Jio Financial Services Ltd. share price target

JFSL demonstrated healthy financial performance in Q4FY25 driven by the launch of innovative products, rising interest income and strategic expansion initiatives. These resulted in its customer base tripling to 2.31 million YoY. JFSL's comprehensive portfolio, including corporate and retail products, caters to diverse customer needs. Its expanding distribution network, including a 6x growth in...

Although JFSL has a strong long-term growth potential, we maintain a balanced stance on the back-drop of near-term pressures from scale-up of operations and ongoing investments. We value Jio Finance at 1.7x FY25 ABV, implying a target of INR 268 per share, providing an upside potential of 3.9%. We maintain our “HOLD” rating on the stock.

Net Interest Income (NII) for Q3FY25 was INR 2,050 Mn, marking a decline of 21.9% YoY, though it saw a 2.5% increase QoQ. Pre-Provision Operating Profit (PPOP) stood at INR 3,305 Mn, reflecting a 4.7% YoY growth driven by higher non-interest income.

Net Interest Income (NII) for Q2FY25 stood at INR 2,050 Mn, a growth of 10.2% YoY/ 26.7% QoQ. Pre-Provision Operating Profit (PPOP) was INR 3,388 Mn, a decline of 6.0% YoY but grew by 6.9% QoQ, led by higher dividend income.

Net Interest Income (NII) for Q1FY25 stood at INR 1,617 Mn, a decline of 15.6% YoY/ 42.4% QoQ on account of lower interest income.
Pre-Provision Operating Profit (PPOP) was INR 3,388 Mn, a decline of 6.0% YoY but grew by 6.9% QoQ, led by lower operating expenses.

Net Interest Income (NII) for Q4FY24 stood at INR 2,807 Mn, a growth of 4.3% QoQ while for FY24, NII stood at INR 9,275 Mn vs INR 383 Mn in FY23.
Pre-Provision Operating Profit (PPOP) was INR 3,169 Mn, which was flat on sequential basis. For FY24, PPOP stood at INR 18,444 Mn as against INR 448 Mn in FY23.

The NII for Q3FY24 stood at INR 2,691 Mn, a growth of 44.6% QoQ with zero finance costs. The operating income for the quarter declined by 31.9% owing to the absence of dividend income during the quarter.

The NII for Q3FY24 stood at INR 2,691Mn, a growth of 44.6% QoQ with zero finance costs. The operating income for the quarter declined by 31.9% owing to the absence of dividend income during the quarter.

Jio Financial Services Ltd., originally incorporated as Reliance Strategic Investments Private Ltd, is a systemically important non-deposit-taking Non-Banking Financial Company registered with the Reserve Bank of India. It is a holding company and will operate its financial services business through its consumer-facing subsidiaries namely Jio Finance Ltd (JFL), Jio Insurance Broking Ltd (JIBL), and Jio Payment Solutions Ltd (JPSL) and joint venture namely Jio Payments Bank Ltd (JPBL).

Multi-faceted business model backed by aggressive growth plans in lending, insurance broking and payments