Jio Financial Q2 FY27 Results (NSE: JIOFIN)
Signal: Earnings declined
The read
The trajectory has shifted from investing-led earnings to lending-led scale: lending revenue rose 205.7% YoY and loans reached ₹37,493.41 crore, but the transition is currently dilutive because finance costs rose 325.3%, cost-to-income worsened to 68.6%, investing result fell 63.3%, and PAT fell 51.0% YoY to ₹340.44 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,699.41 Cr | +69.5% | -15.2% |
| Net profit | ₹340.44 Cr | -51.0% | |
| EPS | ₹0.51 | -53.6% | |
| EBIT margin | 0% |
P&L walk
Total income rose 69.5% YoY to ₹1,699.41 crore but fell 15.2% QoQ; finance costs increased 325.3% YoY to ₹577.73 crore and PAT fell 51.0% YoY to ₹340.44 crore as investing earnings and associate/JV contributions weakened.
Segments
Lending was the growth engine, with revenue up 205.7% YoY to ₹920.36 crore and result up 95.4% to ₹147.90 crore, but Investing dragged the group as revenue fell 28.4% to ₹521.42 crore and result fell 63.3% to ₹238.70 crore; Others remained loss-making at ₹46.16 crore.
Key positives
- Lending revenue increased 205.7% YoY to ₹920.36 crore and lending segment result increased 95.4% to ₹147.90 crore, confirming rapid build-out of the financing business.
- Interest income rose 220.5% YoY to ₹1,257.68 crore, while loans increased to ₹37,493.41 crore from ₹25,710.80 crore at March 31, 2026.
- The proposed Bank of America subsidiary investment of up to ₹18,268.22 crore in Jio Credit Limited could materially strengthen the lending platform, subject to statutory and regulatory approvals.
Key concerns
- PAT fell 51.0% YoY to ₹340.44 crore despite total income growth of 69.5%, reflecting sharply higher finance costs and operating expenses.
- Finance costs rose 325.3% YoY to ₹577.73 crore, substantially outpacing total income growth and limiting lending profitability.
- Investing segment result fell 63.3% YoY to ₹238.70 crore, reducing the earnings contribution that historically supported the group.
- Operating cash outflow widened to ₹11,061.72 crore in H1FY27 from ₹4,615.17 crore in H1FY26 as lending and financial assets absorbed cash.
Research and educational content only. Not investment advice.