Jio Financial: Q2 profit down 51%, fails my fresh-money test

Jio Financial Services reported Q2 FY27 consolidated profit of Rs 340 crore, down 51.1 percent from Rs 695 crore a year earlier, on total income of Rs 1,699 crore, up 131.7 percent. H1 profit is Rs 1,171 crore, up 14.8 percent. The result fails the test in my 12 October post: Q2 profit is below the Q1 figure I used, not above it. Q2 FY27 (consolidated, declared 15 October): Profit after tax: Rs 340 crore, down 51.1 percent YoY Total income: Rs 1,699 crore, up 131.7 percent YoY Finance costs: Rs 578 crore, up 325 percent YoY Share of associates and joint ventures: a loss of Rs 44 crore, swung from Rs 217 crore of income My 12 October post used Q1 FY27 profit of Rs 830.25 crore, from an unaudited report. I did not find a restated Q1 figure in the sources I checked, so that comparison stays provisional. The filing does not give a cause for the profit fall beyond the figures. Jio Financial [][***** closed at Rs 215.08 on 16 October on StockGro, down 1.0 percent from Rs 217.33. That is 3.2 percent above the Rs 208.50 exit level. At 82.1 times trailing earnings, against a sector P/E of 18.6, the stock is priced on a thin earnings base. My view: hold for holders, no fresh money. My exit is intact, but the result fails the fresh-money test I set on 12 October. Fresh money waits for Q2 profit above Q1 on a restated basis, and for the filing to explain the joint venture loss. Without both, no fresh money. My exit is a close below Rs 208.50, the 52-week low on the NSE, which the stock has not breached. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.