Jio Financial Services’ Q3 Profit Flat At INR 295 Cr

Fintech company Jio Financial Services (JFS) posted a consolidated net profit of INR 294.78 Cr in the third quarter of the financial year 2024-25 (Q3 FY25), a mere 0.3% increase from INR 293.82 Cr in the year-ago quarter. 

Sequentially, net profit plunged 57% from INR 689.07 Cr. 

JFS’ revenue from operations rose 5.7% to INR 438.35 Cr during the quarter under review from INR 414.33 Cr in Q3 FY24. On a quarter-on-quarter basis, the number declined 36.8% from INR 693.50 Cr. 

Including other income of INR 10.54 Cr, the fintech company’s total revenue for Q3 FY25 stood at INR 448.89 Cr. 

Total expenses went up 32.1% to INR 130.75 Cr in Q3 FY25 from INR 98.95 Cr in the year-ago quarter. However, expenses slid 32.3% on a QoQ basis from INR 146.07 Cr. 

The company’s impairment expenses surged to INR 12.3 Cr from INR 24 Lakh in the year-ago quarter. Employee benefit expenses increased to INR 53.5 Cr from INR 33.8 Cr in the corresponding quarter of the previous year.

Jio Finance, Jio Payments Bank See Steady Growth

Carved out from Reliance Industries Ltd (RIL) in 2023, the fintech company houses consumer-facing entities like Jio Finance, Jio Insurance Broking, Jio Payment Solutions, Reliance Industrial Investments and Holdings under its umbrella, and the most recent one – Jio Finance Platform and Service. 

It also has other entities like Jio Leasing Services, Jio Payments Bank Limited and three entities with a joint venture (JV) with American investment major Blackrock. 

Jio Finance, the NBFC arm of the company, had assets under management (AUM) of about INR 4,199 Cr as of quarter ended December 2024, an increase of 248% from INR 1,206 Cr in the previous quarter. 

The NBFC’s portfolio includes loans against mutual funds, home loans, loans against property (LAP), and loans on securities. It has presence in 7 cities in India with 9 offices. 

Meanwhile, Jio Payments Bank had 1.89 Mn CASA customers, i.e., customers with either current or saving accounts, as of December 2024. 

The company said that it is expanding its bank representative network as well. During the quarter under review, it had 7,300 representatives.

Meanwhile, Jio Payments Solutions has also been integrated with JioBharat phones to onboard small merchants. It also received payment aggregator licence from the RBI during the quarter under review. 

The company said that Jio Payments Solutions now has direct integrations with 10 banks, enabling it to offer net banking/cards services at competitive rates. 

It has also upgraded to a cloud-native, SaaS-based platform with all payment product features. 

Meanwhile in the insurance space, Jio Insurance Broking has now 54 plans in five product categories like auto, two wheeler, health and life (term and non-term). It has also included new embedded insurance products like solar panel insurance, cyber protection, credit life, property insurance and health insurance. 

Jio BlackRock Asset Management Seeks SEBI Approval

JFS has three joint ventures (JVs) with Blackrock – Jio BlackRock Investment Advisers for wealth management and Jio BlackRock Asset Management and Jio BlackRock Trustee in the asset management space.

In the quarterly filing, JFS said that Jio BlackRock Asset Management filed for final approval from SEBI in December. 

“The application for final approval of registration with SEBI has been made on December 12, 2024, which is under consideration as on date,” the company. 

This comes after it got an in-principle approval from the markets regulator in the preceding September quarter. 

Giving an update on the JV, the company said that its senior leadership and core business teams buildout is in advanced stages. Besides, it is building a unified investment platform for the JV. 

Meanwhile, Jio BlackRock Investment Advisers Private Ltd was incorporated during the quarter under review to offer wealth management services. Last month, JFS named company insider George Heber Joseph as the first chief investment officer of Jio BlackRock Investment Advisers.

Shares of JFS ended Friday’s trading session 0.83% higher at INR 279.05 on the BSE.