Jio Financial Services Limited has announced the incorporation of a wholly owned subsidiary, Jio Alternative Investment Manager Limited (JAIML), on January 23, 2026. The subsidiary has been established with its registered office in Mumbai and will serve as an investment manager for the Alternative Investment Fund that the company plans to set up, subject to regulatory approvals.

Investment Details and Structure

The financial structure of the new subsidiary reflects a strategic investment approach by Jio Financial Services. The company will make an initial investment to establish JAIML's equity base and operational foundation.

Regulatory Framework and Compliance

JAIML will operate under the SEBI (Alternative Investment Funds) Regulations 2012 framework. The incorporation process was completed efficiently, with the Certificate of Incorporation received from the Ministry of Corporate Affairs via email at around 5.45 p.m. (IST) on January 23, 2026. No governmental or regulatory approvals are required for this investment, streamlining the establishment process.

Transaction Characteristics

The incorporation represents an independent business expansion initiative by Jio Financial Services. The transaction does not fall within the scope of related party transactions, and none of the company's promoter, promoter group, or group companies have any interest in this transaction. This structure ensures clear governance and operational independence for the new subsidiary.

Strategic Purpose

The establishment of JAIML positions Jio Financial Services to enter the alternative investment management space. The subsidiary will function as the investment manager for the Alternative Investment Fund that the parent company intends to establish, pending necessary regulatory approvals from relevant authorities.

Shares of Jio Financial Services are likely to be in focus following the company's Q3FY26 results, which showed a 9% year-on-year decline in net profit despite strong revenue growth. The company reported a consolidated profit of ₹269.00 crore for the quarter ended December 31, compared with ₹295.00 crore in the same period last year, as total income more than doubled supported by robust traction across lending, payments and asset management businesses.

Quarterly Financial Performance

The company's Q3FY26 performance demonstrated strong revenue expansion with total income rising significantly, though profitability declined on both year-on-year and sequential basis due to sharp increase in operational expenses.

Revenue from operations more than doubled to ₹901.00 crore, marking 106% year-on-year growth. Interest income surged 140% year-on-year to ₹504.00 crore, driven by expansion of the lending portfolio, while fee and commission income jumped 394% to ₹182.00 crore. However, expenses rose sharply to ₹566.00 crore from ₹131.00 crore in the year-ago period, representing a 333% increase.

Lending Business Expansion

The company's NBFC operations continued to scale rapidly, demonstrating exceptional growth across key metrics. Assets under management climbed 4.5 times year-on-year and 29% sequentially to ₹19,049.00 crore.

Gross disbursements during the quarter stood at ₹8,615.00 crore, nearly doubling from a year earlier. The lending business maintained strong momentum with net interest income surging 166% year-on-year to ₹165.00 crore, while pre-provisioning operating profit jumped 130% to ₹99.00 crore.

Payments and Banking Services Growth

At Jio Payments Bank, total income rose ten-fold to ₹61.00 crore, driven by sharp increase in transaction throughput. The payments ecosystem saw strong momentum across all key parameters.

Transaction processing volume at Jio Payment Solutions rose 2.6 times year-on-year to ₹16,315.00 crore, with gross fee and commission income increasing 4.6 times to ₹96.00 crore. Deposits stood at ₹507.00 crore as of December 31, up 94% year-on-year, while the customer base expanded to 3.2 million.

Asset Management Performance

The asset management business, operated through the Jio-BlackRock joint venture, maintained strong traction with assets under management of ₹14,972.00 crore across 10 mutual fund schemes, serving a retail investor base of around one million.

The company noted that a significant share of inflows came from beyond the top 30 cities, reflecting rising participation from first-time mutual fund investors. Over 51% of investors maintained active SIPs, demonstrating strong customer engagement across the platform.