At a Glance
Jio Financial Services (JFSL), the financial brainchild of Reliance Industries, has officially arrived in the stock market gala with a ₹1.91 lakh crore crown and a 1.23% ROE. From loans and insurance to mutual funds (with BlackRock 😏), JFSL is India’s newest fintech flex — but its valuation math is giving Warren Buffett migraines.
🧠 TL;DR
- 📦 Spun off from Reliance in 2023 as a financial services holding company
- 🧾 Operates via subs like Jio Finance, Jio Insurance Broking, and Jio Payments Bank
- 🤝 JV with BlackRock for mutual funds: “Because every Ambani project needs an international twist”
- 🪙 Valuation: ₹1.91 lakh crore (more than Chola, Aditya Birla Capital, Tata Inv. Corp combined)
- 📉 ROE: 1.23% | P/E: 119x | PAT FY25: ₹1,613 Cr
- 🧮 Fair Value: ₹130–₹160 range (details below)
📦 What Exactly Does Jio Financial Do?
This isn’t your average NBFC. JFSL is structured as a Core Investment Company (CIC-ND-SI) under RBI. Meaning:
- ❌ No deposits
- ✅ Holding company structure
- ✅ Minority equity in operating subs
- ✅ Deep Ambani-level capital firepower
Its direct businesses include:
| Subsidiary | Segment | Comments |
|---|---|---|
| Jio Finance Ltd | Lending | Focused on small ticket personal and merchant loans |
| Jio Insurance Broking Ltd | Insurance Distribution | In beta phase, likely to go big with Reliance Retail tie-ups |
| Jio Payment Solutions Ltd | Payment Infrastructure | Competing with Paytm and PhonePe |
| Jio Payments Bank Ltd | Banking (now 100% owned) | Acquired SBI stake on June 18, 2025 |
| Jio BlackRock | Mutual Funds | SEBI-licensed AMC in partnership with BlackRock |
📈 Financial Performance: So Far, So Vanilla
🧾 FY25 Results (Consolidated)
| Metric | FY24 | FY25 | % YoY |
|---|---|---|---|
| Revenue | ₹1,855 Cr | ₹2,043 Cr | 🔼 +10.1% |
| EBITDA | ₹1,559 Cr | ₹1,548 Cr | 🔽 -0.7% |
| PAT | ₹1,605 Cr | ₹1,613 Cr | Flat |
| EPS | ₹2.53 | ₹2.54 | 😂 Who moved my cheese? |
| OPM | 84% | 76% | Margins are still bloated from treasury income |
🧮 But Wait, What’s Driving These Profits?
Mostly treasury investments. JFSL owns:
- ₹1.18 lakh Cr in investments (largely Reliance-linked)
- ₹14,405 Cr in other assets (including loans and deposits)
So, yes — Jio Financial is making money not from lending, but from sitting on a mountain of capital and collecting interest like a retired uncle with 3 FDs.
🤖 Valuation: Let’s Talk Elephant in the Room
At ₹301/share, JFSL’s current market cap = ₹1.91 lakh Cr. Here’s what that gets you:
- Book Value: ₹194 ➡️ P/B = 1.55x
- EPS: ₹2.54 ➡️ P/E = 119x 😵
- ROE: 1.23% ➡️ Value investors: “We’re outta here”
🔍 Peer Comparison
| Company | Market Cap | P/E | ROE |
|---|---|---|---|
| JFSL | ₹1.91 L Cr | 119x | 1.2% |
| Aditya Birla Capital | ₹70.7K Cr | 21x | 9.3% |
| Chola Financial | ₹38.3K Cr | 17x | 10.5% |
| TVS Holdings | ₹21.8K Cr | 19x | 15.3% |
You’d expect JFSL to have razor-sharp tech margins or lending scale — but nope. It’s still in pilot mode.
🤝 Recent Developments
- 🔧 CIC Status Approved: RBI greenlit JFSL as a Core Investment Company in July 2024
- 💰 Acquired JPBL: Bought SBI’s 7.9 Cr stake in Jio Payments Bank on June 18, 2025
- 🌍 SEBI Nod for Jio BlackRock: MF license granted in June 2025
Basically, they’re building the foundation, not skyscrapers. Yet.
🧾 Shareholding Trends
| Category | Sep ’23 | Mar ’25 |
|---|---|---|
| Promoter | 46.8% | 47.1% |
| FIIs | 21.6% | 11.7% 👎 |
| DIIs | 13.6% | 14.2% 👍 |
| Public | 17.8% | 26.8% 🚀 |
FIIs are bailing slowly. Retail is buying the dream.
🔍 Fair Value Estimate
Let’s ignore the hype and try a sober calculation.
- FY25 PAT = ₹1,613 Cr
- Normalized growth (next 2 yrs) = 20% CAGR (if lending finally kicks in)
- FY27E PAT = ~₹2,320 Cr
- Fair P/E for CICs = 15x (high quality NBFCs trade 18–22x)
FV = ₹2,320 Cr × 15 / 6,353 Cr shares = ₹54.75
BUT let’s add strategic premium for:
- 🧠 RIL parentage
- 🌍 BlackRock JV
- 🏦 Banking + insurance + AMC optionality
➡️ EduInvesting FV Range = ₹130 – ₹160
🥁 Final Verdict: More Hype Than Hustle (For Now)
Right now, JFSL is all dressed up with nowhere to go. A ₹1.9 lakh Cr market cap, but still making money like a regional NBFC. That’s Ambani Privilege™ for you.
But don’t write it off — the pieces are in place:
- Lending engine? Coming.
- Insurance? Scalable.
- Mutual Fund BlackRock bro-collab? Global appeal.
- Retail reach? unmatched via Reliance Retail.
Just… don’t pay 119x earnings for it.
Tags: Jio Financial Services, JFSL, Ambani, Jio BlackRock, CIC, NBFC, IPO demerger, Indian finance, BlackRock JV, Reliance, financial services India, mutual fund license
✍️ Written by Prashant | 📅 June 24, 2025
