Jio Financial Services Q2 FY27: How Its 6 Subsidiaries Performed Across Lending, Payments, Insurance and Investments
The shares of this large-cap company, majorly engaged in providing financial services operating business through its consumer-facing subsidiaries namely Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), Jio Payment Solutions Limited (JPSL) and a joint venture i.e, Jio Payments Bank Limited (JPBL), are in focus after announcing Q2 FY27 results. Lets look at the performance of the subsidiary companies of Jio Financial Services.
With the market capitalization of Rs. 1,094.98 crore, the shares of Jio Financial Services Ltd were trading at around Rs. 216 per share which is 32 percent discount from its 52 week high of Rs. 317 per share and is trading at a P/E of 83.4 whereas industry P/E stands at 21.4
Q2 FY27 Result
Year on Year analysis: Revenue from operations has increased from Rs. 981 Crores to Rs. 1,699 Crores, up 73 percent. Operating profit has increased from Rs. 688 Crores to Rs. 1078 Crores, up 57 percent and net profit has decreased from Rs. 695 Crores to Rs. 340 Crores, down 51 percent.
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Quarter on Quarter analysis: Revenue from operations has decreased from Rs. 2004 Crores to Rs. 1699 Crores, down 15 percent. Operating profit has decreased from Rs. 1397 Crores to Rs. 1078 Crores, down 23 percent and net profit has decreased from Rs. 830 Crores to Rs. 340 Crores, down 59 percent . The sharp fall in net profit is due to higher interest payment. While the company delivered strong revenue performance in Q2 FY27, let us look at the performance of each subsidiary.
1. Jio Credit Limited
Jio Credit Limited, witnessed excellent performance during the second quarter of FY27 owing to high asset under management (AUM), increase in disbursements and efficiencies in operations. The gross asset under management of the company increased by 154 percent year-on-year to Rs. 37,320 crore as compared to Rs. 14,709 crore in Q2 FY26. Disbursements witnessed a growth of 98 percent to Rs. 13,135 crore from Rs. 6,624 crore in the same period last year.
The average ticket size for the mortgage loans offered by Jio Credit is Rs. 1.4 crore and its average tenor is 15.9 years. For retail loans against securities, the average ticket size is Rs. 1.3 crore and the average tenor is three years.
2. Jio Payments Bank Limited
In Q2 of fiscal year 2027 (FY27), Jio Payments Bank experienced a positive change in its operational scale. Total revenue grew 213 percent year on year from Rs. 30 crore to Rs. 94 crore. Its customer database also grew since the number of CASA customers grew 38 percent from 29 lakh to 40 lakh customers in comparison with the same period of last year.
The amount of customer deposits grew by 53 percent from Rs. 421 crore in Q2 FY26 to Rs. 643 crore. Moreover, the network of the business correspondent improved from 200,313 to 633,030 touchpoints. The bank obtained approvals to offer a three-in-one savings account as well as operate as a banker to an issue for public issues and IPOs.
3. Jio Payment Solutions Limited
Fee income and processing margin of Jio Payment Solutions witnessed improvement in Q2 FY27. The total payment value (TPV) increased by 8 percent to Rs. 14,682 crore from Rs. 13,566 crore in Q2 FY26. There was a growth in gross fee and commission income to 70 percent , up to Rs. 130 crore, and net fee and commission income to 74 percent , up to Rs. 21 crore.
The net processing margin witnessed improvement to 14 basis points from 9 basis points in Q2 FY26 and 12 basis points in Q1 FY27. The company launched contactless Tap-and-Pay on POS terminals, cross-border collection in over 100 currencies and automated subscription payment services. The company's efforts to improve quality of merchants and product mix led to margin improvement; however, TPV continued to be lower compared to Rs. 19,208 crore reported in the previous quarter.
4. JioFinance Platform
The segment expanded further in the digital financial services ecosystem by providing various services under categories such as borrowing, investments, payment solutions, and insurance services. In the second quarter of FY27, the platform had 3.2 crore unique users in its digital properties with an average number of 80 lakh monthly active users.
Purchase transactions of Jio Gold increased by 199 percent on a year-over-year basis, while there was a 40 percent increase in tax filings. Fixed deposits gross merchandise value increased by 50 percent from the previous quarter. More than 34 crore JioPoints were issued to 77 lakh customers from February 2026. There were two new initiatives introduced including JioFinance+ which was a value back subscription service and JioFinance360 which was the financial assessment and advisory solution.
5. JioBlackRock Asset Management
Further expansion in the mutual fund space took place by JioBlackRock Asset Management in Q2 FY27. Closing AUM grew by 57 percent on a year-on-year basis to Rs. 22,746 crore from Rs. 14,515 crore. The average AUM for the quarter witnessed an increase of 77 percent to Rs. 22,769 crore from Rs. 12,890 crore in Q2 FY26.
The company introduced new products with the listing of the JioBlackRock Nifty 50 ETF, Balanced Advantage Fund and Prism Hybrid Long-Short SIF. The liquid fund saw a quarterly average AUM of over Rs. 10,000 crore, and the SIF grew to Rs. 478 crore AUM in three months of listing. Approximately 40 percent of retail AUM was from outside the top 30 cities, with 18.6 percent of the investors being new to the mutual fund category.
6. Jio Insurance Broking Limited
Jio Insurance Broking's total premium facilitated was Rs. 346 crore in Q2 FY27, fairly stable as against Rs. 347 crore in Q2 FY26. Nevertheless, the total fee & commission income rose by 46 percent to Rs. 54 crore from Rs. 37 crore.
There was a change in premium mix favoring retail business in Q2 FY27 by the company. Retail premiums contributed 21 percent in Q2 FY27 against 9 percent in Q2 FY26, whereas there was a reduction in corporate profits from 91 percent to 79 percent . The direct customer channel witnessed a 55 percent sequential growth in conversion rates due to customized journeys of the customers. The digital point of sales channel also enabled premiums at around seven times the levels of previous year.
Conclusion
Overall, Jio Financial Services is advancing well across all areas of its loan services, payments, investments, digitization, and insurance services. All areas of focus continue to grow through product innovation, distribution and partnerships. The key for the future will be seeing how these innovations translate into stronger business performance. The speed of implementation, customer uptake and the growth of newer services will be critical in determining the company's performance.