Whalesbook
Motilal Oswal Financial Services has begun covering Jio Financial Services (JFS) with a strong 'Buy' rating and a ₹320 target price, anticipating a 38% upside. This valuation currently excludes potential contributions from businesses still in early development, such as insurance manufacturing, wealth management, broking, and marketplace operations. JFS is set to leverage Reliance's vast resources, including its over 500 million Jio subscribers and the extensive retail network of Reliance Retail, enabling very low-cost customer acquisition.
Leveraging the Reliance Ecosystem
Unlike traditional lenders that face high costs to acquire customers, Jio Financial benefits from an easier entry into the daily digital lives of a large user base. Motilal Oswal expects the company to use its own artificial intelligence (AI) driven underwriting models, developed from telecom and retail data, to offer personalized risk assessments while adhering to regulations.
Strong Finances and Credit Expansion
The brokerage views Jio Financial's connection to Reliance as a significant advantage for accessing capital. A recent warrant issuance to the promoter group is set to inject about ₹15,700 crore in equity, bolstering the company's balance sheet and supporting long-term expansion. Jio Financial's cost of funds has averaged around 6.99%, backed by an AAA credit rating and diverse funding sources.
Jio Credit is projected to be the main driver of growth. Its assets under management (AUM) have risen roughly fivefold year-on-year to over ₹19,000 crore as of December 2025. This growth is largely from secured loans, including home loans, loan against property (LAP), and loan against securities (LAS). Maintaining asset quality is a key focus amid rapid balance sheet growth and the early stages of the loan portfolio. Motilal Oswal forecasts AUM to grow at a compound annual rate of 90% and profit after tax (PAT) to grow at 152% annually for Jio Credit between FY26 and FY28.
Diversified Ventures
Jio Payments Bank operates with a digital-first approach, supported by a wide distribution network. By December 2025, it served approximately 3.2 million customers across nearly 2.87 lakh banking correspondent (BC) points, extending financial services to rural and semi-urban areas.
The Jio BlackRock AMC joint venture, partnered with BlackRock, is designed as a technology-driven entity and has already attracted over 1 million investors in its first year. Jio Insurance Broking is positioned to tap into India's underpenetrated insurance market by working with life, health, and general insurers, aiming to grow its profitable non-captive business.