Jio Financial Services vs. Reliance – Reliance Industries Ltd. (RIL) and Jio Financial Services Ltd. (JFSL), both owned by Mukesh Ambani, released their Q1 2025 results last week; as a result, Monday is anticipated to see further attention paid to these equities. Reliance missed its O2C earnings, but Jio Financial Services reported impressive Q1 2025 numbers. RIL has, however, provided solid guidance following the Q1 results.
Following the announcement of their separate Q1 results over the weekend, stock market analysts predict that both bulls and bears will continue to monitor the values of Reliance and Jio Financial shares. They claimed that while both equities are sound fundamentally for long-term investors, the RIL share price may outperform the Jio Financial share price surge for short-term investors.
Shares of Jio Financial Services against Reliance
Anshul Jain, Head of Research at Lakshmishree Investment, commented on what the technical chart indicates regarding these Mukesh Ambani-owned stocks: “Jio Financial is currently trading within a key resistance zone of ₹324 to ₹347.” The stock is exhibiting bullish accumulation rather than retreating under intense overhead pressure. Volume is continuously dropping, which frequently comes before a breakout following consolidation. However, based on price activity, a range-bound phase may last for the following eight to ten weeks.
On the other side, the price of Reliance shares has obviously rejected the ₹2,532 resistance zone. The stock is probably going to test significant liquidity between ₹2,414 and ₹2,392 because there isn’t any strong buying activity at these levels. As it gets closer to that demand zone, this makes the price of RIL shares a more alluring buy on dips wager, according to Anshul Jain.
Review of Reliance Q1 performance for 2025
Sabri Hazarika, Senior Research Analyst at Emkay Global Financial Services, reviewed RIL’s Q1 results for the first quarter of the current fiscal year and stated, “RIL suffered a 5%/7% consol EBITDA/APAT miss in Q1FY26 at Rs429/181bn, resp. This is because Jio and Upstream EBITDA came in at a 2% beat apiece, but O2C/retail EBITDA was 6%/5% lower than anticipated. While retail experienced a seasonal impact on electronics, with overall revenue/EBITDA up 11%/13% YoY, albeit on a low basis, O2C was primarily impacted by turnaround efforts.The addition of Jio subscribers was better at 9.9 million, while ARPU increased by 1% to Rs208.8. Capex was Rs299 billion, and net debt was steady QoQ at Rs1.18 trillion. Refinery closures in the West will support O2C, Retail and Jio will likely accelerate (to achieve 2x EBITDA in 4-5Y across the group), and the new energy ecosystem will fully operationalize in 4-6 quarters with partnerships and a self-funded model in a few years, according to the management’s optimistic outlook despite the poor results.For Q3FY26E, we account for a Jio tariff increase and increase O2C earnings, resulting in a larger GRM. We increase TP to Rs1,600 and FY26/27E EPS by 4/7%, with some growth in the target multiple of New Energy and Other segments. Since the stock has performed well over the past three months, we still recommend buying, even if we are looking for better entry positions.
Review of Jio Financial Services’ Q1 2025 performance
“Jio Financial Services Limited (JFSL) delivered a strong performance in Q1 FY26, with consolidated total income rising 48% YoY to ₹619 crore, driven by robust growth across its diversified business segments,” said Seema Srivastava, Senior Research Analyst at SMC Global Securities, in reference to the Jio Financial Services Q1 results 2025. Notably, business net income increased by about four times year over year to ₹219 crore, or around 40% of total net income, indicating increased core operational efficiency.Indicating strict cost control, the company’s pre-provisioning operating profit increased 8% YoY to ₹366 crore, while its profit after tax was at ₹325 crore, up 4% YoY. Jio Credit Limited (JCL) was the best performance; because to a credit-conscious strategy and profitable market borrowings at attractive rates, its AUM soared to ₹11,665 crore from just ₹217 crore a year ago.
