Jio Financial profit falls 59% QoQ as interest costs rise 38.10%
Revenue declined 15.23% sequentially, while a higher tax rate and negative other income added to the pressure on consolidated profit.
Filed 15 Oct 2026, 20:07 IST · after market close · Jio Financial Services Ltd (JIOFIN)
Key takeaways
- Consolidated net profit declined -59.00% QoQ as interest costs rose +38.10%.
- Operating margin narrowed 4.62 percentage points QoQ to 66.04%, extending a decline from 74.60% in Q1FY26 despite the rebound in Q1FY27.
- Revenue rose +73.15% YoY, but expenses grew faster at +96.99% and the tax rate increased 19.21 percentage points.
Price around the results
Sequential profit drop followed a sharper rise in funding costs
Consolidated revenue declined -15.23% QoQ, while expenses fell only -1.87%, reducing operating profit by -20.77%. Interest costs rose +38.10% QoQ, which, along with a 16.07 percentage-point increase in the tax rate, drove profit before tax down -49.52% and net profit down -59.00%.
Margin remains above peers but has lost ground
Operating margin narrowed 4.62 percentage points QoQ because revenue contracted much faster than expenses. It also declined 4.11 percentage points YoY, as expenses grew +96.99% against revenue growth of +73.15%; the current 66.04% margin was still 6.18 percentage points above the 59.86% median of 11 Financial Services peers that had reported.
Earnings quality was weaker than the headline revenue growth
Other income was negative and accounted for -8.94% of profit before tax, so it did not support reported earnings in the quarter. The tax rate rose to 30.45% from 14.38% QoQ and 11.24% YoY, removing the benefit that a lower tax rate had provided in the comparison periods.
No immediate market reaction after the post-close filing
Across the stock's eight prior result reactions, it rose once and fell seven times, with a median absolute move of 1.18%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,699 cr | ₹2,004 cr | -15.23% | +73.15% |
| Other income | ₹-44 cr | ₹-19 cr | -130.51% | — |
| Expenses | ₹577 cr | ₹588 cr | -1.87% | +96.99% |
| Operating profit | ₹1,122 cr | ₹1,416 cr | -20.77% | +63.01% |
| Operating margin (%) | 66.04% | 70.66% | — | — |
| Interest | ₹578 cr | ₹418 cr | +38.10% | +325.36% |
| Depreciation | ₹11 cr | ₹9 cr | +19.68% | +45.94% |
| Profit before tax | ₹489 cr | ₹970 cr | -49.52% | -37.49% |
| Tax | ₹149 cr | ₹139 cr | +6.88% | +69.28% |
| Net profit | ₹340 cr | ₹830 cr | -59.00% | -51.02% |
| EPS (₹) | ₹0.51 | ₹1.27 | -59.84% | -53.64% |
Operating margin of 66.04% compares with a Financial Services sector median of 59.86% across 11 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 66.04% after the 4.62 percentage-point QoQ decline.
- Whether interest-cost growth moderates from +38.10% QoQ.
- Whether the tax rate moves down from 30.45% and other income returns from -43.75.