Jio Financial reports Q2 profit drop: Motilal Oswal rates Jio Financial Services stock Buy

Jio Financial Services (INE758E01017) reported INR 3.40 billion in net income for the second quarter ended September 30, 2026, down 51 percent from the year-earlier period. The results put rapid income growth against a sharper profit contraction, while Motilal Oswal reiterated an INR 300 target for the stock on October 15, 2026.

Profit falls despite income growth

According to The Economic Times on October 15, 2026, total income excluding dividend income rose 132 percent year over year to INR 16.99 billion from INR 7.33 billion. Net interest income increased 165 percent to INR 6.80 billion, while pre-provisioning operating profit rose 85 percent to INR 5.74 billion.

The earnings comparison was less favorable at the bottom line. Net income fell from INR 6.95 billion to INR 3.40 billion, while total expenses rose 166 percent year over year to INR 11.25 billion. The non-banking financial company business generated INR 1.20 billion in profit, an increase of 140 percent, according to the same October 15 report.

What drove the earnings split?

Jio Financial Services expanded lending capacity while absorbing higher costs and investment losses. Its net interest income growth shows that financing operations are scaling, but the net income decline highlights the effect of expenses, credit costs and joint-venture results on consolidated earnings.

The company also reported a 154 percent year-over-year increase in Jio Credit assets under management to INR 373.20 billion as of September 30, 2026, and quarterly disbursements of INR 131.35 billion. These operating figures give investors a clearer view of the expansion behind the income increase.

Analyst target and risk

DSIJ reported on October 15, 2026 that Motilal Oswal retained a Buy rating and an INR 300 target. The report also said the broker cut its fiscal 2027 earnings-per-share estimate by 6.6 percent because of higher provisions, making credit quality and future expense control key counterweights to the lending expansion.

Stock valuation markers

Jio Financial Services was trading at INR 206.55 on the NSE on October 27, 2026 at 1:57 p.m. IST. Its market capitalization was INR 1.4 trillion, while the 52-week range was INR 202.51 to INR 316.85, both as of October 27, 2026. The latest reported results therefore combine strong operating growth with a material profit comparison risk.

Market context: Market report BSE Sensex.

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