Jio Financial Services Q2 FY27: NBFC AUM Jumps 154% to ₹37,320 Crore

Jio Financial Services Reports Strong Lending Growth in September Quarter

Jio Financial Services reported a 154% year-on-year increase in gross assets under management at its non-banking financial company subsidiary, Jio Credit Limited, during the second quarter of financial year 2026–27.

The lending business's gross AUM reached ₹37,320 crore as of September 30, 2026, compared with approximately ₹14,709 crore in the corresponding period of the previous financial year.

The increase reflects rapid expansion in secured lending, supported by home loans, loans against property, corporate and small-business financing, and loans against securities.

Jio Credit also reported record quarterly gross disbursements of ₹13,135 crore, an increase of 98% year-on-year.

Net interest income more than doubled to ₹302 crore, demonstrating the growing contribution of lending operations to the company's financial performance.

However, the strong operating momentum contrasted with a decline in consolidated profitability.

Jio Financial Services reported consolidated profit after tax of approximately ₹340 crore for the September quarter, down 51% from approximately ₹695 crore a year earlier.

The decline was primarily associated with the absence of dividend income that had supported earnings in the previous year, alongside higher operating and financing expenses.

The results highlight the distinction between the rapid expansion of Jio Financial Services' underlying businesses and fluctuations in consolidated reported earnings.

Jio Financial Services Q2 FY27: Key Financial Highlights

The figures show strong growth across lending, asset management and payments, although consolidated net profit declined because of changes in income composition and expenses.

Jio Credit AUM Increases From ₹14,709 Crore to ₹37,320 Crore

Jio Credit Limited emerged as the principal growth driver during the September quarter.

Gross assets under management increased to ₹37,320 crore from ₹14,709 crore in Q2 FY26.

This represents an increase of approximately ₹22,611 crore over twelve months.

Sequentially, AUM increased from ₹30,667 crore in the June 2026 quarter.

The quarterly expansion was approximately 21.7%.

The company attributed the growth to strong organic loan originations rather than acquisitions of existing loan portfolios.

Assets under management measure the outstanding lending portfolio under the company's reporting methodology.

A larger AUM base can support interest income growth, but it also increases the importance of funding, underwriting and credit risk management.

For Jio Financial Services, the expansion demonstrates the increasing scale of its lending business.

Jio Credit's Loan Portfolio Growth

The lending portfolio more than doubled over the twelve-month period and continued expanding strongly during the latest quarter.

Quarterly Loan Disbursements Reach Record ₹13,135 Crore

Jio Credit reported gross loan disbursements of ₹13,135 crore during Q2 FY27.

The figure increased 98% year-on-year.

It also exceeded the ₹11,252 crore disbursed during the preceding quarter.

Loan disbursements represent the value of loans provided to borrowers during a reporting period.

They differ from AUM because borrowers may repay existing loans while new credit is issued.

Strong disbursement growth indicates increased lending activity.

However, rapid loan origination requires disciplined credit assessment.

The company must ensure that borrower repayment capacity and collateral quality remain consistent with its risk policies.

For Jio Credit, the increase in disbursements provides evidence of continued demand across its lending products.

Net Interest Income Rises 116% to ₹302 Crore

Jio Credit's net interest income increased 116% year-on-year to ₹302 crore.

Net interest income represents interest earned on lending assets after deducting relevant interest expenses.

It is a central measure of operating performance for lending institutions.

The increase reflects the expansion of Jio Credit's loan portfolio.

However, NII growth can also be influenced by lending yields, funding costs and product composition.

A larger loan book generally creates opportunities for higher interest earnings.

At the same time, the company must obtain sufficient funding to support lending activity.

For Jio Credit, maintaining a balance between borrowing costs and loan pricing will be important as the business scales.

NBFC Profit After Tax Increases 140%

Jio Credit reported profit after tax of approximately ₹120 crore for Q2 FY27.

The figure represented growth of 140% year-on-year.

