Mukesh Ambani Stock: Is It a Good Time to Buy Jio Financial Shares?

Synopsis: Shares of Jio Financial Services may remain on investor radar after Motilal Oswal maintained a Buy rating with a target price of ₹320. While the stock has seen pressure after results, brokerages continue to focus on the company’s long-term scale-up story across lending, asset management, and digital finance.

The newest listed stock of the Reliance Group has stayed in focus after domestic brokerage Motilal Oswal reiterated a Buy rating on the stock with a target price of ₹320, implying upside potential from current levels. The call comes after the company reported its latest quarterly earnings, where profitability remained subdued due to higher operating expenses and investments in expansion initiatives.

Although the stock reacted weakly post results, markets often differentiate between near-term earnings pressure and long-term business buildout, especially in financial companies still in expansion mode.

With a market capitalisation of ₹1,62,239  crores, the shares of Jio Financial Services were trading at ₹246 a piece in today’s market session, down by 1.17% from its previous day close of ₹248 a piece. It has delivered a negative return of 5.02% in one year.

What Supports the Brokerage’s Upside View?

Motilal Oswal’s positive stance is largely based on the expectation that Jio Financial Services is still in the early stages of building a large-scale financial platform. The brokerage believes the company can deliver strong growth in assets under management, lending disbursements, and earnings between FY26 and FY28 as newer businesses mature.

A key reason behind the optimism is the company’s rapid lending scale-up, with AUM rising around 35% quarter-on-quarter to ₹25,700 crore. Motilal Oswal also expects future growth to be supported by expansion across lending, asset management, digital. 

Consolidated Net Interest Income (NII) also increased by 1.49x to ₹202 crores for the latest Quarter 4’FY26, while disbursements remained strong. It 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.

Jio Financial centres on its ecosystem-led operating advantage, leveraging Jio’s subscriber base of over 500 million and the extensive retail footprint of the Reliance Group, following which it benefits from a lower-cost entry into the daily digital lives of nearly half of India’s population

What Could Drive the Future Outlook

Brokerages remain focused on Jio Financial Services’ long-term opportunity rather than one quarter’s earnings movement. The company appears to be building multiple growth engines across lending, payments, insurance, and wealth management, which could shape the next phase of its business.

In lending, Jio Credit Limited reported a 49% year-on-year rise in quarterly disbursements to ₹10,629 crore, signalling rapid scale-up in retail and secured credit products. 

In digital finance, the company recently unveiled an AI-native Intelligent Finance Marketplace with conversational and hyper-personalised features, which has already seen around 1.7 million downloads since launch.

The payments ecosystem is also expanding, with Jio Payment Solutions receiving an RBI Payment Aggregator-Cross Border licence for global settlements, while Jio Payments Bank launched UPI-based cash withdrawal services.

In wealth and insurance, the company’s joint venture with Allianz Group received regulatory approval for a reinsurance business, while JioBlackRock Asset Management secured in-principle approval to establish a retail Fund Management Entity in GIFT City.

Key Insights for Investors

Jio Financial Services appears to be in an investment phase where near-term profitability may remain affected by expansion costs, but the broader focus is on building a diversified financial platform. The company is simultaneously scaling lending, payments, insurance, and asset management businesses, which could create multiple long-term revenue streams if executed well.

Markets are likely to track how quickly customer growth, disbursements, and new ventures translate into sustainable earnings. For now, the key monitorables may remain profitability trends, pace of execution, competitive intensity, and the company’s ability to leverage the wider Reliance ecosystem for scale.

Jio Financial Services Limited is a diversified financial services company focused on building a digital-first ecosystem across lending, payments, insurance, asset management, and wealth products. Backed by the broader Reliance Group ecosystem, the company aims to leverage technology, data, and distribution reach to offer integrated financial solutions at scale.

Its business portfolio includes consumer and business lending through Jio Credit, payments and banking services through Jio Payments entities, insurance partnerships, and asset management through its joint venture with BlackRock. 

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