Jio Financial Services shares in focus after Q4 profit rises 2%, revenue jumps 18% YoY

Jio Financial Services shares will be in focus on Monday after the company reported a 2% year-on-year (YoY) rise in consolidated net profit to Rs 316 crore for the fourth quarter of FY25, compared to Rs 311 crore in the same period last year.

Revenue from operations rose 18% YoY to Rs 493 crore from Rs 418 crore a year ago. On a sequential basis, revenue grew 13%, while profit after tax increased 7%.

Interest income during the fourth quarter fell marginally to Rs 276 crore in the January-March 2024 period, while the income from fees and commissions improved to Rs 39 crore.

In the lending and leasing department, Jio Finance's AUM stood at Rs 10,053 crore versus a meagre Rs 173 crore a year ago.

The segment's physical presence expanded to 10 Tier-1 cities and the company also increased partnerships with wealth management companies and banks for LAS and LAMF.

In the payment's business, Jio Payments Bank customer base expanded 3x YoY to 2.31 million. The Bank has a CASA plus wallet of Rs 295 crore, which is also up 3x YoY.

Meanwhile, Jio Payment Solutions received an online payment aggregator license during the fourth quarter.

The insurance broking expanded supply with 34 insurance partners and 61 direct-to-customer plans. The company said it is refining customer journeys with a digital DIY platform.

Jio Financial Services, formerly Reliance Strategic Investments, is a Mumbai-based financial services company and a subsidiary of Reliance Industries. The company offers a range of financial products, including lending, insurance broking, and digital payment solutions.

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Jio Financial Services shares price target

As per Trendlyne data, the average target price of the stock is Rs 317, which indicates an upside of 28% from the current market prices. The consensus recommendation from 2 analysts for the stock is a 'Hold'.

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Jio Financial Services shares price performance

In the previous session, Jio Financial Services shares closed 1.7% higher at Rs 246.4. The stock has declined 25% over the past six months but gained 12% over the last one month. The company’s market capitalisation stands at Rs 1,56,573 crore.

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