Jio Financial Services shares fall 1% amid Jio Platforms listing | What should investors do? Check target, stop loss
Jio Financial Services share price fell over 1% in Wednesday's trading session amid Jio Platforms IPO listing. The Reliance stock opened at ₹207.24 apiece on NSE today and touched an intraday low of ₹204.16 on 28 October.
Meanwhile, Reliance-backed Jio Platforms’ ₹30,213-crore initial public offering (IPO) made its stock market debut on the BSE and NSE today, rewarding successful allottees with a listing gain of around 21%. The shares opened at ₹1,358 on both exchanges, compared with the IPO’s upper price band of ₹1,119 per equity share.
However, market experts believe the impact of the Jio Platforms IPO on Jio Financial Services shares is likely to be indirect rather than immediate.
“The Jio Platforms IPO may draw greater investor interest towards the broader Jio ecosystem, but its influence on Jio Financial Services is expected to be indirect. Jio Platforms’ telecom and digital services business operates on different earnings drivers than Jio Financial Services’ lending, payments and other financial services operations. Investors should therefore avoid assuming that the IPO alone will trigger a sustained rally in Jio Financial Services,” said Gaurav Garg, Head of Research at Lemonn.
Jio Financial Services posted a 51% year-on-year (YoY) drop in profit after tax (PAT) to ₹340 crore in Q2 FY27, compared with ₹695 crore in the corresponding quarter of the previous fiscal year.
Meanwhile, pre-provisioning operating profit (PPOP) climbed 85% YoY to ₹574 crore in the September quarter, up from ₹310 crore in Q2 FY26.
The company's total income more than doubled, rising 132% YoY to ₹1,699 crore in Q2 FY27 from ₹733 crore in the year-ago period.
Net interest income (NII) also recorded robust growth, surging 165% YoY to ₹680 crore during the quarter, compared with ₹257 crore in the corresponding quarter last year.
Garg advised existing investors with a medium- to long-term investment horizon to continue holding the stock, provided it aligns with their risk appetite. Fresh investors, meanwhile, should consider entering in phases during price corrections rather than buying solely on the back of sentiment surrounding the Jio Platforms IPO.
“The key factors to monitor are loan-book growth, asset quality, profitability and execution across Jio Financial Services’ businesses. While the Jio Platforms listing could boost sentiment across the broader ecosystem, Jio Financial’s long-term valuation will ultimately be driven by its own financial performance,” Garg said.
Meanwhile, Mahesh M. Ojha, VP – Research and Business Development at Kantilal Chhaganlal Securities, said Jio Financial Services shares are currently trading sideways, with no distinct chart pattern signalling a decisive price movement.
“The stock is not showing a strong bullish or bearish signal at the moment. Investors may need to wait for a clear breakout or breakdown to gauge its next potential move. Until a decisive trend emerges, the stock is likely to trade within a range,” Ojha said.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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HomeMarketsStock MarketsJio Financial Services shares fall 1% amid Jio Platforms listing | What should investors do? Check target, stop loss
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