Jio Financial Services Limited (JFSL) has released its financial and operational update for the first quarter of FY25, showcasing steady growth and strategic advancements across its business segments.
The company’s net interest income (NII) saw a significant decline of approximately 42% quarter-on-quarter (QoQ) to Rs 1.6 billion in Q1 FY25, down from Rs 2.8 billion in the previous quarter. Despite this, other income surged by about 86% QoQ to Rs 2.6 billion. Operating expenses were reduced by 22% QoQ to Rs 790 million, attributed to the absence of business setup costs that impacted the previous quarter.
Operating profit experienced a modest increase of 7% QoQ, reaching Rs 3.4 billion. Credit costs were substantially lowered to Rs 3 million from Rs 18 million in Q4 FY24. However, the profit contribution from joint ventures (JVs) and associates fell by around 20% QoQ to approximately Rs 619 million. Overall, profit before tax (PBT) grew by 2% QoQ to Rs 4.0 billion, while profit after tax (PAT) increased by 1% QoQ to Rs 3.1 billion.
Strategic initiatives and market expansion
JFSL is actively enhancing its market position and operational capabilities with a strong focus on digital-first strategies. The company launched multiple initiatives, including acquiring multi-bank UPI and integrated payments solutions, streamlining transaction processes to improve customer convenience.
A key element of JFSL’s growth strategy is its diversified product portfolio and innovative financial solutions. The recent introduction of embedded finance products, such as EMI options on credit/debit cards and Brand EMI, aims to enhance affordability for consumers and bolster the company’s competitive edge.
In the NBFC sector, JFSL has introduced vendor financing, loans against mutual funds, and device financing solutions. It is currently beta-testing home loans and plans to expand its secured lending products, including loans against property (LAP) and securities. The company is leveraging direct-to-consumer (D2C) strategies with a digital-first approach to boost customer engagement.
In leasing, JFSL commenced its operating lease business for AirFiber devices in June 2024. The company’s embedded finance product offers cost-effective leasing options, reducing asset ownership risks. With shareholder approval for related party transactions up to INR 360 billion, JFSL is poised to scale operations, with future plans to launch leasing services for solar panels and IT equipment.
In the investment sector, JFSL has formed a 50:50 joint venture with BlackRock to enter the wealth management and broking business. The infrastructure and technology platforms are in advanced development stages, with key leadership roles already identified.
Technological developments
JFSL is making significant strides in infrastructure and technology development. Advanced platforms for UPI acceptance, billing terminals, and mini-point-of-sale (mPoS) systems are under development. The company is also leveraging AI-driven solutions, including a chatbot on its merchant business app, to enable self-help capabilities and optimise operational efficiencies.
