Jio Financial Services Ltd (NSE: JIOFIN) Q4 2025 Earnings Call dated Apr. 17, 2025
Corporate Participants:
Jill Deviprasad — Head of Investor Relations
Hitesh Kumar Sethia — Managing Director and Chief Executive Officer
Abhishek Pathak — Group Chief Financial Officer
Presentation:
Jill Deviprasad — Head of Investor Relations
Good evening, everyone. My name is Jill Deviprasad, and I’m the Head of Investor Relations for Jio Financial Services Limited. On the declaration of the results, for the quarter and financial year ended March 31, 2025, it gives me immense pleasure to welcome the analysts, investors and our colleagues to this virtual meeting. We have with us today, our MD and CEO, Mr. Hitesh Sethia, and our Group Chief Financial Officer, Mr. Abhishek Pathak. [Operator Instructions]
The earnings presentation is uploaded on our website, www.jfs.in and on the stock exchanges. Before I hand over the call, I would like to read out the safe harbor statement. This presentation contains forward-looking statements, which may be identified by their use of words like plans, expects, estimates or other words of similar meaning. All statements that address expectations or predictions about the future including, but not limited to, statements about strategy for growth, product development, market position are forward statements based on rationale and data. Actual results may vary materially given market circumstances.
I will now hand over the call to Hitesh to discuss the business in detail.
Hitesh Kumar Sethia — Managing Director and Chief Executive Officer
Thank you, Jill. Good evening, everyone. A very warm welcome to Jio Financial Services Q4 FY’25 and full year FY’25 earnings presentation. We are pleased to share with all of you the achievements and incredible progress made over the last financial year. In fiscal 2025, we leveraged the strong operational foundation built in 2024 FY across people, process, technology and governance to drive exceptional execution and significant growth across Jio Financial Services. This year was defined by product launches in quick succession, a strategic expansion of our distribution network and the growing adoption of the JioFinance app, our intuitive digital platform, central to our retail strategy. The groundwork has begun translating into sustainable momentum in operating performance.
In FY’25, we earned an income of INR349 crores from our core business operations, up 101% year-on-year. This comprises interest income from Jio Finance Limited and Jio Payment Bank Limited and fees and commission income from Jio Payment Solutions Limited, Jio Insurance Broking Limited, Jio Payment Bank Limited and Jio Finance Limited. The company also reported a healthy pre-provision operating profit of INR1,594 crores for FY 2025, including investment income and dividend income.
To support our growing scale across businesses, we also made equity investments of INR1,346 crores in our group entities, including Jio Finance Limited, Jio Payment Bank Limited and the joint ventures with BlackRock for asset management and wealth management to enable these entities to expand their market presence. Our shareholders have been a firm pillar of support, empowering us to pursue our mission of building a strong and successful financial service institutions. Acknowledging the significant role that our shareholders play, the Board of Directors of the company have recommended a dividend of INR0.5 per equity share with a face value of INR10.
The JioFinance app, which was launched in May 2024 and integrated with MyJio in September 2024 is a testament to our commitment to user-friendly design catering to all generations. It has rapidly achieved significant traction across eight million monthly active users across our digital platforms in March 2025. This robust engagement demonstrates the apps strong to be based on valuable user feedback, we are now developing an enhanced version of this app, which will be released later this year.
Moving on to the various businesses, the NBFC, Jio Finance Limited, or JFL, has grown its assets under management significantly to INR10,053 crores as of March 31, 2025 compared to INR173 crores as of March 31, 2024, and INR4,199 crores as of December 31, 2024. The AUM is a combination of several secured lending products and wholesale lending solutions catering to both retail and enterprise customers. Jio Payment Bank Limited, or JPBL, has seen substantial growth in its customer base, which has tripled year-on-year to 2.31 million and deposits also has tripled to INR295 crores.
In March this year, we signed an agreement with — signed an agreement to acquire State Bank of India’s remaining stake in Jio Payment Bank. This transaction is subject to regulatory approvals. A key highlight for our Payment Solutions business was receipt of the online payment aggregator license. Lastly, Jio Insurance Broking Limited, or JIBL, has tied up with 34 insurers. JIBL currently offers as many as 61 plans across life, health and motor insurance directly to customers. We will now take a detailed look at the five key areas: product, distribution, technology, data intelligence and people, which we believe are very critical to our success.
