Earnings Season Wraps: Over 1,500 Companies Report December Quarter Results
The December quarter earnings season is drawing to a close, with more than 1,500 companies having announced their financial results so far. In the financial services sector, two prominent players—Bajaj Finance and Jio Financial Services (JFSL)—have released their Q3 FY26 numbers, offering investors distinct narratives and opportunities.
Contrasting Investment Propositions in Financial Services
According to market experts, these two companies represent fundamentally different investment propositions, reflecting varying stages in the financial services lifecycle and catering to separate investor profiles. Seema Srivastava, Senior Research Analyst at SMC Global Securities, highlighted this divergence, noting that Bajaj Finance exemplifies a proven compounder, while JFSL offers a platform-scale optionality play still in its growth phase.
Bajaj Finance Q3 FY26 Results: Steady Growth Amid Optical Profit Decline
Bajaj Finance reported a consolidated net profit of ₹4,066 crore for the third quarter, marking a 5.6% year-on-year decline from ₹4,308 crore in the same period last year. However, this decrease was largely attributed to accelerated Expected Credit Loss (ECL) provisioning and one-time labour code charges.
Key financial highlights for Bajaj Finance include:
- Revenue from operations: Surged 18.2% YoY to ₹15,965 crore from ₹13,277 crore.
- Net Interest Income (NII): Climbed to ₹11,318 crore, compared with ₹9,383 crore a year earlier.
- Asset Under Management (AUM): Grew 22% YoY to ₹4.84 lakh crore from ₹3.98 lakh crore.
- New loan disbursements: Increased 15% YoY to 13.90 million from 12.06 million.
"Bajaj Finance continues to demonstrate its credentials as a proven compounder," Srivastava observed. "The Q3 results reaffirm the strength of its franchise with 22% AUM growth, steady customer additions, robust NII expansion, and stable asset quality. While reported profit declined optically, underlying PAT grew 23%, highlighting strong core momentum."
Jio Financial Services Q3 FY26 Results: Rapid Scaling with Modest Profitability
Jio Financial Services delivered a mixed performance in the December quarter, with strong growth in core operating income offset by weaker profitability metrics. The company reported a net profit of ₹269 crore, representing a 9% year-on-year decline from ₹295 crore in the corresponding quarter last year.
Key financial highlights for Jio Financial Services include:
- Revenue from operations: More than doubled to ₹901 crore, marking a robust 106% increase from ₹438 crore a year earlier.
- Interest income: Jumped 140% year-on-year to ₹504 crore, driven by expansion of the lending portfolio.
- Asset management business: AMC assets under management reached ₹14,972 crore across 10 mutual fund schemes, supported by a retail investor base of approximately one million.
"JFSL represents a platform-scale optionality play, still in its investment phase but scaling rapidly across NBFC, AMC, payments, and insurance distribution," Srivastava explained. "Q3 FY26 showcased sharp YoY growth in income, AUM, and transaction volumes, though profitability remains modest due to reinvestment and softer associate income. Leveraging Reliance's ecosystem, data, and distribution reach, JFSL is building multiple financial verticals that could evolve into a diversified financial powerhouse over time."
Which Stock to Buy Post Q3 Results? Expert Perspectives
The market expert believes that Bajaj Finance appeals to conservative investors focused on steady compounding, while JFSL suits those willing to embrace volatility for potentially outsized ecosystem-led returns.
Meanwhile, Anshul Jain, Head of Research at Lakshmishree, provided technical analysis, noting that Bajaj Finance clearly stands out on price action. "The stock has crossed a major resistance near ₹975, decisively breaking the earlier lower-high lower-low structure that had capped upside attempts," Jain stated.
He added: "This shift marks a transition back into a bullish trajectory on the daily chart. The breakout has come with improving participation, indicating genuine accumulation rather than short covering. Structure-wise, higher lows are now forming, and momentum indicators have turned supportive, reinforcing trend strength across short-term timeframes. As long as the stock sustains above ₹975, the risk–reward remains favorable for continuation. A clean hold above this level can drive a follow-through move toward the ₹1,020–1,025 zone, while a slip back below ₹975 would act as the near-term invalidation for the bullish setup."
Investment Considerations and Disclaimer
Investors should carefully consider their risk tolerance and investment horizon when evaluating these contrasting opportunities. Bajaj Finance offers established growth and stability, while Jio Financial Services presents emerging potential within a powerful ecosystem.
Disclaimer: This analysis is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies. Investors are advised to consult with certified experts before making any investment decisions.
