Jio Financial shares: 37% upside potential in stock, what else MOFSL says post Q2 earnings
Jio Financial shares: The brokerage cut its FY27 EPS estimates by 6.6% to factor in higher provisions, and raised its FY28 EPS estimate to reflect the improvement in net interest income (NII).
- Oct 16, 2026,
- Updated Oct 16, 2026 12:27 PM IST
Jio Financial Services Ltd (JFSL) shares were trading on a flat note today after the NBFC reported its Q2 earnings. Jio Financial shares stood at Rs 217.25 against the previous close of Rs 218.75. Market cap of the firm stood at Rs 1.43 lakh crore
However, brokerage Motilal Oswal's reaction to the results was not so sombre.
MOFSL said Q2 marked another quarter of strong operational performance for JFSL, reflecting the compounding momentum across its full-stack financial services ecosystem. Growth remained broad-based, driven by disciplined loan book expansion at Jio Credit, rapid scaling of asset management offerings under the BlackRock JVs and steady growth in payments.
The brokerage cut its FY27 EPS estimates by 6.6% to factor in higher provisions, and raised its FY28 EPS estimate to reflect the improvement in net interest income (NII).
"The stock trades at 0.9x FY27E P/BV. We model a consolidated PAT CAGR of 54% over FY26-FY28 and reiterate our BUY rating on the stock with a TP of Rs 300 (based on Sep’28E SoTP). Our SoTP does not factor in valuation from businesses like insurance manufacturing, wealth management, broking and marketplace, which are still in their incubation phase," said MOFSL.
The price target amounts to a 37% upside from the previous close.
The brokerage expects earnings momentum to strengthen every year, driven by disciplined scale-up of business and a focus on profitability. It expects AUM CAGR of 89% and PAT CAGR of 190% over FY26-FY28E, with RoA/RoE of 2.4%/8.8% in FY28E.
Jio Financial logged a 132% year-on-year increase in consolidated total income, excluding dividend income, to Rs 1,699 crore in Q2, supported by growth in lending, asset management and payments.
Pre-provisioning operating profit (PPOP), excluding dividend income, climbed 85% year-on-year to Rs 574 crore, while profit before tax increased 51% to Rs 489 crore. Profit after tax stood at Rs 340 crore. The company noted that profit after tax in the June quarter of FY27 and September quarter of FY26 included dividend income.
Jio Financial Services Ltd (JFSL) shares were trading on a flat note today after the NBFC reported its Q2 earnings. Jio Financial shares stood at Rs 217.25 against the previous close of Rs 218.75. Market cap of the firm stood at Rs 1.43 lakh crore
However, brokerage Motilal Oswal's reaction to the results was not so sombre.
MOFSL said Q2 marked another quarter of strong operational performance for JFSL, reflecting the compounding momentum across its full-stack financial services ecosystem. Growth remained broad-based, driven by disciplined loan book expansion at Jio Credit, rapid scaling of asset management offerings under the BlackRock JVs and steady growth in payments.
The brokerage cut its FY27 EPS estimates by 6.6% to factor in higher provisions, and raised its FY28 EPS estimate to reflect the improvement in net interest income (NII).
"The stock trades at 0.9x FY27E P/BV. We model a consolidated PAT CAGR of 54% over FY26-FY28 and reiterate our BUY rating on the stock with a TP of Rs 300 (based on Sep’28E SoTP). Our SoTP does not factor in valuation from businesses like insurance manufacturing, wealth management, broking and marketplace, which are still in their incubation phase," said MOFSL.
The price target amounts to a 37% upside from the previous close.
The brokerage expects earnings momentum to strengthen every year, driven by disciplined scale-up of business and a focus on profitability. It expects AUM CAGR of 89% and PAT CAGR of 190% over FY26-FY28E, with RoA/RoE of 2.4%/8.8% in FY28E.
Jio Financial logged a 132% year-on-year increase in consolidated total income, excluding dividend income, to Rs 1,699 crore in Q2, supported by growth in lending, asset management and payments.
Pre-provisioning operating profit (PPOP), excluding dividend income, climbed 85% year-on-year to Rs 574 crore, while profit before tax increased 51% to Rs 489 crore. Profit after tax stood at Rs 340 crore. The company noted that profit after tax in the June quarter of FY27 and September quarter of FY26 included dividend income.