The improvement demonstrates that the lending subsidiary is beginning to generate a larger contribution to group earnings.

However, subsidiary-level profitability should not be confused with consolidated group profit.

Jio Financial Services operates several businesses with different revenue models and investment requirements.

The consolidated results also include corporate expenses and income from other activities.

Consequently, strong profitability in the lending business can coexist with weaker consolidated earnings.

The company's long-term performance will depend on the profitability of its combined financial services operations.

Mortgages Account for 44.5% of Lending Portfolio

Home loans and loans against property represent approximately 44.5% of Jio Credit's gross AUM.

The mortgage portfolio includes financing secured against residential or other eligible property.

The company reported an average mortgage loan ticket size of approximately ₹1.4 crore.

Average loan tenure stood at approximately 15.9 years.

Mortgage lending can provide long-duration interest income.

However, longer loan tenures create exposure to changes in interest rates, borrower repayment capacity and property valuations.

Collateral can reduce potential losses but does not eliminate credit risk.

For Jio Credit, mortgages represent an important component of its secured lending strategy.

Corporate and SME Loans Contribute 44.2% of AUM

Corporate and small and medium enterprise loans accounted for approximately 44.2% of Jio Credit's portfolio.

The segment includes financing provided to businesses for eligible commercial purposes.

The average loan tenure was approximately 3.26 years.

Corporate and SME lending can support portfolio growth through larger loan sizes.

However, credit quality depends on the financial position of borrowers and their ability to meet repayment obligations.

Business conditions can change because of demand, input costs and financing pressures.

Jio Credit has indicated that its lending portfolio focuses on secured exposures and higher-rated corporate borrowers.

Maintaining underwriting discipline will remain important as the company expands.

Loans Against Securities Make Up Remaining Portfolio

Loans against securities represented approximately 11.3% of Jio Credit's gross AUM.

These loans are secured against eligible financial assets, subject to applicable requirements.

The company reported an average ticket size of approximately ₹1.3 crore for this category.

Securities-backed lending can provide customers with liquidity without requiring the immediate sale of their investments.

However, collateral values can fluctuate with financial markets.

A decline in the value of pledged securities may require additional collateral or repayment.

For lenders, continuous monitoring of collateral values is essential.

Jio Credit's secured lending approach therefore depends on effective risk management across different asset classes.

Jio Credit Loan Portfolio Composition

The portfolio is concentrated in secured lending categories, although the risk characteristics differ across products.

Bank of America Investment Could Strengthen Lending Business

In August 2026, Jio Financial Services announced an agreement with Bank of America concerning a proposed investment in Jio Credit Limited.

Under the arrangement, Bank of America agreed to invest up to approximately $1.9 billion for a 49.9% stake in the lending subsidiary.

The proposed investment is subject to regulatory approvals and other applicable conditions.

If completed, the transaction would provide Jio Credit with substantial additional capital.

It could also strengthen the subsidiary's ability to expand lending operations.

However, the proposed investment should not be treated as completed capital infusion.

The final timing and financial impact will depend on the required approvals and transaction terms.

The agreement represents an important development in Jio Financial Services' strategy to build a large-scale lending platform.

Consolidated Revenue Rises to ₹1,699 Crore

Jio Financial Services reported consolidated revenue from operations of approximately ₹1,699.3 crore during Q2 FY27.

This compares with approximately ₹981.4 crore in the corresponding quarter of FY26.

The increase represents growth of around 73%.

The expansion was supported by stronger activity across lending and other operating businesses.

Interest income increased substantially as the loan portfolio expanded.

Fee and commission income also contributed to revenue.

However, consolidated revenue should be distinguished from total income, which can include dividend income and other financial items.

The September-quarter results demonstrate stronger operating activity even though consolidated net profit declined.

Interest Income Surges to ₹1,257.7 Crore

Jio Financial Services reported consolidated interest income of approximately ₹1,257.7 crore.

