UPDATE 1 — India's Jio Financial Services falls after quarterly profit halves
(Adds details and background from paragraph 3) Oct 16 (Reuters) — Shares of India's Jio Financial Services fell more than 2% on Friday and were among the top losers on the Nifty 50, after the non-bank lender reported a sharp drop in its second-quarter profit. The stock was last trading 1.7% lower at 215.2 rupees, as of 9:52 a.m. IST. The company, which was listed in 2023 following its demerger from billionaire Mukesh Ambani's Reliance Industries, said net profit after tax fell 51%, primarily due to the absence of a one-time dividend income benefit of 2.69 billion rupees recorded in the year-earlier period. Since the demerger, it has been steadily expanding across lending, payments, insurance distribution and asset management, leveraging the broader Reliance and Jio ecosystem to scale its businesses. Brokerage Motilal Oswal said both profit and profit before tax missed its expectations, hurt by higher costs and some one-off items. It cut its fiscal 2027 earnings-per-share estimate by 6.6% to factor in expected higher provisions. Reliance Industries' digital arm Jio Platforms is set to open its IPO on October 21. The telecom operator is seeking a valuation of almost $108.3 billion. (
(Adds details and background from paragraph 3) Oct 16 (Reuters) — Shares of India's Jio Financial Services fell more than 2% on Friday and were among the top losers on the Nifty 50, after the non-bank lender reported a sharp drop in its second-quarter profit. The stock was last trading 1.7% lower at 215.2 rupees, as of 9:52 a.m. IST. The company, which was listed in 2023 following its demerger from billionaire Mukesh Ambani's Reliance Industries, said net profit after tax fell 51%, primarily due to the absence of a one-time dividend income benefit of 2.69 billion rupees recorded in the year-earlier period.
Since the demerger, it has been steadily expanding across lending, payments, insurance distribution and asset management, leveraging the broader Reliance and Jio ecosystem to scale its businesses. Brokerage Motilal Oswal said both profit and profit before tax missed its expectations, hurt by higher costs and some one-off items. It cut its fiscal 2027 earnings-per-share estimate by 6.6% to factor in expected higher provisions. Reliance Industries' digital arm Jio Platforms is set to open its IPO on October 21.
The telecom operator is seeking a valuation of almost $108.3 billion. (Reporting by Mridula Kumar in Bengaluru; Editing by Subhranshu Sahu) ((mridula.kumar@thomsonreuters.com)