In FY 2025, we launched a diverse set of products catering to the four core needs of customers. The need to borrow, need to transact, need to invest and need to protect. Through the JioFinance app and MyJio, we offer convenient financial solutions to customers, spanning payments, banking, loans, insurance and investment options like digital world. A key feature of the app is My Money, which is a streamlined personal finance manager, helping customers keep track of their expenses and investment portfolio.
In FY’25, we also focused on growing our digital and physical distribution footprint to cater to a large cross-section of customers. As mentioned earlier, on the digital front, the JioFinance app was launched in Q1 FY’25 and integrated with MyJio in Q2 FY’25. Our marketing agreement to leverage the group’s and ecosystem expansive customer base through contextual marketing campaigns is helping us reach customers with targeted offerings relevant for them thereby driving adoption. The launch of Jio Sound Way an innovative way of receiving audio UPI alerts on the Jio Bharat Feature Phone is helping us reach and onboard small merchants for our payments solutions business.
During the year, we also began leveraging the vast distribution network of our group ecosystem to distribute retail lending products. Simultaneously, we expanded our physical presence to 10 Tier 1 cities and will continue to focus on cities with strong demand for credit. Lastly during FY’25, JPBL’s business correspondent network has expanded rapidly, growing around six times year-on-year to around 14,000 business correspondents extending our reach into the underserved areas of the country.
Moving around, this slide showcases our target customer segments and JFSL’s strategic approach to achieve its mission of becoming a trusted financial companion across every touchpoint addressing the four core needs of customers which is borrowing, transacting, investing and protection. Our operating entities, JFL, JIBL, JPSL and JPBL, alongside our AMC wealth and broking joint ventures with BlackRock, which are pending regulatory approvals, strategically position us to offer solutions accessible to a wide cross-section of Indian consumers across economic segments.
Moving forward, as a digital first financial service provider, technology that is agile and scalable is core to our business. We made significant strides in this area in FY’25, focusing on building a lean and efficient infrastructure. The implementation of new systems in our lending business, the re-platforming of our payment solutions tech architecture and the unified tech stack across JFSL are mission-critical achievements. These initiatives, driven by our core technology tenants, including fit for purpose, SaaS first, reliability and availability and ZeroOps position us for great operational efficiency and provide a strong platform for future growth and innovation. We are building a future profit infrastructure by embracing modern cost effective open source technologies, ensuring rapid adoption to market changes and customer needs by avoiding the pitfalls of legacy systems.
Moving forward, at Jio Financial Services, our commitment is to deliver simple, yet intelligent financial services, the right product to the right customer through the right channel at the right time. This is powered by a sophisticated data intelligence architecture. We have built a robust infrastructure layer that seamlessly integrates diverse data sources, which includes bureau, account aggregator, alternate data and our proprietary data within the regulatory countries. This comprehensive data is then processed and analyzed using advanced analytics and AI, all within a strong data governance framework. This intelligence framework yields us tremendous strategic advantages, highly relevant customer offerings, enhanced user experiences, early detection of potential defaults and a very significantly improved operational efficiency.
By harnessing the power of data within regulatory countries, we deliver simple, intuitive financial solutions that drive customer delight and cost-effective operations. Our people are core to our long-term business and ownership mindset a drive for execution excellence and a digital-first approach from the core of JFSL’s talent DNA. We have strategically brought together experienced leaders from traditional banking, agile NBFCs and innovative fintechs, enabling us to tackle challenges from multiple perspectives and deliver exceptional results. Our agile organization structure is further strengthened by our diverse yet lean talent pool of 1,000 team members across all legal entities of the JFSL Group. To enhance our adaptability and build truly world-class capabilities, we are also proactively integrating big workers and welcoming global talent into our pool. This dynamic approach ensures we remain nimble and responsive in an actively evolving market.
Now let’s take a more detailed look at each of our businesses, starting with the NBFC Jio Finance Limited or JFL, reflecting the growing scale of lending arm, JFL’s AUM of INR10,053 crores as of March 31, 2025, representing 139% sequential growth. Our retail AUM comprises both organic growth and direct assignments with a focus on prime and near-prime retail customers. Similarly, our wholesale lending segments target only high credit rated companies. This disciplined approach ensures a high quality and a well-diversified loan portfolio.
