Jio Financial Services Ltd Management Discussions

JFSL Annual Report FY26

Company Overview

Jio Financial Services Limited (JFSL, the Parent, the Company, the Holding Company), with Corporate Identity No. L65990MH1999PLC120918, was incorporated on July 22, 1999, in Mumbai. JFSL is a Core Investment - non-deposit-taking - systemically important Company (CIC), registered with the Reserve Bank of India.

As a CIC, JFSL is a holding company and operates its financial services business through its subsidiaries and joint ventures, catering to the four core financial needs of a customer: Need to

Borrow, Invest, Transact and Protect.

JFSLs subsidiaries include:

1. Jio Credit Limited (formerly known as Jio Finance Limited)

2. Jio Leasing Services Limited

3. Jio Insurance Broking Limited

4. Jio Payment Solutions Limited

5. Jio Finance Platform and Service Limited

6. Jio Payments Bank Limited

7. Jio Alternative Investment Manager Limited (to act as an investment manager to the Alternative Investment Fund to be set up by the Company subject to regulatory approvals)

JFSLs joint ventures include:

1. Reliance International Leasing IFSC Limited - JV between Jio Leasing Services Limited and Reliance Strategic Business Ventures Limited.

2. Jio BlackRock Asset Management Private Limited and Jio BlackRock Trustee Private Limited - JVs with BlackRock Financial Management Inc. for the asset management business.

3. Jio BlackRock Investment Advisers Private Limited - JV with BlackRock Advisors Singapore Pte. Ltd. for wealth management.

4. Jio BlackRock Broking Private Limited - wholly owned subsidiary of Jio BlackRock Investment Advisers Private Limited for broking business.

5. Allianz Jio Reinsurance Limited - JV with Allianz Group, through its wholly-owned subsidiary Allianz Europe B.V., for reinsurance.

6. Jio Allianz General Insurance Limited - JV with Allianz Group, through its wholly-owned subsidiary Allianz Europe B.V., for general insurance and health insurance in India.*

Macroeconomic Overview

In FY 2025-26, the global economy showed cautious stabilisation amid policy uncertainty and trade fragmentation. Reflecting this evolving landscape, the IMFs April 2026 projections recalibrated global real GDP growth estimates to 3.1% in 2026 from 3.3%, underscoring a moderation in advanced economies contrasted by resilient emerging markets. Escalating protectionism in the West coupled with the conflict in West Asia has impacted global value and supply chains and commodity prices, allowing hubs in the Indian subcontinent and Southeast Asia to absorb redirected capital and ensure operational continuity.

AI integration emerged as a primary macroeconomic growth engine, driven by significant capex in digital infrastructure and semiconductors. Widespread commercial deployment of generative AI is creating tangible productivity gains in knowledge-intensive sectors. While broader productivity improvements will fully materialise over the next decade, immediate AI investments are cushioning the global economy against industrial slowdowns, benefiting digitally entrenched jurisdictions.

Amid this global environment, India remained a primary macroeconomic growth driver, supported by fiscal discipline, infrastructure investment and digital expansion. Per the Second

Advance Estimates (2022-23 base year), real GDP grew 7.6%, while nominal GDP expanded 8.6% to 345 lakh crore. Average headline CPI inflation moderated to 1.7% (April December 2025) due to food and fuel disinflation. This provided the RBI flexibility to reduce benchmark repo rates by 100 bps to 5.25% during the fiscal year, structurally lowering capital costs and expanding retail credit affordability.

However, the final quarter of the fiscal year witnessed a structural reversal in this easing trend, as escalating global supply chain frictions and hardening commodity costs pushed retail inflation back up to 3.4% by March 2026 prompting the central bank to halt further rate cuts and monitor the evolving macroeconomic scenario.

