Shares of Jio Financial Services (JFSL), the financial arm of Reliance Industries, fell 3% in early trade today, January 20, to ₹271 as the company failed to impress Dalal Street with its December quarter results, which were released on Friday after the market.

For the quarter ended December 2024 (Q3FY25), the company reported a marginal increase of 0.3% in net profit to ₹295 million, compared to ₹SEK 294.8 million during the corresponding period last year.

The company, which operates in investments and financing, insurance broking, payment banking, payment aggregator/payment gateway services and asset management, saw its revenues rise to ₹SEK 449 million from ₹414 crore during the third quarter of the previous financial year.

Total costs also increased year-on-year ₹SEK 131 million compared to ₹99 crore in the same quarter a year ago.

JFSL reported an increase in its assets under management (AUM), which rose to ₹4,199 crore compared to ₹1,206 crore in the preceding September quarter of FY25. The company’s digital footprint grew in the December quarter, averaging 7.4 million monthly active users (MAUs) across all of its digital platforms, according to the company’s earnings filing.

The company also stated that it had secured a marketing tie-up with the MyJio app to boost customer acquisition in the short term. Additionally, Jio Payments Services Ltd. (JPSL) an online payment aggregator license.

Meanwhile, Jio Financial and BlackRock have agreed to form a joint venture (JV) to enter the asset management business and have applied for final approval. In mid-October, the joint venture filed with the Securities and Exchange Board of India (SEBI) to start a fund business (MF)..

This venture aims to operate in the wealth management business, starting with the establishment of a wealth management company and then expanding into a brokerage firm in India.

India’s wealth management and brokerage sector is experiencing significant growth, driven by the increasing number of demat accounts in recent years. Forecasts indicate promising future prospects for the wealth management industry, with expectations of a significant increase in high net worth individuals (HNIs) and ultra high net worth individuals (UHNIs) in India.

Stock down over 27% since May 2024

The stock has been on a downtrend since May 2024, losing 27.5% year-to-date and 31% from its peak in April at ₹394.70 each. Jio Financial Services Limited, formerly known as Reliance Strategic Investments Limited and the shared financial arm of Reliance Industries, entered the stock market on August 21, 2023.

The stock debuted with an initial listing price of ₹265 per share on BSE and ₹262 per share on the NSE, slightly above its discovered price of ₹261.85 each. At current levels, it is trading close to the listing price.

The company operates as a non-depository financial company (NBFC) specializing in retail lending, corporate lending, payments banking, payment solutions and insurance broking.

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