JFL now has a comprehensive portfolio of secure products to meet the diverse needs of our customers. This includes corporate offerings such as vendor financing, working capital terms, working capital loans, term loans and factory as well as retail products such as home loans, loan against property, loan against mutual funds and loan against shares. To enhance our customer suite, we have expanded our distribution by a persona-based acquisition campaigns, a physical presence in 10 cities and by leveraging the group ecosystem distribution network. We are also tapping external go-to-market channels such as digital real estate marketplaces for home loans, tie up with wealth management firms and banks for distributing loan against securities and forging direct institutional sales and channels.
Moving on, JPBL is committed to providing accessible and inclusive banking services to all nationwide. Our target customer segment encompass both urban and rural users. For urban consumers, JPBL serves as a valuable secondary account streamlining their preferences and offering access to a wide range of financial services. For rural customers, it acts as a primary bank account fulfilling core banking needs through our assisted digital channels. To serve these diverse needs, we offer a comprehensive suite of products including various savings account options, physical and virtual debit cards, domestic money transfer and Aadhaar enabled payment system. With the significant growth in our business correspondent network, which enables to serve customers across the country, we have seen meaningful expansion in our customer base which has reached 2.3 million and deposits have reached INR295 crores.
Now moving to JPSL, Jio Payment Solutions Limited. This subsidiary delivers a comprehensive suite of payment solutions for merchants and retail solutions powering online, in-store offline and remote transactions. driven by significant technological advancements this past year, JPSL is strategically positioned to pursue a diversified distribution strategy. Micro and small merchants onboarding through JIO Bharat Phones, dedicated engagement channel for large clients and leveraging the group’s ecosystem to acquire Enterprise clients. JPSL’s focus remains on profitable growth while expanding margins and maintaining unit level profitability. Our joint venture with BlackRock for asset management, wealth management and securities booking promises to bring world class investment solutions to the people of India at the time when financialization of savings is continuing to gain momentum.
In the Asset Management business, we are applied for and awaiting final approval from the regulator. We are onboard with the senior leadership and core business teams and our unified investment platform and infrastructure deployment is near complete. The asset management business is ready for launch with a very well defined product roadmap and go-to-market strategy. In the Wealth Management and broking parts of the JV, we have incorporated Jio BlackRock Investment Advisors Private limited and Jio BlackRock Broking Private Limited and filed applications for the registered investment advisor license and broking license through the securities regulator. We are actively recruiting the senior leadership for all these businesses.
Serving our customers’ core financial needs holistically also create cross-sell and up-sell within our business. The JFSL group leverages initial customer touchpoints to cultivate awareness and adoption of its broader financial product range starting with any JFSL product opens the door for customers to explore our full range of offerings across payment, insurance, investment and lending products. Towards this, necessary customer data platforms and unified customer identification systems are being put in place. A very powerful flywheel effect is created with increased product adoption builds momentum leading to people engagement, data loyalty and advocacy which then propels customer acquisition and sustainable and profitable growth.
To conclude, when I think about where we started and where we are headed, our progress so far fills me with the sense of purpose and optimism. Our aspiration is very clear: to become one of the leading companies in financial services both in terms of meaningful market share as well as return ratios reflecting the strength and sustainability of our business model. The way forward is continued focus and disciplined execution scaling our business optimising our product stack and delivering digital experiences that rival the best in the world. All of this of course will be done within the guardrails of robust governance and compliance. We are deeply committed to doing the right thing always, transparency, responsibility and integrity at the core of every single thing that we do.
Finally, I would like to express my sincere gratitude to our Board of Directors for their steadfast guidance to our investors for their continued trust and last but not least, to my colleagues whose commitment and passion drive our progress every single day. Together, we are laying the foundation for a new kind of financial service institution, one that is digital first, customer-centric and built truly for the long term. Thank you.
Now I would like to hand it over to Abhishek Pathak, our Group CFO, who will take you through our financial highlights for the year.
