Reliance Industries share price target: Jio Financial Services Shines with Dividend News and Growth Potential

In the ever-evolving landscape of Indian business, Reliance Industries Limited (RIL) continues to dominate headlines with its robust financial performance and strategic vision. The company’s Q4 2025 results, announced on April 25, 2025, have sparked widespread interest among investors, analysts, and market enthusiasts. Coupled with the stellar performance of its subsidiary, Jio Financial Services Limited (JFSL), and the announcement of its first-ever dividend, the spotlight is firmly on Reliance’s ability to deliver consistent growth in a challenging global environment. This article dives deep into RIL’s Q4 2025 performance, JFSL’s latest achievements, and the public investment trends shaping the future of this financial powerhouse.

Understanding Reliance Industries’ Q4 2025 Performance

Reliance Industries, under the leadership of Chairman and Managing Director Mukesh Ambani, has solidified its position as India’s largest conglomerate. The Q4 2025 results reflect the company’s resilience in navigating macroeconomic headwinds and geopolitical uncertainties. Let’s break down the key financial highlights.

Consolidated Profit Growth

Reliance Industries reported a consolidated net profit of ₹19,407 crore for the March 2025 quarter, marking a 2.41% year-on-year (YoY) increase from ₹18,951 crore in Q4 FY24. While the growth may seem modest, it underscores the company’s ability to maintain stability in a volatile global market. The profit growth was driven by strong performances in the digital services (Jio Platforms) and retail segments, despite challenges in the oil-to-chemicals (O2C) business.

Revenue Surge

The company’s consolidated revenue from operations soared by 10% YoY, reaching ₹64,573 crore compared to ₹58,475 crore in the same quarter last year. This growth reflects Reliance’s diversified business model, with significant contributions from Jio Platforms and Reliance Retail. The full-year revenue for FY25 climbed to ₹98,136 crore, up from ₹94,720 crore in FY24, showcasing consistent year-on-year progress.

EBITDA and Margins

Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 3.6% YoY to ₹48,737 crore, compared to ₹47,050 crore in Q4 FY24. However, the EBITDA margin contracted by 90 basis points to 16.9% from 17.8% in the previous year, primarily due to increased operating expenses, which rose to ₹4,375 crore from ₹3,529 crore. Despite the margin pressure, Reliance’s focus on operational efficiency helped sustain profitability.

Dividend Declaration

The board of directors recommended a final dividend of ₹5.50 per equity share for FY25, signaling confidence in the company’s cash flow and long-term growth prospects. This dividend, subject to shareholder approval, will be paid following the Annual General Meeting (AGM), the date for which will be announced soon. Additionally, Reliance plans to raise ₹25,000 crore through private placement of convertible or debt bonds, further strengthening its financial flexibility.

Mukesh Ambani’s Vision

In a statement accompanying the results, Mukesh Ambani highlighted the challenges of FY25, including weak macroeconomic conditions and a shifting geopolitical landscape. He emphasized that Reliance’s focus on operational discipline, customer-centric innovation, and meeting India’s growth needs enabled the company to deliver a stable financial performance. Notably, Reliance became the first Indian company to surpass a net worth of ₹10 lakh crore, a milestone that underscores its market dominance and investor confidence.

Jio Platforms: A Digital Powerhouse

Jio Platforms, Reliance’s digital services arm, emerged as a key driver of growth in Q4 2025. The telecom giant reported a 25.7% YoY surge in profit after tax (PAT), reaching ₹7,022 crore, up from ₹5,587 crore in Q4 FY24. For the full year, Jio’s PAT grew by 22% to ₹26,120 crore, compared to ₹21,434 crore in FY24. Let’s explore the factors behind Jio’s stellar performance.

Subscriber Growth and 5G Adoption

Jio’s subscriber base expanded to 488 million by March 2025, reflecting a 1.3% YoY increase. Of these, 191 million subscribers are on the True5G network, highlighting the rapid adoption of 5G services. The company’s focus on expanding its 5G footprint and home broadband services has fueled subscriber growth, positioning Jio as a leader in India’s digital transformation.

ARPU Boost

The average revenue per user (ARPU) climbed to ₹206.2 in Q4 2025, a 13.5% YoY increase from ₹181.7 in Q4 FY24. On a quarter-on-quarter basis, ARPU rose from ₹203.3 in Q3 FY25, driven by tariff hikes implemented in July 2024 and a growing base of high-value 5G subscribers. This ARPU growth underscores Jio’s ability to monetize its services effectively.

Data Consumption and Traffic

Jio reported a monthly per-subscriber data consumption of 33.6 GB, with data traffic growing by 19.6% YoY in Q4 2025. The surge in data usage reflects the increasing reliance on Jio’s network for streaming, gaming, and remote work, further solidifying its position as India’s leading telecom provider.

Revenue and EBITDA Margin

Jio Platforms’ quarterly revenue reached ₹39,853 crore, up 17.8% YoY, driven by subscriber additions, ARPU growth, and the scale-up of digital services. The EBITDA margin improved significantly, jumping by 19% to ₹17,600 crore from ₹14,360 crore in Q4 FY24, reflecting operational efficiency and strong demand for Jio’s services.

