On March 28, 2025, Jio Financial Share Price experienced a 1% jump following the parent company’s announcement of significant investments in its subsidiaries, Jio Finance Ltd (JFL) and Jio Payments Bank Ltd (JPBL). Jio Financial Services stated that these capital infusions aim to bolster their business operations and drive growth.
The investment included a substantial Rs 1,000.24 crore injected into Jio Finance (JFL), with JFSL acquiring 1.73 crore equity shares at the face value of Rs 10 each. Notably, JFSL clarified that this transaction was treated as a related party transaction, meaning no government approval was necessary for the deal.
In addition to the investment in JFL, JFSL also acquired 8.5 crore equity shares of Jio Payments Bank Ltd (JPBL) at the same face value of Rs 10 each. This investment of Rs 85 crores increased JFSL’s stake in JPBL from 82.17% to 85.04% as of March 28, 2025.
On that day, shares opened at Rs. 227.18, reached a day-high of Rs. 232.30, and a day-low of Rs. 226.11. By the market close at 15:59, JFSL shares traded at Rs. 227.51, reflecting a nearly 0.77% increase from the previous close of Rs. 225.78. The market capitalization at this time was reported at 144,540 crores, with an upper circuit limit of Rs. 248.35 and a lower circuit limit of Rs. 203.20.
Earlier in the year, Jio Financial Services released its third-quarter financial results on January 17, 2025, reporting a net profit of Rs. 294.78 crore. This marked a slight increase of 0.3% compared to the Rs. 293.82 crore profit from the previous third quarter. The company also recorded revenue from operations at Rs. 438.35 crores, while its net interest income (NII) fell to Rs. 205 crores, a 21.9% decrease year-over-year but a 2.5% increase quarter-over-quarter.
In recent developments, Jio Finance, a division of JFS, raised ₹10 billion at a yield of 7.80% in March 2025, marking its entry into the debt market with its first commercial paper offering. This move was made in anticipation of a scheduled bond offering to raise about ₹30 billion through five-year bonds with a suggested 7.75% coupon. However, Jio Finance opted to delay the bond sale to the next fiscal year, hoping for better market conditions following expected monetary policy changes by the Reserve Bank of India (RBI) due to high-yield demands from investors.
Market analysts have provided mixed opinions on JFSL shares. According to Trendlyne, the average target for Jio Financial Services Ltd. stands at 316.50, indicating a potential upside of 39.11% from its last price of 227.51. While some experts recommend buying or holding shares, 100% of analysts on MoneyControl suggest holding onto the shares for now. Investors are encouraged to consider the company's long-term performance and consult with financial analysts before making investment decisions.
Shifting focus to the broader Indian stock market, the financial year 2024-25 (FY25) proved challenging not only for Jio Financial but also for the country’s largest conglomerates, including those led by Mukesh Ambani, Gautam Adani, Kumar Mangalam Birla, and the Tata Group. According to an analysis by Mint, out of these four prominent conglomerates, only the Aditya Birla Group saw an increase in the combined market capitalization of its companies.
Out of the 40 companies within the Aditya Birla Group, 26 saw their share prices rise, while 14 faced declines. This resulted in an overall market cap increase of ₹1,45,495 crore during FY25. UltraTech Cement, the flagship firm of the group, experienced the highest market cap increase, rising by ₹57,680 crore as its shares rallied 18%. UBS has recently upgraded UltraTech's stock to 'buy,' raising the target price from ₹9,000 to ₹13,000, citing positive trends in the sector driven by structural cost savings and price stabilization.
Conversely, the Adani Group faced severe challenges, with none of its companies witnessing any increase in share prices. Adani Green, for instance, plummeted by 48% in FY25, resulting in a staggering ₹1,40,171 crore loss in market cap. The flagship company, Adani Enterprises, also suffered a wealth erosion of ₹96,093 crore, reflecting the scrutiny surrounding its business practices amid allegations of bribery and fraud.
The Reliance Group, under Mukesh Ambani, also saw significant market cap erosion, totaling ₹3,78,758 crore in FY25. Reliance Industries (RIL) emerged as the biggest wealth destroyer, with its share price dropping 14% in FY26, leading to a ₹2,88,633 crore hit to the group's market capitalization. This selloff was attributed to an earnings downgrade due to weaknesses in the refining and petrochemical sectors, alongside a slowdown in retail growth. However, experts remain optimistic about Reliance's long-term prospects, anticipating value unlocking in the retail business following the Q4 results.
In contrast, the Tata Group faced a mixed bag, with nine out of 25 companies seeing gains while 16 experienced declines. The overall market capitalization for the Tata Group fell by ₹2,58,770 crore during FY25. Notably, Tata Motors and Tata Consultancy Services (TCS) faced significant losses, with market cap reductions of ₹1,15,365 crore and ₹1,00,981 crore, respectively. Tata Motors shares fell by 32%, impacted by a slowdown in sales and tariffs imposed on auto imports, while TCS lost 19% amid fears of recession and reduced discretionary spending in the US.
As the financial landscape continues to evolve, investors are advised to stay informed and consult with certified experts before making any significant investment decisions. The ongoing fluctuations in market conditions highlight the importance of strategic planning and analysis in navigating the complexities of the stock market.
