July 16, despite expectations of strong credit growth and interest income.
Jio Financial’s share price opened at ₹237.78, up from the last closing price of ₹236.59. It gained less than a per cent to reach the day’s high of ₹237.91 on the National Stock Exchange (NSE).
Jio Financial Q1 results preview
Analysts largely expect Jio Financial to see continued expansion in its lending and asset management businesses, though some impact on profit is likely due to continued losses from JV and associate entities.
According to analysts at Motilal Oswal Financial Services (MOFSL), Jio Financial’s Q1 net profit could grow by 13 per cent year-on-year (Y-o-Y) to ₹334 crore during the quarter under review. It sees the net interest income (NII) at ₹396 crore, up 50 per cent Y-o-Y, driven by strong AUM growth in Jio Credit.
Commentary on NBFC growth outlook and progress in other businesses is the key monitorable, said the brokerage.
Abhinav Tiwari, Research Analyst at Bonanza, expects NBFC AUM to increase to ₹300-330 billion from ₹257 billion in Q4FY26, supported by disbursements of ₹110 -125 billion, indicating sustained demand across lending segments.
Furthermore, Tiwari said that consolidated NII is likely to rise to ₹370-400 billion, but consolidated PAT is expected in the range of ₹250-320 crore, as elevated investments in new businesses, continued losses from JV and associate entities, and treasury income volatility may offset the strength in core operations.
“We will focus less on the headline profit and more on the pace of NBFC growth, treasury income trends, AMC business expansion, and any update on the broking business launch,” he added.
How to trade Jio Financial shares?
Shares of Jio Financial Services have been consolidating in the ₹247–229 range since June 15.
Despite this prolonged consolidation, the stock continues to trade below its key short- and long-term moving averages, reflecting a weak technical structure, said Sudeep Shah – Head of Technical and Derivatives Research at SBI Securities.
“The ADX remains flat, indicating a lack of trend strength and subdued volatility, while the MACD has also flattened, reinforcing the ongoing sideways momentum. A decisive breakout above 247 or breakdown below 229 is likely to determine the stock’s next directional move, with the upcoming results expected to act as a potential catalyst,” he added.
Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers’ discretion is advised.
