Motilal Oswal has initiated coverage on Jio Financial Services with a 'buy' rating and a price target of ₹320 per share, representing a 36% upside potential from current market levels. According to Moneycontrol, this marks the second analyst to have initiated coverage on the stock, with the latest research report dated March 09, 2026. The brokerage's positive stance comes as shares rallied as much as 3% to their day's high of ₹243 on Wednesday following the coverage announcement. The company, part of Mukesh Ambani's Reliance empire, has seen a weak run with shares falling 11% in the last 1 month and about 22% in the last 6 months.
Motilal Oswal has projected Jio Financial Services' consolidated Profit After Tax (PAT) to grow at a Compounded Annual Growth Rate (CAGR) of 48% over financial year 2026-2028. As reported by Moneycontrol, the brokerage noted that while current valuations reflect part of the medium-term growth potential, they do not fully capture the scale opportunity across lending, asset, and wealth management, and digital financial services as these businesses transition from incubation to meaningful profitability. The latest research report emphasizes that the SoTP (Sum of the Parts) valuation does not factor in valuation from businesses that are still in their incubation phases. The company's 'Reliance Pedigree' serves as more than just a brand, providing a structural capital advantage, which was reflected in the recent preferential issue of warrants to the promoter group, which will infuse ₹15,700 crore of equity capital, strengthening the company's balance sheet and supporting long-term growth.
According to the Motilal Oswal analysis reported by Moneycontrol, Jio Financial Services is being architected as a diversified, technology-led financial services platform operating across lending, payments, asset management, wealth management, insurance manufacturing and broking, along with other digital financial services. The company leverages Jio's subscriber base of over 500 million and the extensive retail footprint of the Reliance Group, providing a lower-cost entry into the daily digital lives of nearly half of India's population compared to traditional NBFCs that face high customer acquisition costs. The core investment thesis centers on the ecosystem-led operating advantage, with the company benefiting from a captive audience that 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.
As reported by Moneycontrol, Jio Financial Services operates through four key pillars of growth: Jio Credit has entered a strong phase of AUM expansion, supported by a secured-focused portfolio mix and swift execution, with growth driven by rapid scaling of secured retail products such as home loans, loan against property (LAP), and loan against securities (LAS). Jio Payments Bank operates through a network of around 2.87 lakh BC touchpoints as of December 2025, including both owned and corporate BCs, facilitating account opening and cash-based transactions. The bank has built a customer base of 3.2 million accounts with deposits at ₹5.1 billion as of December 2025. Jio-BlackRock AMC has onboarded over one million investors within its first year of operations, with around 18% being first-time investors, reflecting its ability to tap into the next wave of retail financialisation. Jio Insurance Broking is well positioned to benefit from India's structurally underpenetrated insurance market, where protection gaps remain significant across life, health, and SME segments despite increasing digital adoption.
As reported by Moneycontrol, shares of Jio Financial Services rallied as much as 3% to their day's high of ₹243 on the BSE on Wednesday after Motilal Oswal initiated coverage with a 'Buy' call and a target price of ₹320 per share. However, the stock has declined 11% in the past month and about 22% in the last 6 months, indicating recent volatility in the stock price despite the positive analyst coverage. According to Moneycontrol, while near-term profitability is expected to remain muted due to the incubation phase of several businesses, the foundation built across technology, partnerships, and distribution provides a strong platform for scalable growth over the medium to long term.