The figure increased from ₹392.4 crore a year earlier.

The substantial increase reflects the expansion of the group's interest-earning assets.

Interest income is an important revenue source for lending businesses.

However, higher interest income must be evaluated alongside finance costs.

As loan portfolios expand, lenders often require additional borrowing or capital.

The difference between interest income and interest expenses influences net interest income.

For Jio Financial Services, the rapid growth in lending activity has made interest income a larger component of consolidated revenue.

Consolidated Net Profit Declines 51% to ₹340 Crore

Despite stronger operating revenue, Jio Financial Services reported consolidated profit after tax of approximately ₹340.4 crore.

This compares with approximately ₹695 crore in Q2 FY26.

The decline was approximately 51%.

Sequentially, profit fell from approximately ₹830.3 crore in the June quarter.

The reduction was primarily influenced by the absence of dividend income that had supported earlier results.

The company recorded dividend income of approximately ₹269 crore in Q2 FY26.

It also received approximately ₹508.6 crore of dividend income during Q1 FY27.

No comparable dividend income was recognised in the September 2026 quarter.

This affected reported profitability even as the underlying lending business expanded.

Higher Expenses Also Affect Reported Earnings

Jio Financial Services reported total expenses of approximately ₹1,166.1 crore during Q2 FY27.

This compares with ₹436.5 crore in the year-earlier quarter.

Finance costs increased to approximately ₹577.7 crore from ₹135.8 crore.

The rise reflects the financing requirements associated with business expansion.

Impairment expenses on financial instruments also increased.

These charges rose to approximately ₹40.8 crore from ₹13.2 crore.

Impairment expenses represent recognised provisions or losses associated with financial assets under applicable accounting standards.

For a growing lender, such expenses require close monitoring.

Higher operating costs and provisions can affect profitability even when revenue growth is strong.

Adjusted Operating Profit Increases 85%

Jio Financial Services reported pre-provision operating profit of approximately ₹574 crore after excluding dividend income.

The figure increased 85% year-on-year.

This measure provides an additional perspective on operating performance by removing dividend income and assessing earnings before provisions.

It indicates that the company's underlying businesses generated stronger operating earnings.

However, adjusted operating profit is not equivalent to statutory net profit.

The company must still account for provisions, taxes and other relevant expenses.

For investors, both measures are important.

Adjusted operating profit helps explain operational momentum, while reported net profit reflects the final earnings recognised under the applicable accounting framework.

JioBlackRock Asset Management AUM Reaches ₹22,746 Crore

Jio Financial Services' asset management joint venture with BlackRock continued expanding during the quarter.

JioBlackRock Asset Management reported closing AUM of ₹22,746 crore.

The figure increased approximately 57% year-on-year.

Sequentially, AUM rose approximately 24% from ₹18,412 crore.

Asset management AUM represents the value of investments managed on behalf of customers.

It is distinct from the loan portfolio managed by Jio Credit.

The two figures should not be combined without explaining their different economic characteristics.

Asset management companies generally earn fees based on assets managed and product arrangements.

Their profitability depends on fee rates, operating costs and investment in distribution.

For Jio Financial Services, the growth of JioBlackRock strengthens its presence in investment products.

BlackRock Partnership Supports Investment Product Expansion

Jio Financial Services' partnership with BlackRock is intended to develop investment management offerings for Indian customers.

The joint venture combines Jio's digital distribution capabilities with BlackRock's investment management experience.

India's mutual fund market has expanded as households increase participation in financial assets.

However, asset management remains competitive.

Customers evaluate fund performance, fees, accessibility and service quality.

The JioBlackRock business is seeking to expand its product portfolio and distribution reach.

The increase in AUM indicates growing activity.

However, AUM growth alone does not establish profitability.

The venture must generate sufficient fee income to cover operating and investment expenses.

Jio Payments Bank Deposits Rise 53%

Jio Payments Bank reported deposits of approximately ₹643 crore at the end of September 2026.

