Credit-led scale-up continues; newer businesses ramp up
Valuation and view
JIOFIN reported a mixed performance, with the NBFC segment scaling well and AUM crossing INR 250bn; however, other segments witnessed slower traction, while overall profitability remained impacted by continued investments in new businesses and the impact on the treasury book amid macro volatility.
JIOFIN offers a compelling long-term runway for growth, supported by the breadth of its financial services platform and multiple embedded value-creation levers. While current valuations reflect a part of the medium-term growth potential, we believe they do not fully capture the scale opportunity across lending, asset management, insurance, and digital financial services as these businesses transition from incubation to meaningful profitability.
JIOFIN trades at 1x FY27E P/BV. We model a consolidated PAT CAGR of 50% over FY26-FY28 and reiterate our BUY rating on the stock with a TP of INR315 (based on Mar’28E SoTP). Our SoTP does not factor in valuation from businesses like insurance manufacturing, wealth management, broking, and marketplace, which are still in their incubation phase.
