Jio Financial Services’ Q2 Profit Rises 3% YoY To INR 689 Cr

Fintech company Jio Financial Services (JFS) posted a consolidated net profit of INR 689.07 Cr in the June-September quarter (Q2) of the financial year 2024-25 (FY25), an increase of 3.13% from INR 668.18 Cr in the year-ago quarter.

On a quarter-on-quarter (QoQ) basis, net profit surged 120.27% from INR 312.83 Cr in Q1 FY25.

Operating revenue rose over 14% to INR 693.50 Cr during the quarter under review from INR 608.04 Cr in Q2 FY24. On a QoQ basis, it surged 65.91% from INR 418 Cr.

Total expenses more than doubled to INR 146.07 Cr in the second quarter of FY25 from INR 71.43 Cr in the year-ago quarter. Total expenditure stood at INR 79.35 Cr in Q1 FY25.

Notably, JFS was carved out from Reliance Industries Ltd (RIL) and listed on the stock exchanges in August last year. The company offers a gamut of financial services like UPI payments, loans, insurance, among others.

Highlighting the progress of the JioFinance app, which was launched in beta phase in May this year, the company said it has now 6.5 Mn average monthly active users (MAUs). The company also launched a new version of the JioFinance app in October 2024. It was earlier embedded with the MyJio app in September.

In an investor presentation, the company said that it increased its stake in the Jio Payments App to 82.17% in August 2024. It also expanded its business correspondents network to 3,000, with plans for future expansion.

Recently, the company also got SEBI’s in-principle approval for its joint venture (JV) with BlackRock for starting a mutual fund business. 

Giving an update on the JV, the company informed that its product roadmap and go to market strategy is in advanced stages. Further, it said that the system deployment for tech platforms and infrastructure is on schedule. 

Jio Financial Services launched new products like loan against property, loan on securities, and term life insurance in September 2024. In August, it said it launched home loan – balance transfer, health insurance, salary accounts, and physical debit cards.

Notably, in July 2024, the company launched loans on mutual funds, home loan, and auto and two-wheeler Insurance, along with corporate lending services like term loan and working capital. 

The company said it now has a direct-to-customer (D2C) product portfolio of 24 insurance plans across four product categories – auto, two-wheeler, health and life. 

On the UPI front, the company informed that it has now enabled UPI International in France, UAE, Singapore, Bhutan, Sri Lanka and Nepal 

Recently, it was also reported that the company is in discussions with BlackRock to establish a private credit venture. The 50:50 partnership will aim to leverage the growing direct lending market in India, with plans to provide loans to a wide range of businesses – from large corporations to startups.

Shares of Jio Financial Services ended today’s trading session 0.4% higher at INR 330.55 on the BSE.