JIOFIN - Jio Financial

📊 NSE: JIOFIN 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 8:39

💰 Financial Performance

Revenue Growth by Segment

Consolidated Total Income grew 44% YoY to INR 1,002 Cr in Q2 FY26. Segmental growth includes Interest Income at INR 392 Cr (up 91% YoY from INR 205 Cr), Fees and Commission Income at INR 140 Cr (up 240% YoY), and Dividend Income at INR 269 Cr (up 11.6% YoY from INR 241 Cr).

Geographic Revenue Split

100% of revenue is derived from the Indian market, focusing on democratizing access to finance for the domestic population.

Profitability Margins

Consolidated Profit After Tax (PAT) stood at INR 695 Cr in Q2 FY26, a marginal increase from INR 689 Cr in Q2 FY25 but a 113.8% increase from INR 325 Cr in Q1 FY26. Net Income from Operating Business grew 5x YoY to INR 317 Cr, representing 52% of Consolidated Net Total Income.

EBITDA Margin

Pre-Provisioning Operating Profit (PPoP) was INR 579 Cr in Q2 FY26, up 5% YoY from INR 552 Cr. The PPoP margin is approximately 57.8% of total income, reflecting profitable scaling despite higher consolidation expenses.

Capital Expenditure

The company received the first tranche of INR 3,956 Cr from promoters to provide a formidable capital base for scaling operations. Specific investments include INR 93.50 Cr and INR 136 Cr in BlackRock JVs, and INR 45 Cr in the leasing JV.

Credit Rating & Borrowing

The NBFC (Jio Credit Limited) reduced its average cost of borrowing to 7.06% in Q2 FY26 from 7.85% in Q1 FY26, reflecting strong brand value and balance sheet strength.

⚙️ Operational Drivers

Raw Materials

Capital/Debt (Cost of Funds) is the primary 'raw material', with the average cost of borrowing at 7.06%. Operating expenses (INR 436 Cr) are driven by technology and personnel costs.

Import Sources

Domestic capital markets and promoter equity infusions (INR 3,956 Cr tranche).

Key Suppliers

Reliance Industries Limited (source of INR 269 Cr dividend income), BlackRock (JV partner for AMC/Wealth), and Allianz (JV partner for Reinsurance).

Capacity Expansion

NBFC Assets Under Management (AUM) reached INR 14,712 Cr in Q2 FY26, a 12x increase YoY. AMC AUM reached INR 15,980 Cr within four months of launch. Jio Payments Bank customer base grew to 3 million.

Raw Material Costs

Total expenses including provisions stood at INR 436 Cr in Q2 FY26, up from INR 146 Cr in Q2 FY25, largely due to the full consolidation of Jio Payments Bank.

Manufacturing Efficiency

NBFC debt-to-equity ratio maintained at a conservative 2.4; cost of borrowing improved by 79 basis points QoQ to 7.06%.

Logistics & Distribution

Distribution is handled digitally; Jio Payment Solutions processed INR 13,566 Cr in Transaction Processing Volume (TPV), up 167% YoY.

📈 Strategic Growth

Expected Growth Rate

44%

Growth Strategy

Achieving growth through a 'virtuous flywheel' across four verticals: Borrow, Transact, Protect, and Invest. Strategy includes scaling the NBFC loan book (12x AUM growth), launching 9 mutual fund schemes, and expanding into wealth management, broking, and reinsurance through JVs with BlackRock and Allianz.

Products & Services

Secured lending products, Savings Pro accounts (auto-investing idle money), Flexi Cap Mutual Funds, FASTag digital tolling, insurance broking, and merchant payment solutions.

Brand Portfolio

JioFinance, Jio Credit, Jio Payments Bank, JioBlackRock, Jio Insurance Broking.

New Products/Services

JioBlackRock Flexi Cap Fund (raised INR 1,500 Cr in NFO), 'Savings Pro' accounts, and upcoming wealth management and broking services.

Market Expansion

Expansion into the tolling ecosystem via FASTag ANPR-based systems and scaling the merchant network through a new self-service onboarding portal.

Market Share & Ranking

AMC AUM reached INR 15,980 Cr shortly after launch; NBFC AUM grew 12x YoY, indicating rapid market share capture in digital lending.

Strategic Alliances

50:50 JVs with BlackRock (AMC, Wealth, Broking) and 50:50 JV with Allianz (Reinsurance).

🌍 External Factors

Industry Trends

Shift toward 'intelligent personalization' and digital-first financial ecosystems; the industry is evolving from standalone products to unified platforms like the JioFinance app.

Competitive Landscape

Competes with traditional banks and fintechs; differentiates through a full-stack ecosystem and lower cost of funds (7.06%).

Competitive Moat

Durable advantages include the Reliance ecosystem for distribution, a massive capital base (INR 3,956 Cr infusion), and global expertise through BlackRock and Allianz partnerships.

Macro Economic Sensitivity

Highly sensitive to India's GDP growth (projected ~7%); financial services growth is expected to be a multiple of GDP growth.

Consumer Behavior

Increasing demand for digitized, simple, and 'invisible' financial services integrated into daily life.

Geopolitical Risks

Minimal direct impact due to domestic focus, though global market volatility affects the INR 180 Cr net gain on fair value changes.

⚖️ Regulatory & Governance

Industry Regulations

Regulated by RBI as a Core Investment Company (CIC); NBFC follows prudent provisioning; AMC and Broking require SEBI approvals; Reinsurance requires IRDAI approval.