Jio Financial Services Share Price Target: Motila Oswal has initiated coverage on Jio Financial Services (JIOFIN) with Buy rating and expects the company to report a consolidated PAT CAGR of 48 per cent over FY26-28. The brokerage has set a target price of Rs 320 on the stock.
In a research report, Motilal Oswal said that Jio Financial Services is being architected as a diversified, technology-led financial services platform, aiming to operate across lending, payments, asset management, wealth management, insurance manufacturing and broking, and other digital financial services, while leveraging the unparalleled distribution and data ecosystem of the Reliance group.
The core investment thesis for JIOFIN centers on its ecosystem-led operating advantage, leveraging Jio’s subscriber base of over 500m and the extensive retail footprint of the Reliance Group.
Unlike traditional NBFCs that face high customer acquisition costs, JIOFIN benefits from a lower-cost entry into the daily digital lives of nearly half of India's population.
"This captive audience enables hyper-personalized credit underwriting through proprietary AI models that analyze data from telecom and retail behavior, providing a unique risk assessment edge, while operating within regulatory guardrails," the brokerage said.
JIOFIN’s ‘Reliance Pedigree’ serves as more than just a brand; it provides a structural capital advantage. This was reflected in the recent preferential issue of warrants to the promoter group, which will infuse ~INR157b of equity capital, strengthening the company’s balance sheet and supporting long-term growth.
The company enjoys a structurally lower cost of borrowings, with cost of funds (CoF) averaging ~6.99% as of Dec’25, supported by its AAA credit rating and diversified funding access.
JIOFIN’s diverse product suite is designed to address every stage of a consumer’s financial journey. The lending business, Jio Credit, will remain the primary growth engine, with AUM surging ~5x YoY to over Rs 190b as of Dec’25.
The Payments Bank and payments solution ecosystem will act as a critical acquisition layer, processing trillions in transaction volume and doubling its customer base, thereby providing a steady stream of data to cross-sell higher margin products. Moreover, the company’s wealth and insurance verticals are preparing for a nationwide rollout, targeting Tier 2 and Tier 3 cities, where digital penetration is high but formal credit remains scarce.
JIOFIN is a structural play on the financialization of India’s digital economy. By successfully shifting its revenue mix, where core business income now accounts for over ~55% of total earnings, JIOFIN has proven its ability to pivot to an operational powerhouse.
"Its primary strength lies in its triple-threat advantage: an industry leading liability franchise, a low-cost customer acquisition funnel through its Jio telecom and retail ecosystem, and global financial product manufacturing expertise via the BlackRock and Allianz joint ventures," Motilal Oswal said.
