Jio Financial Services share price jumps 6% after Q1 profit soars 155%; should you buy the stock?

Jio Financial Services Q1 Results 2026: Shares of Jio Financial Services surged 6% to ₹250 on the BSE on Friday after the company reported a 155% year-on-year (YoY) jump in consolidated net profit to ₹830 crore for the June quarter, compared with ₹325 crore in the corresponding period last year.

The company also reported robust growth in its top line, with revenue from operations rising 227% YoY to ₹2,004 crore from ₹612 crore a year ago. Interest income increased 165% to ₹962 crore, while fee and commission income climbed to ₹325 crore from ₹54 crore in the year-ago quarter.

Buy, sell or hold Jio Financial shares?

Motilal Oswal maintained its 'Buy' rating on Jio Financial Services with a target price of ₹315, implying a potential upside of 34% from current levels.

The brokerage said the company delivered a healthy June-quarter performance, supported by strong growth in Jio Credit, whose assets under management (AUM) crossed ₹300 billion.

It also pointed to steady progress across the company's payments, insurance and asset management businesses. However, Motilal Oswal noted that operating expenses remained elevated as Jio Financial continued to invest in scaling up its existing operations and incubating new businesses.

The brokerage reduced its FY27 and FY28 earnings per share (EPS) estimates by 4% and 6%, respectively, to factor in higher operating costs. Despite this, it expects the company's consolidated profit after tax (PAT) to grow at a 46% CAGR between FY26 and FY28.

Jio Financial share performance

Jio Financial Services shares have declined 22% over the past one year and are down 17% on a year-to-date basis.

However, the stock has gained 1.2% over the past month.

The shares had touched a 52-week high of ₹338.60 on August 5, 2025, while the 52-week low stands at ₹223.30, recorded on March 30, 2026. As of Friday, July 17, 2026, the company's market capitalisation stood at more than ₹1.61 lakh crore.

Jio Financial Services Q1 highlights

The company's segment-wise performance reflected strong growth across its investing and lending businesses during the June quarter. Revenue from the investing business increased 190% YoY to ₹981.73 crore, compared with ₹338.25 crore in the corresponding quarter last year.

Pre-provision operating profit rose 38% YoY to ₹505 crore. During the quarter, the company also received dividend income of ₹509 crore.

The company's lending business recorded 177% YoY growth in revenue to ₹698.08 crore during the June quarter, compared with ₹251.49 crore in the same period of the previous financial year, according to its consolidated financial statements.

Looking ahead, Hitesh Sethia, Managing Director and CEO of Jio Financial Services, said the company plans to step up investments in the investment solutions and insurance businesses through its joint ventures with BlackRock and Allianz.

“Given the massive opportunity in the country for deeper penetration in sectors like investment solutions and insurance, we are accelerating our investments towards some of our newer businesses, including our JVs with BlackRock and Allianz in these areas, which will yield significant benefits over a period of time,” Sethia said.

The company believes these investments will strengthen its presence across high-growth financial services businesses over the long term while expanding its product offerings through strategic partnerships.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.