The figure increased 53% year-on-year.

The bank's current and savings account customer base stood at approximately 40 lakh accounts.

Payments banks operate under a distinct regulatory framework from conventional commercial banks.

They can provide specified payment and deposit services but are subject to restrictions on lending and other activities.

Deposit growth can indicate increasing customer adoption.

However, the commercial value of deposits depends on permitted investment activities, customer engagement and operating costs.

For Jio Financial Services, the payments bank forms part of its broader digital financial services ecosystem.

Payment Solutions Transaction Value Reaches ₹14,682 Crore

Jio Payment Solutions reported total payment value of ₹14,682 crore during Q2 FY27.

The figure increased approximately 8% year-on-year.

Total payment value measures the value of transactions processed through the business.

It is not equivalent to revenue earned.

Payment companies generally generate income through applicable processing fees and related services.

The business reported an improvement in net processing margin to 14 basis points.

This compares with 9 basis points in Q2 FY26 and 12 basis points in Q1 FY27.

The improvement reflects a shift toward merchant categories and products with stronger economics.

However, the company's future profitability will depend on transaction growth, pricing and operating expenses.

Payment Business Focuses on Higher-Margin Merchants

Jio Payment Solutions has been adjusting its merchant portfolio to improve profitability.

The company has shifted its focus toward business segments with more attractive processing margins.

This strategy resulted in planned customer churn in lower-margin categories.

However, management indicated that the change supported an improvement in net processing margin.

Payment businesses often operate with relatively narrow margins.

Consequently, transaction volume alone does not determine profitability.

The mix of merchants, transaction types and fee arrangements can be equally important.

For Jio Financial Services, the strategy reflects a broader emphasis on profitable growth rather than volume expansion alone.

Cross-Border Payments Create Additional Opportunities

Jio Payment Solutions has introduced cross-border collection capabilities covering more than 100 currencies.

The service includes settlement arrangements for Indian exporters.

Cross-border payment solutions can help businesses receive funds from international customers.

However, such services involve foreign exchange, compliance and settlement requirements.

The financial benefits depend on customer adoption and transaction volumes.

For Jio Financial Services, the initiative expands its potential addressable market beyond domestic merchant payments.

It also provides an opportunity to serve businesses engaged in international trade.

The company will need to maintain appropriate regulatory and operational controls as these services expand.

JioFinance App Expands Digital Customer Engagement

Jio Financial Services reported approximately 3.2 crore unique users across its digital properties.

The company has been developing the JioFinance app as a platform for accessing financial products and services.

The application provides access to offerings across lending, payments, savings and investments.

The company also introduced JioFinance+, a membership programme designed to return a portion of eligible platform commissions to customers.

Another initiative, JioFinance360, provides financial assessment and guidance features.

The company has also expanded digital investment offerings, including JioGold and JioSilver.

These developments are intended to increase customer engagement and cross-selling opportunities.

However, digital user numbers do not directly translate into revenue or profit.

Commercial performance depends on product adoption, transaction frequency and customer economics.

Artificial Intelligence Supports Customer Conversion

Jio Financial Services is using artificial intelligence and machine learning to improve customer engagement.

Management reported that AI-enabled personalisation contributed to a 59% uplift in customer conversion rates.

Data-driven marketing initiatives also supported improvements in campaign conversion performance.

These applications are intended to match financial products with customer requirements.

However, AI-based recommendations in financial services require appropriate governance.

Companies must consider data protection, suitability and regulatory obligations.

For Jio Financial Services, digital technology provides an opportunity to serve customers at scale.

The financial benefits will depend on whether improved conversion produces sustainable revenue and profitability.

Insurance Distribution Adds Another Revenue Stream

Jio Insurance Broking facilitated insurance premiums of approximately ₹346 crore during the quarter.

Insurance distribution allows customers to access policies offered by insurers through an intermediary.

