The company’s profit after tax (PAT) gained 156% to ₹830 crore in the June quarter from the previous year’s 325 crore. It was 205% more than the previous quarter’s ₹272 crore on a consolidated basis.
Its pre-provisioning operating profit (PPOP) increased to ₹505 crore, up 38% from the previous year’s 366 crore and 54% from ₹327 crore sequentially.
Net interest income (NII) or core income for the quarter increased to ₹544 crore in the first quarter, up 106% from ₹264 crore in the year-ago period and up 58% from the previous quarter’s ₹345 crore.
Its NBFC business’ gross assets under management (AUM) increased 163% to ₹30,667 crore in the June quarter. Meanwhile, its quarterly disbursements crossed ₹11,250 crore.
Its payments bank’s deposits increased 72% from the year-ago period.
Motilal Oswal Sees 34% upside
Brokerage firm Motilal Oswal has a “buy” rating on Jio Financial Services with a price target of ₹315 apiece, indicating an upside of 34%.
The brokerage said Jio Financial Services posted a healthy quarter, with Jio Credit scaling up as well as its AUM crossing 30,000 crore. Its other businesses have witnessed steady progress with improving profitability in the payments business and continued traction in its insurance and AMC franchises, Motilal Oswal said.
However, its operating expenses remained high due to the ongoing investments in incubating new businesses and scaling up existing operations, it added.
The brokerage has cut its FY27 and FY28 earnings per share (EPS) estimates by 4% and 6% respectively to factor in high opex due to investments in ongoing businesses.
The stock trades at an 1x estimated FY27 price-to-book value. Motilal Oswal said it models a consolidated PAT compound annual growth rate (CAGR) of 46% over FY26-28.
It said its sum-of-the-parts does not factor in valuation from businesses like insurance manufacturing, wealth management, broking and marketplace, which are still in their incubation phases.
Both the analysts who have coverage on Jio Financial Services, have a “buy” rating on the stock.
Stock reaction
Shares of Jio Financial Services are trading 3.8% higher on Friday at ₹244.41.
