Jio Financial shares surge 6% as Q1 profit jumps 156% y-o-y

Jio Financial Services shares surged 6 per cent on Friday after the company reported a sharp rise in first-quarter earnings, driven by strong growth in interest income, fees and commission income, and higher dividend income.

Its consolidated net profit for Q1FY27 rallied 156 per cent y-o-y to ₹830 crore.

According to management commentary, both Jio Payments Bank and Jio Payment Solutions have moved beyond the investment phase and are now contributing positively at the unit economics level.

The company said it continued to invest in incubating its BlackRock asset management, wealth management and broking businesses, along with the Allianz insurance joint ventures.

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Motilal Oswal said Jio Financial posted a healthy quarter, with Jio Credit scaling up well as its assets under management crossed ₹300 billion.

The brokerage said other businesses made steady progress, supported by improving profitability in the payments business and continued traction in its insurance and asset management businesses. However, it noted that operating expenses remained high due to ongoing investments in incubating new businesses and scaling up existing operations.

Motilal Oswal cut its FY27 and FY28 EPS estimates by 4 per cent and 6 per cent, respectively, to account for elevated operating expenses linked to investments in ongoing businesses. The brokerage reiterated its buy rating with a target price of ₹315.

It added that its valuation does not factor in contributions from insurance manufacturing, wealth management, broking and marketplace businesses, which remain in the incubation phase.