Jio Financial Q3 FY26: Total income up 101% YoY to Rs 901 crore; profit down to Rs 269 crore

Jio Financial Services Ltd on Tuesday reported a sharp expansion in its core operating businesses in the December quarter, even as higher costs and lower treasury gains weighed on overall profitability.

The board of Jio Financial Services Limited approved the unaudited results for the third quarter of FY26 at a meeting in Mumbai. Consolidated total income for the quarter stood at Rs 901 crore, up 101% year-on-year, driven by rapid scaling across lending, payments, asset management and insurance distribution businesses.

Profit after tax for Q3 FY26 came in at Rs 269 crore, down 9% from Rs 295 crore a year earlier. On a sequential basis, profit declined sharply from Rs 695 crore in Q2 FY26, reflecting a moderation in treasury income and a significant rise in operating expenses. Total income also fell 10% quarter-on-quarter from Rs 1,002 crore in the September quarter.

Operating momentum across businesses remained strong. Pre-provisioning operating profit rose 7% year-on-year to Rs 354 crore, although the benefit of higher income was partly offset by rising expenses in line with volume-led growth across verticals. Total expenses surged to Rs 566 crore from Rs 131 crore a year ago, while finance costs rose to Rs 212 crore from nil in the corresponding quarter last year.

The contribution of operating businesses to consolidated net income continued to increase. The share of net income from business rose to 55% in Q3 FY26, from 20% a year earlier, underscoring the company’s transition from treasury-led earnings to operating income-led growth. Share of profit from associates and joint ventures declined to Rs 36 crore from Rs 59 crore in Q3 FY25, reflecting ongoing investments in the asset management and wealth management businesses.

The non-banking finance company remained the largest growth driver. Assets under management stood at Rs 19,049 crore as of December 31, 2025, a 4.5x increase year-on-year and a 29% rise over the previous quarter. Gross disbursements during the quarter were Rs 8,615 crore, nearly doubling year-on-year and up 30% sequentially. Net interest income rose 166% year-on-year to Rs 165 crore, supported by growth in interest-earning assets and a declining cost of funds. Pre-provisioning operating profit for the lending business increased to Rs 99 crore, up 130% year-on-year.

Interest income at the consolidated level surged 140% year-on-year to Rs 504 crore, reflecting the rapid scaling of the lending book. Fee, commission and other services income rose sharply to Rs 182 crore from Rs 37 crore a year ago, a growth of 392%. Net gains on fair value changes stood at Rs 214 crore, up 12% year-on-year.

The asset management business also gained traction. Assets under management stood at Rs 14,972 crore across 10 mutual fund schemes, with a retail investor base of around one million. Within the Jio-BlackRock joint venture, 51% of investors had active SIPs, over 40% of retail AUM came from B30 cities, and more than 18% of investors were first-time mutual fund participants. AUM in the Active Equity Flexi Cap Fund rose 70% since its new fund offer, and curated model portfolios were launched during the quarter.

The payments and banking businesses posted strong growth. Jio Payments Bank reported total income of Rs 61 crore, up 10x year-on-year and double sequentially, driven by a threefold increase in transaction throughput. Deposits stood at Rs 507 crore, up 94% year-on-year and 20% quarter-on-quarter, while the customer base grew 69% year-on-year to 3.20 million. The business correspondent network expanded sharply to 2,86,766 BCs, compared with 7,263 a year ago.

Jio Payment Solutions processed transactions worth Rs 16,315 crore during the quarter, up 2.6x year-on-year and 20% sequentially. Gross fee and commission income rose 4.6x year-on-year to Rs 96 crore, with the company maintaining a consistent gross margin of 10 basis points amid a focus on unit-level profitability.

The insurance broking business facilitated premiums of Rs 212 crore in Q3 FY26, up 23% year-on-year, with the digital PoSP channel recording nearly fivefold sequential growth.

The JioFinance app continued to act as the group’s unified digital storefront. During the quarter, the company recorded 20 million unique users across its digital properties, with an average monthly active user base of 9.2 million.

For the nine months ended December 2025, Jio Financial reported total income of Rs 2,523 crore, up 62% year-on-year, while net profit stood at Rs 1,289 crore, marginally lower than Rs 1,296 crore a year earlier. The company also flagged volatility in other comprehensive income, driven by mark-to-market movements in equity instruments and OCI from associates and joint ventures.

Commenting on the performance, managing director and CEO Hitesh Sethia said, “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 added that as the company builds depth, capability and market presence, it is positioning itself for the next phase of financial services growth in India, anchored in technology, data analytics, and hyper-personalised offerings.