Lending AUM Surges 154%, Operating Profit Jumps 85%

JIOFIN Jio Financial Services: Lending AUM Surges 154%, Operating Profit Jumps 85% **JIOFIN** Jio Financial Services reported strong operating growth in Q2 FY27, with consolidated total income (excluding dividend income) increasing 132% YoY to ₹1,699 crore. **Why it matters:** Pre-Provisioning Operating Profit (PPOP) rose 85% to ₹574 crore, while Jio Credit's net profit increased 140% to ₹120 crore. The lending business continued its strong expansion, with Assets Under Management (AUM) growing 154% to ₹37,320 crore. Jio BlackRock AMC's AUM increased 57% to ₹22,746 crore. The payments business also recorded growth, while Bank of America agreed to acquire up to 49.9% in Jio Credit, subject to regulatory approvals. **My view:** Rapid lending growth, the BlackRock partnership and expansion across financial services create significant long-term opportunities. However, building sustainable profitability remains important. **What to watch:** Loan growth, asset quality, NIM, credit costs, AMC AUM, payments business and Bank of America investment. **Stance:** Jio Financial has strong growth potential in India's financial services market. Execution, profitability and valuation remain key factors. **Disclosure:** I am a SEBI Registered Research Analyst. This content is for educational and informational purposes only and is not investment advice or a recommendation to buy or sell any security. Investments are subject to market risks.