Indias macroeconomic stability earned a sovereign credit rating upgrade to BBB by S&P Global Ratings the first in over 18 years - lowering international borrowing costs for corporates. The Union Budget FY 2026-27 balances consolidation with aggressive capital formation, targeting a fiscal deficit of 4.3% of GDP. The new

Infrastructure Risk Guarantee Fund de-risks mega-projects, driving systemic corporate credit demand. Concurrently, developing City Economic Regions in Tier-II and Tier-III cities widens the economic base, accelerating nationwide demand for consumer credit and wealth management, setting the stage for financial sector expansion.

While India is uniquely positioned for sustained growth, the evolving geopolitical situation in West Asia remains a critical variable. These escalating tensions drove a steep increase in treasury yields in late

March 2026. Sustained conflict in the region threatens to disrupt global commodity networks, creating external pressures that could influence the broader macroeconomic environment and adversely impact near-term growth expectations.

Financial Services Overview

Indias mature Digital Public Infrastructure (DPI) and modern regulatory frameworks continue to accelerate the adoption of financial services across the country. The Unified Lending

Interface (ULI) and Account Aggregator networks have enabled the digitisation of financial records, enabling frictionless, paperless credit delivery. This is safeguarded by the Digital Personal Data Protection (DPDP) Act, providing secure, consent-driven data governance. Consequently, formal credit penetration deepened. While Indias household debt-to-GDP ratio stood at approximately

40%, it remains structurally sound and lower than advanced peers, offering substantial, low-risk headroom for retail credit.

Capitalising on these structural shifts and the wealth of secure data generated by the DPI, the financial services industry is primed to unlock the true potential of AI. Financial institutions can now leverage autonomous agents to streamline workflows and eliminate operational redundancies. Concurrently, deploying AI-driven, multilingual conversational interfaces enables the hyper-personalisation of insurance, credit and wealth management solutions across diverse demographics. This dual technological approach not only deepens retail penetration but also structurally lowers customer acquisition and operating costs.

Non-Banking Financial Companies (NBFCs)

The NBFC sector remains a critical credit engine, driven by a surge in housing demand and urbanisation in Tier II and Tier III cities.

Following early FY 2025-26 asset quality stress in unsecured retail segments, NBFCs strategically pivoted toward secured, asset-backed lending and enterprise credit.

This transition relies on resilient household balance sheets. According to the Financial Stability Report (December 2025), while Indias household debt-to-GDP ratio stood at 41.3% in March 2025, the underlying composition of this credit remains structurally sound. As of end-September 2025, a clear majority of 54% of household borrowings actively funds accretive avenues: 36.2% for asset creation (housing, two-wheeler and vehicle loans) and 17.8% for productive usage (agriculture, business, education). Leveraging this low-risk headroom, NBFCs are aggressively expanding property-backed mortgages, vehicle finance and MSME credit, successfully insulating portfolios from unsecured retail volatility.

Payment Solutions and Payment Banks

Indias digital payment ecosystem is scaling exponentially, cementing its position as a global leader in real-time transactions.

The Unified Payments Interface (UPI) remains the undisputed anchor of this transformation. In mid-2025, UPI became the worlds largest real-time payment system, processing over 640 million daily transactions. This momentum continued during the year as UPI recorded 22.6 billion transactions - averaging over 730 million daily with a total value exceeding 29.5 lakh crore in March

2026. Building on this solid foundation, the trajectory for future growth remains strong. According to PwCs The Indian Payments Handbook 2025-2030, domestic digital payment volumes are projected to reach 617 billion by FY 2029-30, with total transaction values surpassing 907 lakh crore.

In addition to the foundational digital infrastructure, this exponential growth is propelled by deep-tech integration and advanced interoperability. In the consumer segment, the rapid adoption of

AI-driven conversational payments and offline solutions such as UPI Lite X and NFC-based Tap & Pay - are actively capturing the next wave of non-metro users and dominating high-frequency transit use cases. Concurrently, the B2B and merchant acquiring landscape has evolved far beyond basic QR and POS deployment to deep embedment within the broader ecosystem. By integrating payment rails directly into corporate ERP systems for automated reconciliation and leveraging programmable payments via the expanding retail Central Bank Digital Currency (e ), the industry is successfully migrating complex, high-value corporate supply chain and institutional flows into the formal digital ecosystem, structurally expanding well beyond retail micro-transactions.

