Jio Financial Services Limited — Q1 FY26 earnings call

Call held 17 Jul 2025

Management summary

Jio Financial Services showed strong execution in Q1 FY26 with the NBFC AUM crossing Rs 11,665 crores and the JioBlackRock AMC raising Rs 17,800 crores in its maiden NFO. Business income contribution rose from 12% to 40% of total income. The NBFC raised Rs 2,500 crores through NCDs/CPs at competitive rates after receiving AAA rating. Payments Bank BC network expanded to 50,000+ touchpoints. Finance costs rose to Rs 99 crores as external borrowing commenced.

Highlights

  • Consolidated total income grew 48% YoY to Rs 619 crores; PAT at Rs 325 crores

  • NBFC (Jio Credit) AUM grew to Rs 11,665 crores (16% QoQ); now has AAA rating from CRISIL and CareEdge

  • JioBlackRock AMC launched maiden NFO raising Rs 17,800 crores - one of largest cash/debt fund NFOs

  • Business operations income rose from 12% to 40% of net income YoY

  • Jio Payments Bank BC network expanded to 50,000+ touchpoints (from 2,300 in Q1 FY25)

  • Payment Solutions TPV at Rs 7,717 crores, up 93% YoY

  • JPBL customers at 2.58 million; deposits Rs 358 crores (206% YoY growth)

  • SBI stake acquisition in Payments Bank completed for Rs 105 crores; Rs 439 cr gain booked

Concerns

  • Rs 1.4 lakh crore net worth generating Rs 325 cr quarterly PAT = <1% annualized ROE

Key financials

  1. Consolidated Total Income ₹619 Cr +48%YoY
  2. Consolidated PAT ₹325 Cr +3.8%YoY
  3. NBFC AUM ₹11,665 Cr +16%QoQ
  4. PPoP ₹366 Cr +8%YoY
  5. Total Expenses ₹260 Cr +229%YoY
  6. Finance Cost ₹99 Cr
  7. Interest Income ₹363 Cr
  8. Fees & Commission ₹53 Cr
  9. JPBL Customers 25,80,000 +169%YoY
  10. JPBL Deposits ₹358 Cr +206%YoY
  11. Payment TPV ₹7,717 Cr +93%YoY
  12. JioBlackRock NFO AUM ₹17,800 Cr
  13. Consolidated Net Worth ₹1.40L Cr
  14. BC Network 50,000 touchpoints +2,074%YoY

What they filed

Q1 FY27: revenue up 227.5%, net profit up 155.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue694 438 493 612 981 +41%901 +106%1,019 +107%2,004 +227%
EBITDA553 313 338 457 688 +24%555 +77%605 +79%1,397 +206%
Net profit689 295 316 325 695 +1%269 −9%272 −14%830 +155%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • NBFC (Jio Credit)
    ₹11,665 Cr AUM
  • Payments Bank
    ₹358 Cr Deposits25,80,000 Customers
  • Payment Solutions
    ₹7,717 Cr TPV
  • JioBlackRock AMC
    ₹17,800 Cr AUM

Guidance & targets

Strategy

  • Business Income Share Strategy · FY26 · High confidence Continued increase from 40%

    From 12% today

    This is one of the key metrics, which we monitor on an ongoing basis, and we expect this trend to continue as we further scale up.

    — Hitesh Sethia

Risks & concerns

  • Rs 1.4 lakh crore net worth generating Rs 325 cr quarterly PAT = <1% annualized ROE

    high

    Management frames as early-stage investment phase. But massive capital base largely invested in group equity holdings, not deployed in financial services.

    Analyst downplayed

  • Expenses growing 229% YoY while income grows 48% - operating leverage negative

    medium

    Total expenses Rs 260 cr vs Rs 79 cr YoY. Finance costs Rs 99 cr (from near-zero). Employee and opex scaling up. PPoP growth only 8% YoY.

    Both acknowledged

  • NBFC AUM growth slowing from 139% QoQ to 16% QoQ

    medium

    AUM growth decelerating after initial ramp-up phase. Wholesale lending likely a big contributor; sustainability of retail secured lending growth untested.

    Both downplayed

  • No analyst Q&A limits scrutiny of asset quality, NIM, and portfolio composition

    medium

    Unable to probe: actual NIM, NPA metrics, retail vs wholesale AUM split, home loan LTV, geographic concentration.

    Analyst not addressed

Areas of evasion (4)

  • No Q&A conducted
  • No NIM/yield disclosure
  • No retail vs wholesale AUM split
  • No asset quality detail beyond ECL provisions

Q&A highlights

3 direct
No Q&A Session Conducted Direct
All participants will be in a listen-only mode in this call.

JIOFIN continues practice of no analyst Q&A, limiting transparency.

NBFC Cost Lever Strategy Direct
Our strategic advantage is underpinned by four critical cost levers: Cost of Funds (AAA rated), Cost of Acquisition (MyJio ecosystem), Cost of Service (digital-first, no legacy), and Credit Cost (alternate data from Jio ecosystem).

First detailed articulation of NBFC competitive positioning. Jio ecosystem data for credit underwriting and customer acquisition is a unique moat if it works.

JioBlackRock AMC Launch Success Direct
The total AUM of over Rs. 17,800 crores makes it one of the largest cash and debt fund NFOs in India... participation from over 90 institutional investors and over 67,000 individual investors.

Strong inaugural NFO validates the BlackRock partnership and digital distribution capability. Five new index funds approved for further product expansion.

1 min read 4 chapters

Detailed narrative

NBFC Scaling with Full Product Suite and AAA Rating

Jio Credit Limited's AUM reached Rs 11,665 crores, growing 16% QoQ. Products span commercial lending (term loans, supply chain finance, working capital, factoring) and retail secured (home loans, LAP, LAS, LAMF). Received AAA rating from CRISIL and CareEdge. Raised Rs 2,500 crores through NCDs/CPs at competitive rates. Physical presence in 11 cities with plans to expand. NBFC MD Kusal Roy provided detailed commentary for the first time.

JioBlackRock AMC Launches with Blockbuster NFO

JioBlackRock Asset Management received regulatory approval in May 2025 and launched maiden NFO across Overnight, Liquid, and Money Market funds, raising Rs 17,800 crores from 90+ institutional and 67,000+ individual investors. Five new index funds approved. Wealth management and broking operations also received regulatory approvals. Using BlackRock's Aladdin platform for investment management.

Payments Ecosystem Expanding Rapidly

Jio Payments Bank BC network exploded to 50,000+ touchpoints from 2,300 a year ago. Customer base at 2.58 million with Rs 358 crore deposits. Empaneled by NHAI for toll processing at 3 national highway plazas. Transaction banking value grew 10x QoQ. Payment Solutions TPV at Rs 7,717 crores (93% YoY). Launched Developer Portal for merchant payment API integration.

Financial Profile Transitioning from Treasury to Operations

Business income contribution rose from 12% to 40% of net income, a key management KPI. Interest income Rs 363 crores (includes lending and treasury). Finance costs emerged at Rs 99 crores as NBFC commenced market borrowing. Consolidated PAT Rs 325 crores, up marginally. Net worth Rs 1.4 lakh crores providing massive runway for growth but implying sub-1% ROE.

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