Mumbai: Shares of Jio Financial Services Ltd rallied up to 6 per cent on Friday after the Reliance Group’s financial services arm reported a strong set of earnings for the first quarter of the financial year 2026–27. The sharp rise in the stock came after the company posted a significant increase in profit, driven by higher interest income, investment gains and steady business expansion.
Despite the post-results rally, the stock remains lower on a year-to-date basis, reflecting the pressure it has faced since the beginning of 2026.
Stock gains after strong quarterly earnings
Jio Financial Services opened at ₹247.50 on the National Stock Exchange (NSE), compared to its previous closing price of ₹235.65, before climbing to an intraday high of ₹249.95, representing a gain of nearly 6 per cent.
By mid-morning, the stock was trading around ₹246, outperforming the benchmark Nifty 50, which was trading with modest gains.
However, despite Friday’s rally, Jio Financial shares are still down 16.44 per cent so far this year, making 2026 its weakest annual performance since the company’s stock market listing in 2023. The stock has also underperformed the Nifty 50 index, which has declined around 7 per cent during the same period.
Net profit surges 156%
The positive market reaction followed the company’s financial results announced after market hours on Thursday.
Jio Financial Services reported a consolidated net profit of ₹830 crore for the quarter ended June 2026, compared to ₹325 crore in the corresponding quarter of the previous year, reflecting a 156 per cent year-on-year increase.
The growth was supported by improved performance across multiple business segments.
The company’s Net Interest Income (NII) rose 106 per cent year-on-year to ₹540 crore.
Meanwhile, other income increased by 306 per cent to ₹1,040 crore, aided by dividend income of ₹510 crore and investment income of ₹210 crore.
Capital infusion strengthens balance sheet
During the quarter, Jio Financial also received the second tranche of ₹5,934 crore from its promoter group.
This has taken the total capital infused into the company to ₹9,890 crore.
The company stated that an additional ₹6,000 crore is expected to be infused over the coming quarters, further strengthening its capital position to support future business expansion.
Lending business records steady growth
Brokerage firm Motilal Oswal Financial Services (MOFSL) said the company delivered a healthy quarterly performance, particularly highlighting the growth of Jio Credit.
According to the brokerage, the company’s assets under management (AUM) have crossed ₹30,000 crore, indicating strong growth in its lending business.
MOFSL also noted that the payments business has shown improving profitability, while the insurance and asset management businesses continue to gain traction.
However, the brokerage pointed out that operating expenses remain elevated because of continued investments in expanding existing businesses and developing new business verticals.
As a result, the brokerage marginally reduced its earnings estimates for FY27 and FY28 while maintaining a positive long-term outlook.
MOFSL has retained its ‘Buy’ recommendation on the stock with a target price of ₹315.
Technical indicators show improving momentum
Technical analysts believe the stock is approaching an important resistance level.
According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, Jio Financial has been consolidating between ₹227 and ₹247 over the past two months.
He noted that the stock is now trading close to the upper end of this range.
Technical indicators, including the Relative Strength Index (RSI) and Average Directional Index (ADX), suggest that buying momentum is improving.
Analysts said a decisive close above the ₹247–250 zone could trigger a breakout, potentially taking the stock towards ₹255–260.
However, failure to sustain above this resistance could result in the stock moving back into its earlier consolidation range, with immediate support seen around ₹235–230.
Conclusion
Jio Financial Services witnessed strong investor interest after reporting robust first-quarter earnings, supported by higher profitability, expanding lending operations and continued capital infusion. While analysts remain optimistic about the company’s long-term growth prospects, market participants will closely watch whether the stock can sustain its momentum above key technical resistance levels.