Abhishek Pathak — Group Chief Financial Officer
Thank you, Hitesh. Good evening, everyone. A warm welcome to you all for the review of our performance for the fourth quarter and full year ended March 31, 2025. [Phonetic] I will start with some comments on the business and then dive into the financial performance. FY’24/’25 has been an exceptional year for Jio Financial Services Limited, characterized by robust growth and operational excellence as we scaled our business operations while targeting profitable unit economics. This was also supplemented by a strategic infusion of INR1,346 crores as equity during the year in our operating entities, namely Jio Finance Limited, Jio Payments Bank Limited and our JVs with BlackRock for asset management and wealth management.
Our focus on strong governance, hiring top tier talent and implementing a modern, cost-efficient tech and data architecture is now reflected in our performance. Our NBFC, Jio Finance Limited, closed the financial year with an AUM of over INR10,000 crores. This year also marked the successful closure of the NBFC’s maiden debt issue of INR1,000 crores at a very competitive rate of interest. JFSL’s Board of Directors approved the acquisition of State Bank of India’s remaining state and Jio Payments Bank Limited for INR105 crores. And this transaction is currently awaiting regulatory approval. Jio Payments Bank is a strategic asset for JFSL, driving customer acquisition, engagement and retention.
Finally, the Board of Directors of Jio Financial Services Limited has recommended a dividend of INR0.5 per share for the year ended March 31, 2025. This dividend distribution reflects to the principle of return on capital and our ongoing efforts to create shareholder value. Moving on, as you are aware, JFSL is a holding company and consolidates the results of its various operating entities with itself. This includes the consumer-facing entities, namely Jio Finance Limited, Jio Insurance Broking Limited, or JIBL, Jio Payments Solutions Limited, or JPSL, Jio Leasing Service Limited, or JLSL, Jio Finance Platform and Services Limited, [indecipherable] Jio Payments Bank or JPBL, our JV with SBI.
Our joint ventures with BlackRock, Jio BlackRock Asset Management Private Limited and Jio BlackRock Investment Advisors Private Limited. During the quarter, we incorporated Jio BlackRock Broking Private Limited as a wholly owned subsidiary of Jio BlackRock Investment Advisors Private Limited to offer subject — broking services subject to regulatory approval. Further, the consolidated financial statements also include the results of the following entities, namely Reliance Industrial Investments and Holdings Limited, or RIIHL, which is an investment holding company and wholly owned subsidiary of JFSL, Reliance Services & Holding Limited, or RSHL, which has been accounted for an associate and Reliance International Leasing IFSC Limited, or RILIL, an entity based out of GIFT City SCZ in Gujarat, which has been accounted for as a joint venture in accordance with Ind AS 110. Each entity operates under an independent growth with strong governance, JFSL ensures effective oversight to group level compliance, audit and risk functions.
Moving on to the financial performance for Q4 FY’25 and full year FY’25. Our financial results for this period are prepared in compliance with Indian Accounting Standards as prescribed by Ministry of Corporate Affairs. I will first start with the fourth quarter. JFSL’s consolidated total income for the quarter was INR518 crores versus INR418 crores in Q4 FY’24 and INR449 crores in Q3 FY’25. The consolidated total income for Q4 FY’25 comprised of the following: interest income of INR276 crores, which comprises of interest on our lending operations and invest income from our treasury operations.
Net gain on fair value changes on money market and liquid mutual funds of INR178 crores. Fees and commercial income of INR39 crores on account of fees received by the insurance booking and payment service businesses. The company’s total expenses including provisions for Q4 FY’25 was INR168 crores as compared to INR103 crores in Q4 FY’24 and INR131 crores in Q3 FY’25. Provisions on account of ECL increased to INR24 crores in Q4 FY’25 from INR12 crores in Q3 FY’25, in line with our growing operations of JFL. Excluding provisions, total expenses increased on a quarterly basis primarily due to higher expenses associated with scaling of our businesses. The company is reprovisioning operating profit or people stood at [Phonetic] INR374 crores in Q4 FY’25 versus INR317 crores in Q4 FY’24 and INR320 crores in Q3 FY’25.
Shares of associates and joint ventures stood at INR46 crores in Q4 FY’25 versus INR78 crores in Q4 FY’24 and INR59 crores in Q3 FY’25. It may be noted that this includes JVs at BlackRock, which were incorporated during the course of this financial year and are yet to commence operations. Consolidated profit after tax in Q4 FY’25 stood at INR316 crores versus INR311 crores in Q4 FY’24 and INR295 crores in Q3 FY’25. On a quarter-on-quarter basis, increase in total income was partially offset by higher expenses, including provisions and a lower share of associates and joint ventures.
