Jio Financial Services stock: Motilal Oswal holds INR 300 target

Motilal Oswal has retained its Buy rating and INR 300 target for Jio Financial Services after the company's September-quarter update. The broker's research, summarized by DSIJ, points to rapid operating expansion but also heavier costs, provisions and losses from joint ventures and associates.

Lending and interest income expand

For the second quarter of fiscal 2027, net interest income rose about 165 percent year on year to INR 6.8 billion. Jio Credit's assets under management increased about 22 percent from the previous quarter to around INR 37.3 billion as of September 2026, while disbursements rose about 98 percent year on year to INR 13.1 billion.

DSIJ said Jio Credit generated net interest income of INR 3.0 billion and profit after tax of INR 1.2 billion in the quarter. Average borrowing costs were broadly stable at 7.08 percent, while management emphasized secured lending, disciplined underwriting and calibrated risk-taking.

Costs weigh on consolidated earnings

The broader group faced a less favorable earnings mix. Operating expenditure rose about 91 percent year on year to INR 5.5 billion, and credit costs increased to INR 408 million from INR 246 million in the first quarter. Consolidated profit after tax was around INR 3.4 billion, down about 51 percent year on year. DSIJ attributed part of the decline to a INR 439 million share of losses from joint ventures and associates.

Motilal Oswal cut its fiscal 2027 earnings-per-share estimate by about 6.6 percent to reflect higher provisions, while raising its fiscal 2028 estimate on stronger net interest income. Its target is based on a September 2028 sum-of-the-parts valuation that includes the Reliance Industries stake and cash investments, but excludes several incubating businesses such as insurance manufacturing, wealth management, broking and the marketplace.

Expansion across financial services

JioBlackRock AMC assets under management reached INR 22.7 billion, compared with INR 18.4 billion in June 2026. Jio Payments Bank had around four million CASA customers, while Jio Payment Solutions processed INR 147 billion of transactions during the quarter.

Broader market developments are covered in the current market reports.

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