Jio Financial Services shares in focus after Q3 PAT drops 9% YoY – News Air Insight

Spread the love


Shares of Jio Financial Services are likely to be in focus on Friday, January 16, after the company reported a 9% year-on-year (YoY) decline in net profit for the December quarter. The company posted a net profit of Rs 269 crore for the third quarter of FY26, compared with Rs 295 crore in the same period last year.

Despite the decline in profitability, the quarter saw strong growth in operating income, driven by robust interest and fee-based revenues.

Revenue from operations more than doubled to Rs 901 crore in Q3FY26 from Rs 438 crore in the corresponding quarter last year, marking a 106% year-on-year growth. On a sequential basis, however, total income declined 10% to Rs 902 crore from Rs 1,002 crore in Q2FY26, while operating revenue fell 8%.

Net profit also dropped 61% quarter-on-quarter from Rs 695 crore in the September quarter.

Interest income surged 140% year-on-year to Rs 504 crore, driven by the expansion of the lending portfolio. Fee, commission and other services income jumped 394% to Rs 182 crore from Rs 37 crore a year ago.


Net gains from fair value changes stood at Rs 214 crore, up 12% year-on-year.

Expenses rose sharply during the quarter, with total costs climbing to Rs 566 crore from Rs 131 crore in the year-ago period, a 333% increase. Finance costs were Rs 212 crore, compared with nil in the same quarter last year.The company’s NBFC operations continued to scale, with assets under management (AUM) reaching Rs 19,049 crore, a 4.5-times increase year-on-year. Sequentially, AUM grew 29%, supported by strong loan disbursements across segments.

Meanwhile, the asset management business also maintained traction, with AMC AUM at Rs 14,972 crore across 10 mutual fund schemes and a retail investor base of around 1 million.

Also read: RIL Q3 Preview: Strong O2C, Jio to aid revenue growth; retail growth seen lagging

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *