Jio Financial Services, a major player in India’s non-banking finance sector and owned by billionaire Mukesh Ambani, is all set to announce its third-quarter earnings for the financial year 2025. As anticipation builds ahead of the results, Jio Finance shares have gained slight momentum, trading at ₹279.05. However, the stock has experienced a significant drop of over 17% in the last month, highlighting the volatile nature of its recent performance.

The company has been facing pressure from market conditions but has also shown resilience, with a 15% gain on a year-over-year basis. Despite short-term volatility, Jio Financial Services has remained a prominent player in digital services, providing loans, insurance, and savings products to a broad customer base. Investors are keen to see how the company will navigate these market challenges in its upcoming financial disclosures.

Among recent developments, the company’s subsidiary, Jio Payment Solutions, received approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This is expected to open up new avenues for the company in the digital payment space, potentially contributing to future growth.

In Q2 FY25, Jio Financial Services reported a 14% rise in revenue, reaching ₹693.5 crore, signaling solid business growth in its operational areas. Despite increased expenses, the firm maintained profitability, with net profit rising by 3% to ₹689 crore. This performance gives hope that Jio Financial Services could rebound in Q3, especially considering its potential expansion into new markets like mutual funds and debt issuance.

The company is also exploring new ways to raise capital, including negotiations with lenders for its first local debt offering. The anticipated bond or loan offering could bolster its financial standing and allow further investments into its expanding business portfolio. Jio Financial Services also faces potential upgrades, with market analysts predicting its inclusion in the Nifty 50 index as part of an upcoming rebalancing, which could result in significant passive inflows into the stock.

Despite these positive developments, the company’s stock has faced some criticism, particularly in light of its lower return on equity (ROE), which stood at just 1.15% last year. This has raised concerns about the efficiency of capital utilization in generating profits. Nonetheless, experts are watching the stock closely for any signs of a turnaround, especially as technical charts show bullish patterns suggesting potential price recovery.

Investors are divided on whether to buy Jio Financial Services shares now, with some analysts recommending purchases on dips while others suggest waiting for clearer signals post-Q3 results. Key technical levels suggest that the stock might find support around ₹265, with an upside potential toward ₹290-295. For those willing to take a long-term view, analysts predict growth over the coming months.

Additionally, in the global business landscape, Jio Financial Services has also entered into a joint venture with BlackRock to expand into the mutual fund sector. This strategic partnership is expected to bring additional revenue streams and enhance the company’s position in the highly competitive investment management space.