More Stories

Informist, Thursday, Apr. 17, 2025

By Aaryan Khanna

NEW DELHI – Jio Financial Services Ltd. eked out an on-year rise in its consolidated net profit in the March quarter, helped by a surge in the net gain on fair value changes. A fall in interest income and a sharp rise in expenses kept the bottom line in check, with the firm reporting a 13-fold increase in the impairment of its financial instruments.

The financial services holding company posted a profit after tax of INR 3.16 billion in Jan-Mar, against INR 3.11 billion a year ago. Sequentially, the bottom line was up over 7%. The net gain on the fair value of the company's assets was about 36% of the total revenue from operations in the reporting quarter, and totalled INR 1.78 billion, up about 67% on year. 

This helped pump up the total income, which rose about 24% to INR 5.18 billion. Interest income, which comprises the bulk of the firm's revenue, was a tad lower from the year-ago period even as it surged sequentially. With expenses rising almost 64% on year to INR 1.69 billion, the bottom line growth was miniscule.

The impairment on financial instruments rose to INR 239 million in Jan-Mar from INR 18 million a year ago, becoming a material part of the expenses. Both employee benefit costs and other expenses rose over 35% on year each.

The results were similarly weak for the financial year ended March. Despite a surge in the standalone bottom line, Jio Financial's consolidated net profit was up around 0.5% on year at INR 16.13 billion. Total revenue from operations grew 10% on year to INR 20.43 billion in 2024-25 (Apr-Mar). While declaring its Jan-Mar results, the company's board also recommended a dividend of INR 0.5 per share.

SUBSIDIARIES

Jio Financial's subsidiary, Jio Finance Ltd., reported assets under management of INR 100.53 billion as of Mar. 31, up sharply from INR 41.99 billion on Dec. 31. Additionally, the company's payments bank saw a 22% on-quarter increase in current account and savings account customers, reaching 2.31 million in FY25 and more than tripling on year.

Its JioFinance app, which was launched in Apr-Jun last year, has received its third-party application provider licence and integrated with the MyJio app in Jul-Sept, the company said in an investor presentation. The aim of the JioFinance app was to serve core financial needs through its payments bank, investments, secured lending and insurance broking units, Jio Financial said. The holding company, which had 8.0 million average monthly active users in FY25 across all its digital platforms, said its consolidated net worth was INR 1.24 trillion as of Mar. 31, falling over 11% on year.

As for its joint ventures with US giant BlackRock Inc., Jio Financial said the asset management company arm had filed an application for financial approval, with senior leadership and core business teams in place. The development of infrastructure and a unified investment platform had also been completed. The asset management company was ready to launch with a defined product roadmap and go-to-market strategy, the investor presentation said.

Meanwhile, Jio BlackRock Investment Advisers Pvt. Ltd. had been incorporated in September as the wealth management arm of the joint venture, while Jio BlackRock Broking Pvt. Ltd. had been set up in January to offer broking services. Both firms had applied for licences in their respective areas in March, Jio Financial said. The recruitment of senior management in these verticals was in progress, it said.

Jio Financial Services is a holding company of multiple financial services businesses, listed in August 2023. Jio Finance was established in 2006 as Reliance Retail Finance Ltd., a non-deposit-taking non-banking finance company. The company announced its financial results post market hours. On Thursday, shares of Jio Financial closed 1.7% higher at INR 246.47 on the National Stock Exchange.  End

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.