Jio Financial Services Limited — Q4 FY25 earnings call

Call held 17 Apr 2025

Management summary

Jio Financial Services delivered its first full year of meaningful operations, scaling the NBFC AUM from Rs 173 crores to Rs 10,053 crores. The company operates as a digital-first financial services platform spanning lending, payments, insurance broking, and upcoming BlackRock JV for asset management. While PAT was essentially flat at Rs 1,613 crores (largely from treasury/investment income), core business revenue doubled. The company is building institutional infrastructure with ~1,000 employees and technology-first approach.

Highlights

  • NBFC (JFL) AUM surged to Rs 10,053 crores from Rs 173 crores a year ago (139% QoQ growth)

  • Consolidated total income Rs 2,079 crores for FY25 vs Rs 1,855 crores in FY24

  • Core business income of Rs 349 crores, up 101% YoY; PAT Rs 1,613 crores vs Rs 1,605 crores

  • JioFinance App crossed 8 million monthly active users by March 2025

  • Jio Payments Bank: customers tripled to 2.31 million; deposits tripled to Rs 295 crores

  • Equity investments of Rs 1,346 crores in subsidiaries during FY25

  • NBFC maiden debt issue of Rs 1,000 crores at competitive rates completed

  • Board approved acquisition of SBI's remaining stake in Jio Payments Bank for Rs 105 crores

Key financials

2 periods

Headline

  • Consolidated Total Income
    ₹2,079 Cr
    YoY +12.1%
  • Consolidated PAT
    ₹1,613 Cr
    YoY +0.5%
  • NBFC AUM
    ₹10,053 Cr
    QoQ +139%
  • Pre-Provisioning Operating Profit
    ₹1,594 Cr
    YoY +4.2%
  • Core Business Income
    ₹349 Cr
    YoY +101%
  • Total Expenses (incl provisions)
    ₹525 Cr
    YoY +60.6%
  • ECL Provisions
    ₹40 Cr
  • Consolidated Net Worth
    ₹1.23L Cr
  • JPBL Customers
    23,10,000
    YoY +200%
  • JPBL Deposits
    ₹295 Cr
    YoY +200%
  • Fees & Commission Income
    ₹155 Cr
  • Interest Income from Lending
    ₹167 Cr
  • Dividend Income (RIIHL)
    ₹241 Cr

Q4

  • Consolidated PAT
    ₹316 Cr
    YoY +1.6% QoQ +7.1%

What they filed

Q1 FY27: revenue up 227.5%, net profit up 155.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue694 438 493 612 981 +41%901 +106%1,019 +107%2,004 +227%
EBITDA553 313 338 457 688 +24%555 +77%605 +79%1,397 +206%
Net profit689 295 316 325 695 +1%269 −9%272 −14%830 +155%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • NBFC (Jio Finance Ltd)
    ₹10,053 Cr AUM₹167 Cr Interest Income
  • Insurance Broking (JIBL)
    34 Insurer Tie-ups61 Plans Offered
  • Payments Bank (JPBL)
    23,10,000 Customers₹295 Cr Deposits14,000 BC Network
  • Payment Solutions (JPSL)
    0 Online PA License received Status
  • Treasury/Investments
    ₹1,035 Cr Investment Income + Dividends

Guidance & targets

Growth

  • NBFC AUM Growth · FY26 · Medium confidence Continued scaling

    From Rs 10,053 crores today

    Our aspiration is very clear: To become one of the leading companies in financial services - both in terms of meaningful market share as well as return ratios.

    — Hitesh Sethia

Product

  • JioFinance App Enhancement Product · FY26 · High confidence Enhanced version release
    We are now developing an enhanced version of this app, which will be released later this year.

    — Hitesh Sethia

Risks & concerns

  • PAT essentially flat at Rs 1,613 cr vs Rs 1,605 cr despite massive business scaling

    medium

    Core business income doubled but total income growth modest. PAT dominated by treasury income (Rs 794 cr MF gains, Rs 241 cr dividends) not core operations.

    Both acknowledged

  • Expenses growing faster than revenue - Rs 525 cr vs Rs 327 cr (61% growth)

    medium

    Employee costs and tech spending scaling rapidly. Management positions as investment in building blocks but path to profitability from core operations unclear.

    Both acknowledged

  • No Q&A session limits investor engagement and transparency

    medium

    Unlike peers, JIOFIN conducts presentation-only calls with no analyst questions. This limits ability to probe asset quality, growth strategy, competitive positioning.

    Analyst not addressed

  • AUM growth driven significantly by wholesale lending which can be lumpy

    medium

    139% QoQ AUM growth likely includes large wholesale ticket loans. Sustainability of this growth rate and quality of wholesale book untested through credit cycles.

    Both downplayed

Areas of evasion (4)

  • No Q&A conducted at all
  • AUM breakdown between retail/wholesale not quantified
  • NIM/yields not disclosed
  • Asset quality details minimal

Q&A highlights

3 direct
No Q&A Session Conducted Direct
As we conclude our earnings call, we invite you to explore the detailed earnings presentation available on our website.

JIOFIN does not conduct Q&A sessions in their earnings calls, limiting analyst ability to probe management on strategy, risks, and financial details.

AUM Composition and Lending Strategy Direct
JFL's AUM is a combination of several secured lending products and wholesale lending solutions, catering to both retail and enterprise customers... with a focus on prime and near-prime retail customers.

AUM grew from Rs 173 cr to Rs 10,053 cr in one year. Mix of corporate (vendor financing, working capital, term loans, factoring) and retail (home loans, LAP, LAMF, LAS).

BlackRock JV Progress Direct
In the asset management business, we have filed for and awaiting final approval from the regulator... The asset management business is ready for launch.

AMC ready to launch pending SEBI approval. Wealth management and broking JVs incorporated, licenses filed. Could be a significant growth catalyst.

1 min read 4 chapters

Detailed narrative

NBFC AUM Scales From Near-Zero to Rs 10,000 Crores

Jio Finance Limited's AUM grew from Rs 173 crores (March 2024) to Rs 10,053 crores (March 2025), with 139% sequential growth in Q4 alone. Products include corporate offerings (vendor financing, working capital, term loans, factoring) and retail (home loans, LAP, LAMF, LAS). Lending interest income was Rs 167 crores for FY25. The NBFC completed its maiden Rs 1,000 crore debt issue at competitive rates.

Digital Platform and Distribution Expansion

JioFinance App launched in May 2024 and integrated with MyJio in September 2024, reaching 8 million monthly active users by March 2025. Physical presence expanded to 10 Tier-1 cities. JioSoundPay launched for merchant UPI alerts on JioBharat feature phones. Jio Payments Bank's BC network grew 6x to 14,000, with customers tripling to 2.31 million. Insurance broking tied up with 34 insurers offering 61 plans.

Financial Profile Dominated by Treasury Income

Of Rs 2,079 crores consolidated total income, core business operations contributed only Rs 349 crores (17%). Treasury operations generated Rs 794 crores from MF fair value changes and Rs 241 crores in dividend income. Consolidated net worth of Rs 1.23 lakh crores (largely Reliance group investments) generates minimal return from financial services operations. PAT of Rs 1,613 crores is essentially unchanged from FY24.

BlackRock JV and Future Growth Catalysts

Asset management JV with BlackRock filed for SEBI approval, with senior leadership onboarded and platform near-complete. Wealth management and broking entities incorporated with license applications filed. Online Payment Aggregator license received for JPSL. SBI stake acquisition in Payments Bank (Rs 105 crores) awaiting regulatory approval. These represent potential catalysts for FY26-27.

This is an AI-generated summary of a publicly available earnings call transcript.
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