Strategic Initiatives

Jio is actively working on building large-scale AI infrastructure and services, aiming to add an intelligence layer to its offerings. The recent launch of JioHotstar, following the merger of JioCinema and Disney Hotstar on February 14, 2025, has been a game-changer. JioStar, the media joint venture with Walt Disney, reported revenues of ₹10,006 crore and pre-tax earnings of ₹774 crore, with JioHotstar crossing 100 million paid users within five weeks.

Jio Financial Services: A Rising Star

Jio Financial Services Limited (JFSL), carved out from Reliance Industries in 2023, has emerged as a trailblazer in India’s financial services sector. The company’s Q4 FY25 results, announced on April 17, 2025, showcased its growth trajectory and strategic ambitions. Here’s a detailed look at JFSL’s performance and prospects.

Q4 Financial Highlights

JFSL reported a consolidated net profit of ₹316.11 crore for the March 2025 quarter, a 1.76% YoY increase from ₹310.63 crore in Q4 FY24. While profit growth was modest, the company’s revenue from operations surged by 18% YoY to ₹493.2 crore, up from ₹418.1 crore in the same quarter last year. Total income rose to ₹518 crore from ₹418 crore, driven by strong growth in lending, leasing, and digital financial services.

Assets Under Management (AUM) Surge

A standout achievement for JFSL was the exponential growth in its assets under management (AUM), which soared to ₹10,053 crore as of March 31, 2025, from just ₹173 crore at the end of FY24. This remarkable 5,680% jump was fueled by JioFinance Limited (JFL), which expanded its lending and leasing operations across 10 tier-1 cities. The focus on secured lending, particularly loans against mutual funds, has strengthened JFSL’s loan book and positioned it for future growth.

First-Ever Dividend

JFSL’s board recommended its first-ever dividend of ₹0.50 per equity share (face value ₹10) for FY25, a move that signals confidence in the company’s financial health and long-term prospects. The record date for the dividend is yet to be announced, but the declaration has already sparked investor interest. Market participants view the dividend as a testament to JFSL’s robust balance sheet and growth potential.

Business Diversification

JFSL operates as a Core Investment Company (CIC) registered with the Reserve Bank of India, with a diversified portfolio spanning investing and financing, insurance broking, payment banking, payment aggregation, and asset management. Through its JioFinance app, the company offers digital solutions such as loans, savings accounts, UPI bill payments, recharges, digital insurance, and financial tracking tools. Strategic partnerships, including a joint venture with BlackRock for asset management and wealth management, further enhance JFSL’s market positioning.

Dividend Income from RIL

JFSL’s subsidiary, Reliance Industrial Investments and Holdings Limited (RIIHL), holds 48,18,84,012 shares of Reliance Industries. In FY25, JFSL earned ₹241 crore in dividend income from these shares, up from ₹217 crore in FY24. Notably, ₹235 crore of this income was generated in Q2 FY25 alone, highlighting the company’s ability to leverage its stake in RIL for steady cash flows.

Operational Milestones

JFSL’s Jio Payments Bank Limited, a joint venture with the State Bank of India, expanded its network to over 14,000 Business Correspondents (BCs) in FY25, a six-fold increase from the previous year. The bank served 2.31 million customers as of March 31, 2025. Additionally, JFSL filed applications with the Securities and Exchange Board of India (SEBI) for registration as an investment advisor and for a broking license through Jio BlackRock Broking Pvt Ltd, signaling its intent to expand into new financial services verticals.

Public Investment Trends in Jio Financial Services

JFSL’s growth story has captured the attention of investors, with shifting shareholding patterns reflecting evolving market sentiment. Let’s analyze the public investment trends in JFSL as of March 2025.

Promoter Holding

The promoter holding in JFSL remained unchanged at 47.12%, reflecting the strong backing of Reliance Industries. This stability underscores the company’s strategic importance within the Reliance ecosystem and its long-term growth potential.

Foreign Institutional Investors (FIIs)

FIIs have significantly reduced their stake in JFSL over the past year. As of March 2024, FIIs held 19.45% of the company, but this declined steadily to 11.66% by March 2025. The sell-off, particularly pronounced in the December 2024 and March 2025 quarters, suggests that FIIs are adopting a cautious approach, possibly due to market volatility or profit-booking after JFSL’s initial listing rally.

Domestic Institutional Investors (DIIs)

In contrast, DIIs have shown increasing confidence in JFSL. Their holding rose from 12.6% in March 2024 to 14.3% in March 2025, with a notable increase in the December 2024 and March 2025 quarters. This uptick reflects DIIs’ belief in JFSL’s diversified business model and its potential to capitalize on India’s growing financial services market.

General Public

The general public’s investment in JFSL has seen a remarkable surge, with their shareholding rising from 20.83% in March 2024 to 26.92% in March 2025. This steady increase, particularly in the December 2024 and March 2025 quarters, indicates strong retail investor confidence in JFSL’s growth prospects. The company’s innovative 5,680% AUM surge, first-ever dividend, and association with the Reliance brand have likely fueled this enthusiasm.