The business can generate commission income under applicable arrangements.

However, facilitated premiums should not be confused with revenue earned by the insurance broker.

The company must also comply with regulatory requirements concerning product distribution and customer protection.

For Jio Financial Services, insurance distribution provides an additional opportunity to serve customers through its digital ecosystem.

The business complements lending, payments and investment products.

Its contribution to group profitability will depend on customer adoption and operating efficiency.

Reinsurance Business Expands Through Allianz Partnership

Jio Financial Services is also participating in reinsurance through Allianz Jio Reinsurance Limited.

The business commenced operations in March 2026.

During Q2 FY27, it reported gross written premiums of approximately ₹244 crore.

Reinsurance involves insurers transferring specified risks to other insurance companies.

It plays an important role in managing large or concentrated insurance exposures.

The business is subject to underwriting, claims and regulatory risks.

Management indicated that quarterly premium activity was influenced by adjustments in crop insurance exposure.

For Jio Financial Services, reinsurance represents another component of its expanding financial services portfolio.

However, the business remains relatively new and its long-term profitability has yet to be established.

Reliance Ecosystem Supports Distribution Opportunities

Jio Financial Services was listed in 2023 following its demerger from Reliance Industries.

The company has since expanded across multiple financial services categories.

Its strategy includes using digital platforms and customer relationships to improve product distribution.

The wider Reliance and Jio ecosystem provides potential access to a large customer base.

However, access to customers does not guarantee financial product adoption.

Lending requires credit assessment, while investment and insurance products must meet applicable suitability and regulatory requirements.

The company must also compete with established financial institutions.

For Jio Financial Services, the opportunity lies in converting digital reach into sustainable financial services relationships.

Rapid Loan Growth Increases Risk Management Requirements

Jio Credit's 154% annual AUM growth represents substantial expansion.

However, rapid lending growth can increase exposure to credit and operational risks.

The company must assess borrower repayment capacity and monitor collateral values.

Mortgage lending involves property-related risks.

Corporate and SME loans depend on business performance.

Loans against securities are exposed to financial market fluctuations.

Funding and liquidity management are also important.

Jio Credit has emphasised secured lending and risk-calibrated expansion.

The effectiveness of this approach will become clearer as the loan portfolio matures and repayment performance can be assessed over a longer period.

What Investors Should Monitor Next

The most important indicator will be the sustainability of Jio Credit's lending growth.

The subsidiary has expanded gross AUM to ₹37,320 crore and reported record quarterly disbursements.

Investors will monitor whether this growth translates into continued net interest income and profit expansion.

Asset quality and impairment expenses will also be important.

The proposed Bank of America investment could materially strengthen the lending subsidiary's capital position if completed.

In asset management, the focus will be on converting AUM growth into fee income.

For payments, processing margins and transaction activity will remain relevant.

Consolidated earnings will also depend on the contribution of dividend income, operating expenses and the profitability of newer businesses.

Conclusion

Jio Financial Services reported strong operating momentum during the second quarter of FY27, led by rapid expansion in its lending business.

Jio Credit's gross assets under management increased 154% year-on-year to ₹37,320 crore.

Quarterly disbursements rose 98% to ₹13,135 crore, while net interest income increased 116% to ₹302 crore.

The lending subsidiary's profit after tax also increased 140% to approximately ₹120 crore.

The company's asset management and payments businesses continued to expand, with JioBlackRock AMC reporting ₹22,746 crore in AUM.

However, consolidated net profit declined 51% to approximately ₹340 crore, largely because of the absence of dividend income recorded in the previous year and higher expenses.

Adjusted pre-provision operating profit, excluding dividend income, increased 85%, indicating stronger underlying business activity.

The proposed Bank of America investment could support the next stage of lending expansion, subject to regulatory approval.

For Jio Financial Services, the central challenge will be converting rapid growth across its financial services ecosystem into sustainable consolidated profitability while maintaining credit quality and operational discipline.