Hold Jio Financial Services; target of Rs 325: Deven Choksey

Deven Choksey recommended hold rating on Jio Financial Services with a target price of Rs 325 in its research report dated July 28, 2025.

Broker Research

July 29, 2025 / 11:05 IST

hold

26 Aug, 2025 12:21

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Deven Choksey's research report on Jio Financial Services

In Q1FY26, the Net Interest Income (NII) stood grew by 63.3% YoY (-1.5% QoQ) to INR 2,641 Mn., led by huge scale-up of NBC operations. Sequentially NII stood flat, led by higher finance costs on account of increased external borrowings. Total operating income grew by 24.6% YoY (1.9% QoQ) to INR 5,207 Mn, majorly led by increase in net interest income. Pre-Provision Operating Profit (PPoP) grew by 8.0% YoY (-2.1% QoQ) to INR 3,659 Mn., led by stronger momentum in NII growth driven by sharp ramp-up in AUM. Net profit grew by 3.8% YoY (+2.7% QoQ) to INR 3,247 Mn., led by improved operational performance. Net profit was positively impacted by a one-off gain of INR 286 Mn., Adjusted net profit declined by 5.3% YoY (-6.3% QoQ) to INR 2,961 Mn.

Outlook

We value JFSL at a 1.8x Q1FY26 ABV (considering a 20.0% Holdco discount) to arrive at a revised target price of INR 325 per share. We reiterate our “HOLD” rating on the stock.

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