Jio Financial Shares Fall 3% as Q3 Profit Remains Flat and Digital Growth
Jio Financial Services Ltd: Overview
Jio Financial Services Ltd (JFSL), a strategic subsidiary of Reliance Industries Ltd, operates as a diversified financial services company, leveraging technology and innovation to redefine financial inclusion in India. JFSL’s offerings span consumer and merchant lending, asset management, insurance, and digital payments, making it a comprehensive player in the financial ecosystem. The company focuses on leveraging Reliance’s vast consumer base and digital ecosystem to deliver tailored financial solutions at scale. With its extensive reach, advanced data analytics, and partnerships, JFSL is poised to disrupt traditional financial service models, particularly in underpenetrated segments of the Indian market. India’s financial services industry is undergoing a transformative phase, driven by rising digital adoption, favourable regulatory changes, and increasing demand for inclusive financial solutions. The industry spans banking, insurance, asset management, and fintech, collectively contributing significantly to India’s GDP. The digital lending market is projected to grow at a CAGR of over 30% due to increasing consumer demand and the rising popularity of Buy Now Pay Later (BNPL) schemes. Similarly, the insurance and asset management sectors are poised for robust growth, fueled by increasing awareness, urbanization, and disposable incomes. Fintech is a key driver, with India emerging as one of the world’s largest fintech ecosystems. Regulatory support for digital banking, UPI adoption, and financial inclusion efforts further strengthen the industry’s prospects. JFSL is well-positioned to capitalize on these trends, leveraging its technological expertise and vast ecosystem to redefine financial services in India.
Latest Stock News
Jio Financial Services shares slipped nearly 3% after the company reported a flat net profit for Q3 FY25 compared to the previous year. Despite steady profits, the company showcased significant growth in its AUM and continued expansion in digital and financial services. Jio Financial also seeks a TPAP license for its JioFinance app to enhance its offerings.
Business Segments
- Lending & Leasing: The initial focus is on offering secured loans aimed at both salaried and self-employed individuals, taking into account their risk profiles and business dynamics. Its product suite includes loan against mutual funds, home loan, with plans to offer loan against securities, loan against property and other secured lending products. It also provides a spectrum of financing options designed to support the operations of MSMEs and corporates. The offerings include working capital loans and supply chain finance.
- Insurance: In the insurance domain, JFSL is set to offer both life and non-life products, focusing on affordability and accessibility. The use of digital platforms for policy issuance, claims processing, and customer support ensures a smooth experience for consumers, particularly in underpenetrated rural and semi-urban markets.
- Payments: The Payments Bank has successfully operationalised liability offerings of saving account, current accounts and prepaid instruments served through both self-service and assisted channel. The services include savings account, debit card, current account, wallet, and a host of consumer payment solutions such as UPI, Aadhaar Enabled Payment System, remittances etc. Customers are acquired and serviced digitally and through a network of business correspondents (BC).
- Investments: JFSL aims to simplify wealth management by offering mutual funds, systematic investment plans (SIPs), and other investment products through a user-friendly digital interface. By democratizing access to financial instruments, it seeks to empower individuals to achieve their financial goals.
Subsidiary Information
- Jio Finance Ltd: Jio Finance Limited (JFL), formerly Reliance Retail Finance Limited, is a wholly-owned subsidiary of JFSL and is registered with the RBI as a systemically important non-deposit taking NBFC. With a digital first approach, JFL is primarily engaged in Consumer Lending, and Corporate and MSME lending.
- Jio Payments Bank Ltd: Jio Payments Bank Limited, a joint venture between the Company and State Bank of India with shareholding of 77.25%:22.75% holds a payments bank license issued by RBI, to provide digital banking solutions to consumers and small businesses.
- Jio Payment Solutions Ltd: Jio Payment Solutions Limited (JPSL), formerly Reliance Payment Solutions Limited, has an in-principle approval from the RBI to operate as a Payment Aggregator (PA) to capitalise on the emerging opportunities in the fast-expanding payments industry. JPSL aims to drive its business by predominantly using the Payment Gateway (PG) and Unified Payments Interface (UPI) for both large enterprises and small businesses/merchants. JPSL has built partnerships and integrated with multiple banks and financial institutions with a clear focus on building cost efficiencies and having a sustained path to profitability.
- Jio Insurance Broking Ltd: Jio Insurance Broking Limited (JIBL), formerly Reliance Retail Insurance Broking Limited, obtained its direct broker licence from the Insurance Regulatory Development Authority of India (IRDAI) in 2007. JIBL operates in a sweet spot, because, with significant underinsurance, India presents a substantial opportunity for growth. JIBL has emerged as a key player by distributing life, non-life, and health insurance products digitally and has partnerships with 31 leading insurance providers, across public and private sector.
- Jio BlackRock JV: JFSL took a significant stride into the asset management sector by forming a joint venture with BlackRock Inc. Group, the world’s largest asset manager. The strategic partnership, a 50:50 JV, is aimed to leverage JFSL’s extensive market reach and BlackRock’s investment acumen to democratise consumer access to top-tier investment solutions across India.
Q3 FY25 & Business Highlights
- Revenue of ₹438 crore in Q3 FY25 up by 5.98% YoY from ₹414 crore in Q3 FY24.
- EBITDA of ₹313 crore in this quarter at a margin of 71% compared to 77% in Q3 FY24.
- Profit of ₹295 crore in this quarter compared to a ₹294 crore profit in Q3 FY24.
- The Lending and Leasing AUM is of ₹4199 cr as on December 31, 2024 compared to ₹1206 cr in Q2 FY25.
- The CASA customers count has reached 1.89 million customers and had direct integrations with 10 banks to offer net banking and cards services.
- Asset Management company filled application for final approval and senior leadership team of wealth management company is in progress.
Financial Summary
| INR Cr. | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 414 | 438 | 45 | 1855 |
| Expenses | 94 | 125 | 6 | 296 |
| EBITDA | 320 | 313 | 39 | 1559 |
| OPM | 77% | 71% | 88% | 84% |
| Net Profit | 294 | 295 | 31 | 1605 |
| NPM | 71.1% | 67.3% | 68.9% | 86.5% |
| EPS | 0.46 | 0.46 | – | 2.53 |