Jio Financial shares slide 4% after Q4 earnings; what Jefferies sees next

Shares of Jio Financial Services fell sharply in early trade on Monday, April 20. The stock slipped as much as 4 per cent to an intraday low of Rs 234.50. The decline came after the company reported a drop in quarterly profit.

Q4 earnings miss expectations

The company reported a consolidated net profit of Rs 272.22 crore for Q4 FY26. This is a decline of 13.88 per cent from Rs 316.11 crore reported in the same quarter last year. The fall in profit was largely due to a sharp rise in expenses.

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Total income, however, showed strong growth. It nearly doubled to Rs 1,020 crore in the March quarter, compared to Rs 518 crore a year ago.

At the same time, total expenditure surged to Rs 720 crore from Rs 169 crore in the year-ago period. This increase in costs impacted overall profitability.

The company said in its statement that “geopolitics-led volatility impacted treasury income on a higher capital base.”

Stock performance remains weak

The stock has been under pressure in recent months. It has declined 2.2 per cent over the past five days. Over the last six months, it has fallen 24 per cent. On a year-to-date basis, the stock is down 20 per cent.

The company’s market capitalisation stands at around Rs 1.50 lakh crore, as per exchange data.

Full-year performance stays flat

For the full FY26, the company reported a net profit of Rs 1,561 crore. This is slightly lower than Rs 1,613 crore reported in FY25. This indicates muted growth on an annual basis.

Payments bank sees strong growth

The company’s payments arm showed strong traction during the quarter. Jio Payments Bank reported an 11-fold jump in total income to Rs 87 crore in Q4 FY26.

The Current Account and Savings Account (CASA) customer base grew 61 per cent year-on-year to 3.7 million. Average deposit per customer rose 20 per cent to Rs 1,439.

The bank’s toll processing operations are now live across 18 toll plazas in eight states.

Brokerage view remains steady

According to Jefferies, consolidated profit stood at around Rs 2.7 billion, down 14 per cent year-on-year. However, net income from operations rose 198 per cent year-on-year.

Lending assets under management (AUM) increased 35 per cent quarter-on-quarter to Rs 257 billion. The JioFinance app user base also expanded to 23 million.

The brokerage said the company is building its business at a steady pace and sees no major risk to its financials. It also highlighted that the company is exploring a life insurance and general insurance venture with Allianz.

Dividend announced

The board has recommended a final dividend of Rs 0.60 per equity share with a face value of Rs 10 for FY26.

The company said the record date and payment timeline will be announced after shareholder approval at the annual general meeting.

Jio Financial Services share price

Jio Financial Services shares closed at Rs 236.60 on the NSE, down Rs 7.26 or 2.98 per cent today.