement infrastructure to support international remittances for Indian exporters.

Insurance and wealth management businesses also recorded strong momentum. Jio Insurance Broking facilitated insurance premiums worth Rs 238 crore, up 1.6 times year-on-year, while fee and commission income increased 131 per cent to Rs 61 crore. Its digital PoSP channel expanded across 25 states, with premiums rising around 11 times over the previous year.

JioBlackRock Asset Management ended the quarter with assets under management of Rs 18,412 crore, a 21 per cent sequential increase. About 44 per cent of investors have active SIPs, 36 per cent of retail AUM comes from beyond the top 30 cities, and 18.5 per cent of investors are first-time mutual fund participants. During the quarter, the joint venture also raised more than Rs 150 crore through its Prism Specialised Investment Fund and secured final approval from the International Financial Services Centres Authority to operate a retail fund management entity in GIFT City.

On the insurance front, Allianz Jio Reinsurance underwrote Rs 266 crore in gross premiums during its first full quarter of operations. Separately, Jio Allianz General Insurance has been incorporated as a 50:50 joint venture with Allianz and is awaiting statutory and regulatory approvals.

Commenting on the results, Jio Financial Services managing director and CEO Hitesh Sethia said the sustained momentum across business verticals validates the company’s full-stack financial services strategy. He added that AI and data analytics are improving efficiency across operations, while investments in the joint ventures with BlackRock and Allianz are expected to create long-term value as the company expands into investment management and insurance.

With lending assets growing rapidly, payments businesses returning to profitability and new ventures beginning to scale, Jio Financial is steadily broadening its financial services footprint beyond its telecom roots, positioning itself for deeper participation in India’s fast-growing digital finance ecosystem.