Investor Briefing: Jio Financial Services Q1 Performance & Outlook

Jio Financial Services delivered a strong financial performance for the first quarter of the fiscal year, driven by robust operational growth across its core credit and banking businesses. In reaction to the earnings release, the stock surged up to 6% in morning ***** Financial HighlightsThe company reported a substantial surge in profitability and core income, reflecting strong underlying operational ***** ResultYoY ChangeQoQ ChangeProfit After Tax (PAT)₹830 crore+156%+205%Net Interest Income (NII)₹544 crore+106%+58%Pre-Provision Operating Profit₹505 crore+38%+54%Operational Performance & Business ScalingNBFC Core Credit: Gross Assets Under Management (AUM) reached ₹30,667 crore, registering a stellar 163% YoY growth. Quarterly disbursements crossed ₹11,250 crore, driven by the aggressive scaling of Jio ***** Bank & Subsidiaries: Transactional traction remained strong with payments bank deposits expanding 72% YoY. Insurance and AMC franchises continue to exhibit steady, positive ***** Opex: Operating expenses remain elevated as the company continuously invests in incubating new verticals and building out ***** Outlook: Motilal OswalMotilal Oswal maintains a BUY rating on the stock with a target price of ₹315 per share, implying a 34% potential upside from current market levels (~₹244).Due to high initial deployment and infrastructure opex, the brokerage marginally cut its FY27 and FY28 EPS estimates by 4% and 6% ***** Future Value: The current sum-of-the-parts (SOTP) valuation provides a significant margin of safety, as it does not yet factor in the upside from key incubating businesses, including insurance manufacturing, wealth management, broking, and its digital marketplace.