Jio Financial Shares Jump 6% After Q1 Profit More Than Doubles on Broad-Based Business Growth

Mumbai, July 17: Jio Financial Services share price surged as much as 6% on Friday after the non-banking financial company (NBFC) reported a more than two-fold jump in June-quarter profit, driven by strong growth across its lending, payments, insurance and asset management businesses. 

The stock climbed as much as 6% in early trade before trimming some gains to trade 4% higher at ₹245. The rally made Jio Financial one of the top gainers on the Nifty 50 index, as investors cheered the company’s accelerating business momentum and improving profitability.  

Profit more than doubles 

Jio Financial reported a consolidated net profit of ₹830 crore for the quarter ended June, compared with ₹325 crore a year earlier, marking a more than 155% year-on-year increase. 

The strong earnings were underpinned by broad-based growth across its financial services portfolio, with the company continuing to scale its lending, digital payments, insurance and wealth management businesses. Revenue growth was supported by higher activity across multiple business segments.  

Lending business gathers pace 

One of the biggest contributors to the strong quarterly performance was Jio Credit, the company’s lending arm. 

Stock jumped after results as investors and brokers cheered broad-based growth. Source: NSE 

Gross assets under management (AUM) at Jio Credit crossed the ₹30,000-crore mark during the quarter, reflecting rapid expansion in the company’s retail lending operations. The business has been steadily increasing its presence in personal loans, loans against securities and other digital lending products as it seeks to leverage the wider Jio ecosystem. 

The company has also continued expanding its customer base through its digital platform, helping deepen cross-selling opportunities across lending, payments and insurance.  

Payments, insurance and AMC businesses strengthen 

Apart from lending, Jio Financial continued to strengthen its presence across other financial services verticals. 

Its payments business showed improved profitability, while its insurance operations continued to gain traction. The company’s asset management venture with BlackRock has also been scaling rapidly, positioning it to compete in India’s fast-growing mutual fund and investment management industry. 

The diversified growth across businesses has helped reduce dependence on any single revenue stream, giving investors greater confidence in the company’s long-term growth strategy.  

Brokerages remain optimistic 

Brokerages remained upbeat following the results, highlighting the company’s execution across multiple businesses. 

Analysts said execution remained strong across all business segments, with payments seeing improving profitability while insurance and asset management businesses continued to build scale. The brokerages expect assets under management to grow at a compound annual growth rate of around 85% between FY26 and FY28, while profit is projected to grow at about 145% annually over the same period.  

Analysts also pointed to sustained customer growth and continued progress in insurance operations as key positives supporting the company’s long-term outlook.  

Since being spun off from Reliance Industries and listed separately in 2023, Jio Financial has steadily expanded beyond payments into lending, insurance, wealth management and asset management. The company has been investing aggressively to build a diversified financial services platform that leverages the vast customer base of the broader Jio ecosystem. 

With earnings growth accelerating and multiple businesses gaining scale simultaneously, investors will closely watch whether Jio Financial can sustain its rapid expansion while improving profitability over the coming quarters. 

Source

•  https://www.nseindia.com/get-quote/equity/JIOFIN/Jio-Financial-Services-Limited