Jio Financial Shares Jump 6% After 155% Profit Surge; Brokerages Raise Target Prices

Jio Financial Services shares climbed nearly 6% after the company reported a stellar set of quarterly earnings, boosting investor confidence. The stock was trading around ₹245.96 after touching an intraday high of ₹249.95, as strong profit growth and expanding financial services business attracted buying interest.

Jio Financial Posts 156% Jump in Quarterly Profit

For the quarter ended June 2026, Jio Financial Services reported a 155.73% year-on-year increase in net profit, which rose to ₹830.25 crore from ₹324.66 crore in the corresponding period last year.

Revenue growth was equally impressive, with sales surging 227.28% to ₹2,004.47 crore, compared with ₹612.46 crore a year earlier. The robust earnings triggered a sharp rally in the company's shares.

Why Did Jio Financial Shares Rise?

The strong market reaction was driven by:

156% growth in net profit

More than threefold increase in revenue

Rapid expansion of Jio Credit

Strong momentum across payments, insurance, and asset management businesses

Positive outlook from leading brokerage firms

Should You Buy, Sell or Hold Jio Financial Shares?

Motilal Oswal has reiterated its 'Buy' recommendation on Jio Financial Services and assigned a target price of ₹315, implying an upside potential of nearly 34% from current levels.

According to the brokerage, the company's strong quarterly performance was primarily supported by rapid growth in Jio Credit, where Assets Under Management (AUM) have crossed ₹300 billion.

Growth Across Multiple Financial Businesses

Apart from lending, Jio Financial continues to strengthen its presence in:

Digital payments

Insurance

Asset management

Financial services ecosystem

Brokerages believe these businesses could become major long-term growth drivers as the company expands its customer base.

Operating Costs Remain Elevated

Despite the strong earnings, analysts highlighted that operating expenses remain high because the company continues investing heavily in launching new businesses and expanding existing operations.

Motilal Oswal has marginally reduced its FY27 and FY28 EPS estimates by 4% and 6%, respectively, to account for these higher investments.

Long-Term Outlook Remains Positive

Even after revising earnings estimates, the brokerage expects 46% CAGR in consolidated Profit After Tax (PAT) between FY26 and FY28, indicating confidence in Jio Financial's long-term growth strategy.

Key Highlights

Share Price Gain: Nearly 6%

Net Profit: ₹830.25 crore (up 155.73%)

Revenue: ₹2,004.47 crore (up 227.28%)

Brokerage Rating: Buy

Target Price: ₹315

Potential Upside: Around 34%

Key Growth Driver: Jio Credit AUM crosses ₹300 billion

Jio Financial's impressive earnings, expanding financial services portfolio, and optimistic brokerage outlook have strengthened investor sentiment. While elevated operating expenses remain a short-term concern, analysts believe the company's diversified business model and aggressive expansion strategy position it well for sustained long-term growth.