Jio Financial Services Q3 FY26: Profit down 9% on cost rise

What put Jio Financial shares in focus

Jio Financial Services (JFSL) drew market attention after reporting a year-on-year decline in profit for Q3 FY26 despite a sharp jump in income. The company posted consolidated profit after tax (PAT) of ₹269.00 crore for the quarter ended December 31, 2025, compared with ₹295.00 crore in the same quarter last year.

Income growth remained strong, supported by traction in lending, payments and asset management. But profitability was weighed down by a steep rise in operating and finance costs as the company scaled up its operating businesses.

Key Q3 FY26 headline numbers

JFSL reported total income of ₹901.00 crore in Q3 FY26, up from ₹449.00 crore in Q3 FY25. Revenue from operations was reported at ₹900.90 crore, up 105.52% year-on-year from ₹438.35 crore. Sequentially, operating revenue was down around 8% and total income fell from ₹1,002.00 crore in Q2 FY26.

The company also reported gross profit of ₹547 (as provided in the financial performance snapshot), down 19.59% quarter-on-quarter. The broad picture from the quarter was that topline momentum strengthened, but cost growth outpaced operating leverage.

Profit decline driven by expenses and finance costs

Expenses rose to ₹566.00 crore in Q3 FY26 from ₹131.00 crore a year earlier, a 333% year-on-year rise. In another disclosure, total expenses were reported at ₹565.9 crore, up 332% YoY and 30% QoQ.

A key factor was finance costs, which were ₹212.00 crore in Q3 FY26 versus ₹0.00 crore in Q3 FY25. Finance cost was also cited at ₹212.4 crore for the quarter and was up over 56% sequentially from ₹135.8 crore.

JFSL also noted that growth in income was partially offset by higher expenses linked to higher business volumes. In addition, the company’s share of profit from associates and joint ventures declined to ₹36 crore from ₹59 crore, which it attributed to ongoing investments to build scale in its AMC and wealth management company.

Core income mix: interest and fee income surge

Interest income increased to ₹504.00 crore in Q3 FY26 from ₹210.00 crore in Q3 FY25, a 140% rise, supported by the expanding lending book. Fee and commission income rose to ₹182.00 crore from ₹37.00 crore, a 394% jump.

The numbers point to stronger operational activity across the platform-led businesses. At the same time, the quarter showed how quickly costs can rise as balance sheet-led businesses scale and borrowing becomes part of the funding mix.

Lending business: AUM up 4.5x, borrowing base expands

The NBFC operation remained the largest growth driver in Q3 FY26. Assets under management (AUM) rose to ₹19,049.00 crore from ₹4,199.00 crore, up 354% year-on-year and reported as 4.5 times YoY. Gross disbursements stood at ₹8,615.00 crore versus ₹4,168.00 crore, roughly doubling.

Net interest income (NII) rose to ₹165.00 crore from ₹62.00 crore, up 166%. Pre-provisioning operating profit increased to ₹99.00 crore from ₹43.00 crore, a 130% rise. Total borrowings jumped to ₹16,192.00 crore from ₹1,350.00 crore, while the average cost of borrowing was disclosed at 6.99%.

Payments: higher TPV, rising deposits and customer base

The payments ecosystem reported sharp growth in throughput and fee income. Transaction processing volume (TPV) at Jio Payment Solutions rose to ₹16,315.00 crore from ₹6,374.00 crore, up 156%. Gross fee income rose to ₹96.00 crore from ₹21.00 crore, up 357%.

Jio Payments Bank total income increased to ₹61.00 crore from ₹6.00 crore, a 10x jump year-on-year. Deposits rose to ₹507.00 crore from ₹261.00 crore, up 94%, while the customer base increased to 3.20 million from 1.89 million, up 69%.

Asset management: Jio-BlackRock JV scales AUM

JFSL’s asset management business, operated through the Jio-BlackRock joint venture, reported AUM of ₹14,972.00 crore across 10 mutual fund schemes. The retail investor base was described as around one million.

The company also said investment-related spending in the AMC and WMC contributed to moderation in profit share from associates and joint ventures during the quarter.

Market reaction and price moves

Ahead of the results, the stock closed 0.95% higher at ₹287.30 on the NSE. After the results, the stock was reported to be down over 1% around ₹282.60. In a separate update, the shares were also seen trading 0.83% higher at ₹286.95.

These moves reflected a mixed reading: strong operational growth across verticals, but pressure on reported profitability due to the expanding cost base.

Earnings dates investors are tracking

JFSL’s last earnings date was listed as Q3 FY25-26 on 15 January 2026. The upcoming earnings date was listed as Q0 FY25-26 on 17 April 2026.

For investors, the next print will matter for how quickly income growth translates into steadier profitability as the lending book grows and finance costs become a regular part of the P&L.

Key numbers snapshot (all amounts in ₹ crore)

Why the quarter matters

JFSL’s Q3 FY26 results show a company moving deeper into lending and transaction-led businesses, where growth can be rapid but costs can rise quickly. The quarter’s data highlights two clear trends: accelerating operating income lines such as interest and fee income, and a step-up in finance costs as borrowings increase.

The company’s managing director and CEO Hitesh Sethia said business segments continued to grow at a steady speed even though the bottom line was impacted in the quarter. The next few quarters will be watched for how expenses and finance costs behave relative to income, especially as the lending AUM and payments throughput scale further.