Fundamental Analysis of Jio Financial Services

To understand JFSL’s investment appeal, let’s examine its key financial metrics as of March 2025.

• Return on Capital (ROC): 1.53%, indicating moderate efficiency in utilizing capital.
• Price-to-Earnings (P/E) Ratio: 111.85, significantly higher than the industry P/E of 20.15, suggesting that the stock is trading at a premium due to high growth expectations.
• Price-to-Book (P/B) Ratio: 1.33, indicating that the stock is reasonably valued relative to its book value.
• Debt-to-Equity Ratio: 0.03, reflecting a strong balance sheet with minimal leverage.
• Return on Equity (ROE): 1.31%, suggesting modest profitability relative to shareholders’ equity.
• Earnings Per Share (EPS): ₹2.54, reflecting steady earnings growth.
• Book Value: ₹199.38, indicating a solid asset base.
• Dividend Yield: 0.19% (based on the ₹0.50 dividend), offering a modest income stream.

While JFSL’s P/E ratio is high, its diversified business model, low debt, and growth-oriented strategy justify the premium valuation. The company’s focus on digital innovation, strategic partnerships, and scalability positions it as a compelling long-term investment.

Market Sentiment and Stock Performance

JFSL’s stock performance has been mixed, reflecting broader market dynamics. On April 21, 2025, the stock gained 1.5% to ₹250 following the Q4 results and dividend announcement, but it closed at ₹246.25 on April 25, down 0.08%. Over the past six months, the stock has corrected by 24.71%, indicating volatility. However, analysts remain bullish, with price targets ranging from ₹280 to ₹298, citing JFSL’s strong fundamentals and growth potential.

The stock is trading above its 5-day, 10-day, 20-day, and 50-day simple moving averages (SMAs) but below its 100-day, 150-day, and 200-day SMAs, suggesting a potential bottoming out after a prolonged correction. With a one-year beta of 1.4, the stock exhibits higher-than-average volatility, appealing to risk-tolerant investors.

Why Invest in Jio Financial Services?

JFSL offers a compelling investment case for several reasons:

1. Diversified Revenue Streams: JFSL’s operations span lending, insurance broking, payment banking, and wealth management, reducing risk and ensuring multiple income sources.
2. Digital Innovation: The JioFinance app aligns with India’s digital transformation, offering cutting-edge solutions that attract a growing customer base.
3. Strong Parentage: As a Reliance Industries subsidiary, JFSL benefits from the conglomerate’s financial strength and market reputation.
4. Growth Potential: The 5,680% AUM surge and partnerships with global giants like BlackRock position JFSL for exponential growth.
5. Dividend Income: The first-ever dividend of ₹0.50 per share enhances total returns, with potential for higher payouts as profitability improves.

Risks to Consider

While JFSL presents significant opportunities, investors should be aware of potential risks:

• High Valuation: The elevated P/E ratio suggests that the stock is priced for perfection, leaving limited room for error.
• Market Volatility: Geopolitical tensions, such as India-Pakistan relations, and broader market corrections could impact short-term performance.
• FII Sell-Off: The significant reduction in FII holding may signal caution among global investors, potentially affecting stock liquidity.
• Regulatory Risks: As a financial services company, JFSL is subject to stringent regulations, which could impact operations or profitability.

Strategic Outlook for Reliance and Jio Financial Services

Looking ahead, Reliance Industries and Jio Financial Services are well-positioned to capitalize on India’s economic growth and digital transformation. Reliance’s focus on renewable energy, 5G rollout, and potential IPOs for Jio and Reliance Retail will drive long-term value creation. JFSL, with its scalable business model and innovative offerings, is poised to become a leader in India’s financial services sector.

Investors should monitor key developments, including:

• Jio’s IPO Timeline: Analysts expect Jio to list in 2025, potentially unlocking significant value for Reliance shareholders.
• Retail Expansion: Reliance Retail’s growth strategy and potential IPO could further boost the conglomerate’s market cap.
• JFSL’s AUM Growth: Continued expansion of the loan book and new verticals like investment advisory and broking will enhance JFSL’s revenue streams.
• Global Economic Trends: Macroeconomic conditions and geopolitical stability will influence Reliance and JFSL’s performance in FY26.

Conclusion: A Compelling Investment Opportunity

Reliance Industries’ Q4 2025 results and Jio Financial Services’ remarkable growth underscore their pivotal roles in India’s economic landscape. RIL’s diversified portfolio, stable financial performance, and historic ₹10 lakh crore net worth milestone make it a cornerstone of Indian business. JFSL, with its 5,680% AUM surge, first-ever dividend, and digital-first approach, offers investors a unique blend of growth, income, and stability.

For investors seeking exposure to India’s digital and financial services boom, JFSL presents a high-conviction opportunity, backed by Reliance’s unmatched market reputation. However, prudent investors should conduct thorough research and consult financial advisors to align investments with their risk tolerance and goals. As Reliance and JFSL continue to innovate and scale, they are set to redefine India’s corporate landscape, delivering value to stakeholders for years to come.

Disclaimer: The information provided in this article is for educational purposes only and does not constitute financial advice. Always consult a certified financial advisor before making investment decisions.