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Jio Financial Services shares jump after Q1 profit rises 155% YoY
The company reported consolidated net profit of ₹830 crore for the June quarter and revenue from operations up 227% YoY to ₹2,004 crore.
Jio Financial Services shares surged about 6% to ₹250 on the BSE after the company posted a 155% year-on-year jump in consolidated net profit to ₹830 crore for the June quarter, compared with ₹325 crore in the same period last year, LiveMint Markets reported.
The firm also reported rapid top line growth, with revenue from operations rising 227% YoY to ₹2,004 crore. Interest income increased 165% to ₹962 crore, while fee and commission income climbed to ₹325 crore from ₹54 crore.
Motilal Oswal kept a Buy rating on the stock with a target price of ₹315, implying potential upside of 34% from current levels. The brokerage attributed the June-quarter strength to growth in Jio Credit, where assets under management crossed ₹300 billion, along with steady progress across payments, insurance, and asset management.
Motilal Oswal also flagged that operating expenses remained elevated as Jio Financial continued scaling existing operations and incubating new businesses. The brokerage reduced its FY27 and FY28 EPS estimates by 4% and 6% respectively due to higher costs, while still expecting consolidated profit after tax to grow at a 46% compound annual growth rate between FY26 and FY28.