Jio Financial Q3 Profit Dips 9% to ₹269 Cr Amid Soaring Income

Introduction

Jio Financial Services Ltd (JFSL) announced its financial results for the third quarter ending December 31, 2025, revealing a mixed performance. The company reported a 9% year-on-year (YoY) decline in its consolidated net profit, which stood at ₹269 crore. This is in contrast to the ₹295 crore profit recorded in the same quarter of the previous fiscal year. The decline was even sharper on a sequential basis, with profit falling 61% from ₹695 crore in the second quarter of FY26. However, the company demonstrated robust top-line growth, with its total income more than doubling to ₹901 crore from ₹449 crore a year ago, driven by strong operational momentum across its business verticals.

Detailed Financial Performance

The divergence between income growth and profitability was a key theme in JFSL's Q3 performance. While the 101% YoY surge in total income points to successful business expansion, it was largely offset by a significant increase in total expenses. Expenses for the quarter rose to ₹566 crore, a steep climb from ₹131 crore in the corresponding period last year. This increase includes a finance cost of ₹212.4 crore, which was not present in the year-ago quarter, reflecting the scaling up of its lending operations. The company's pre-provisioning operating profit saw a modest growth of 7% YoY, reaching ₹354 crore.

Lending Business Shows Exceptional Growth

The company's lending arm, Jio Credit Limited, was a standout performer, showcasing rapid scaling. The NBFC's Assets Under Management (AUM) surged by 4.5 times year-on-year to ₹19,049 crore. Gross disbursements during the quarter nearly doubled from the previous year, standing at ₹8,615 crore. This aggressive expansion led to a 166% YoY jump in Net Interest Income (NII) to ₹165 crore. The pre-provisioning operating profit for the lending segment also grew by 130% YoY to ₹99 crore, indicating strong underlying operational health despite the high growth-related costs.

Payments and Asset Management Verticals Gain Momentum

Jio Payments Bank also reported significant growth, with its total income increasing tenfold year-on-year to ₹61 crore. This was driven by a sharp rise in transaction throughput. The bank's customer base expanded by 69% YoY to 3.2 million, and total deposits grew 94% to ₹507 crore. Similarly, the transaction processing volume at Jio Payment Solutions rose 2.6 times YoY to ₹16,315 crore.

The asset management business, a joint venture with BlackRock, continued to build its base. The venture reported an AUM of ₹14,972 crore across 10 funds, serving a retail investor base of one million. A notable trend was that over 40% of its retail AUM came from beyond the top 30 cities, and more than 18% of its investors were new to mutual funds, highlighting its success in financial inclusion.

Management Commentary

Commenting on the results, Hitesh Sethia, Managing Director and CEO of JFSL, expressed confidence in the company's trajectory. “We are witnessing a secular trend in business momentum across all our operating verticals, which has now gained significant velocity. At the same time, we continue to invest for growth across new businesses, positioning them for long-term success,” he stated. Sethia added that the company is well-positioned to shape the future of financial services in India by leveraging technology and data analytics for hyper-personalisation and enhanced accessibility.

Market Impact and Outlook

The market appeared to have factored in the company's growth strategy. Ahead of the results announcement on January 15, 2026, shares of Jio Financial Services closed 0.95% higher at ₹287.30 on the NSE. The Q3 results underscore JFSL's strategy of prioritizing rapid scaling and market capture over immediate profitability. The significant rise in expenses, particularly finance costs, is a direct consequence of its aggressive AUM growth in the lending business. While this has impacted the bottom line in the short term, the strong operational metrics across all segments—lending, payments, and asset management—suggest a solid foundation for future growth. Investors will be watching closely to see how the company balances this high-growth phase with a path towards sustainable profitability.