Jio Financial Services launches a broking subsidiary, Jio BlackRock Broking, but faces weaker stock performance with flat Q3 profits amid rising expenses.
Jio Financial Services Ltd., a major player in the Indian financial sector, announced the establishment of a wholly owned subsidiary, Jio BlackRock Broking Private Limited, which will engage in broking activities. The company revealed this move in a filing with the exchange on January 20, 2025, though the venture is subject to regulatory approvals.
This step marks a strategic expansion for Jio Financial Services into the broking sector through a joint venture with global investment management firm BlackRock. Both companies have made an initial investment of ₹3 crore each in Jio BlackRock Investment Advisers Private Limited, the entity under which the broking arm will operate. The joint venture was incorporated in September 2024.
Flat Q3 Profit Amid Rising Expenses
In addition to the launch of the new subsidiary, Jio Financial Services reported a flat consolidated net profit of ₹295 crore for the third quarter of the 2024 fiscal year, ending December. This was slightly up from ₹294 crore in the same quarter the previous year. The company’s total income for the quarter grew to ₹449 crore, up from ₹414 crore in the year-ago period, while expenses increased from ₹99 crore to ₹131 crore year-on-year.
Despite this minor profit increase, Jio Financial’s share price faced downward pressure, opening at ₹277.25 per share on the Bombay Stock Exchange (BSE). During the day, the stock touched a high of ₹277.55 but dropped to a low of ₹265.55 per share, reflecting investor uncertainty.
Stock Performance and Market Outlook
Analysts have expressed caution regarding Jio Financial’s stock, noting a decline in its momentum. Prashanth Tapse, Senior Vice President of Research at Mehta Equities, highlighted that the stock is experiencing “weaker signs” in the market and suggested waiting for clearer signals before making aggressive moves. With Indian markets showing volatility, particularly in the midcap and small-cap sectors, the stock is expected to hover between ₹255-260 levels unless it surges past ₹280 on a weekly basis.
This mixed performance comes as Jio Financial Services expands its operations, tapping into the lucrative broking space in India while facing challenges related to rising expenses and a volatile market environment.
