Motilal Oswal Initiates Coverage of Jio Financial Services, Sets Target Price of Rs 315

Jio Financial Services Posts Strong 4QFY26 Results

Jio Financial Services (JIOFIN) has reported a significant growth in its consolidated net interest income (NII) for the fourth quarter of fiscal year 2026 (4QFY26). The company's NII grew approximately 28% year-over-year (YoY) to Rs. 3.4 billion (Rupees Three Thousand Four Hundred Million) in the quarter, up from Rs. 2.7 billion in the corresponding period of the previous year.

In addition to the growth in NII, other income for JIOFIN also surged 55% YoY to Rs. 3.8 billion, with investment income contributing Rs. 1.5 billion to this total. However, operating expenses (Opex) saw a sharp increase of approximately 188% YoY to Rs. 3.9 billion, driven by a significant jump in employee expenses of 136% YoY to Rs. 1.3 billion.

On the other hand, profit before provisions (PPoP) declined by approximately 12% YoY to Rs. 3.3 billion in 4QFY26, compared to Rs. 3.7 billion in the corresponding period of the previous year. For the entire fiscal year 2026 (FY26), PPoP grew 2% YoY to Rs. 16.3 billion.

| Metric | 4QFY26 | 4QFY25 | | --- | --- | --- | | NII Growth | 28% | - | | Other Income Growth | 55% | - | | Opex Growth | 188% | - | | Employee Expenses Growth | 136% | - | | PPoP Growth | -12% | - |

Outlook and Recommendation

JIOFIN trades at a price-to-book value (P/BV) ratio of 1x for fiscal year 2027 estimates. Our research team models a consolidated profit after tax (PAT) compound annual growth rate (CAGR) of 50% over the period from FY26 to FY28. Based on this analysis, we reiterate our buy rating on the stock with a target price of Rs. 315, based on the sum-of-the-parts (SoTP) valuation method for the fiscal year 2028 estimates.