Moving on to the consolidated financial performance for the year ended March 31, 2025. Consolidated total income for the year increased to INR2,079 crores from INR1,855 crores last year. This comprise the following: interest income of INR853 crores of interest-bearing assets investments. Of this, INR167 crores was on account of interest found by JFL on its own book and the rest was on account of interest income from treasury operations. Dividend income of INR241 crores received on shares of Reliance Industries, RIIHL. Fees and commission income of INR155 crores on account of fees received by insurance broking and payment solutions business, net gain on fair value changes on money market and liquid mutual funds of INR794 crores.
Notably, the interest income generated by our lending operations underscores the increasing scale of this business segment. Our treasury operations also demonstrated strong performance during the quarter and the year effectively managing market uncertainties. The total expenses during the quarter including provisions of INR40 crores was INR525 crores as compared to INR327 crores in FY’24. The rise in total expenses was mainly attributable to higher employee costs and other operating expenses. The strategic spend, especially on technology is part of the building — as part of our building blocks we are putting in place across all our entities and is critical to ensure a long-term competitiveness.
According the pre-provisioning operating profit stood at INR1,594 crores in FY’25 versus INR1,530 crores in FY’24. Share of associates and joint ventures declined to INR393 crores in FY’25 versus from INR428 crores in FY’24. As highlighted earlier, this includes JVs of BlackRock, which were incorporated during the course of this financial year and are yet to commence operation. We will sum up, the increase in total income was offset by higher expenses including provisions and newer share of associates and joint ventures. Consequently, our consolidated profit after tax stood at INR1,613 crores versus INR1,605 crores at FY’24.
Now moving on to the balance sheet items JFSL’s consolidated network stood at INR1.23 lakh crores as of March 31, 2025, and consolidated total assets stood at INR1.34 lakh crores with total consolidated total investments of INR1.19 lakh crores. One of our greatest strengths is a well-capitalized and resilient balance sheet, which provides a solid foundation for sustained growth. It positions us to confidently scale our operations, invest in innovation and pursue strategic opportunities that align with our long-term vision.
Now moving on to our stand-alone financial performance for the fourth quarter of the financial year ended March 31, 2025. Stand-alone total income in Q4 FY’25 was INR175 crores versus INR141 crores in Q4 FY’24 and INR148 crores in Q3 FY’25. Total expenses, including provisions for Q4 FY’25 was INR49 crores as compared to INR37 crores in Q4 FY’24 and INR48 crores in Q3 FY’25. On a stand-alone basis, the profit after tax of the company for Q4 FY’25 was INR97 crores versus INR78 crores in Q4 FY’24 and INR75 crores in Q3 FY’25.
Moving on to the stand-alone financial performance for the financial year ended March 31, 2025. Stand-alone total income in FY’25 was INR839 crores versus INR639 crores in FY’24. It is to be noted that in Q2 FY’25, JFSL received dividend income of INR235 crores from RIIHL. Total expenses, including provisions for FY’25 on a stand-alone basis was INR186 crores as compared to INR117 crores in FY’24. As mentioned earlier, the increase in expenses was on account of an increase in employee cost and other expenses, in line with our operational scale up. On a stand-alone basis, the profit after tax of the company for FY’25 stood at INR549 crores versus INR383 crores in FY’24.
Moving on to the balance sheet items. The company’s stand-alone total assets as of March 31, 2025, stood at INR25,096 crores with a total investment of INR22,706 crores. Stand-alone net growth stood at INR24,985 crores as of March 31, 2025.
To sum it up, we are pleased with the significant progress made in FY’25. Despite being in the formative stage of our journey, we continue to deliver profitable growth in FY’25. While pursuing growth, our strategic focus has been on leveraging our cost levers and achieving profitable unit level economics will robust risk management framework and prudent regulatory gardens.
I would like to conclude by thanking our shareholders for their continued support as we progress further towards building a strong new age financial institution. Thank you.
Questions and Answers:
Jill Deviprasad
Thank you, Hitesh, and Abhishek. Thank you, everyone, for joining this call. As we conclude our earnings call, we invite you to explore the detailed earnings presentation available on our website and the stock exchanges. Have a good one. Thank you.