At the critical last mile, Payments Banks have emerged as the structural backbone of Indias financial inclusion mandate. By facilitating massive volumes of government-to-person (G2P) transactions via Direct Benefit Transfers (DBT) and leveraging the

Aadhaar Enabled Payment System (AePS), these institutions ensure the secure, leak-proof delivery of subsidies directly to unbanked demographics. Beyond foundational inclusion, their growth is increasingly driven by deep integration into transit ecosystems. The national push toward interoperable mobility solutions like FASTag and MLFF tolling positions these banks as primary custodians of everyday micropayments.

Because Payments Banks are structurally prohibited from direct lending, their transition toward sustainable profitability relies entirely on their capacity to drive robust cross-selling. By leveraging their expansive digital platforms and Business Correspondent

(BC) networks for highly targeted distribution, Payments Banks are successfully maximising customer lifetime value, combating transaction margin compression and establishing lucrative, fee-based revenue streams. This strategic pivot fundamentally transforms them from transaction facilitators into highly profitable ecosystem enablers.

Insurance

Indias insurance sector is undergoing a structural shift characterised by a persistent gap between premium growth and actual population coverage. According to the latest IRDAI Annual Report (FY 2024-25), overall insurance penetration remained stagnant at 3.7% of GDP

with non-life insurance flat at 1.0% and life insurance marginally declining to 2.7% - even as total life insurance premiums rose 6.7% to 8.86 lakh crore. Within the non-life space, health insurance accounted for 41% of total premium followed by the motor segment at 32%. This statistical divergence underscores a critical industry mandate: to achieve sustainable growth, insurers must aggressively pivot from ticket-size-led revenue toward expanding actual retail policy volumes to penetrate Indias vast missing middle.

To bridge this penetration gap, the industry is leveraging powerful new structural drivers. The September 2025 elimination of the 18% GST on individual life and health insurance serves as a historic tailwind. By structurally lowering out-of-pocket costs, this reform drastically improves renewal rates among price-sensitive cohorts and prompts consumers to redirect tax savings toward higher sums insured, upgrading their protection against medical inflation.

This newfound affordability synergises perfectly with the landmark

Sabka Bima Sabki Raksha Act, 2025. Capitalising on the Acts 100% FDI provision, insurers are deploying fresh foreign capital to aggressively upgrade digital distribution via the unified Bima Sugam platform. By combining this zero-tax advantage with simplified

use-and-file product approvals and AI-driven, usage-based insurance (UBI) models, the sector is successfully democratising access, rebuilding retail engagement and decisively accelerating the national Insurance for All by 2047 mandate.

Asset Management, Wealth Management and Broking

Indias Financialisation of Savings is accelerating rapidly. According to the Economic Survey 2025 26, the share of equity and mutual funds in household financial savings surged from 2% in FY 2011-12 to over 15% in FY 2024-25. This structural shift pushed national Demat accounts past 21.6 crore - with 2.35 crore added in FY

2025-26 alone (up to Dec 2025) and drove the unique investor base beyond 12 crore, nearly a quarter of whom are women.

Driven by digital wealth-tech, the asset management sector mirrored this expansion. By December 2025, mutual fund unique investors reached 5.9 crore, with a significant 3.5 crore originating from non-Tier-I and Tier-II cities. Systematic Investment Plans (SIPs) anchor this democratisation, sustaining average monthly inflows over 29,000 crore in FY 2025-26.

The regulatory and wealth management landscapes are evolving to support this unprecedented scale. The landmark Securities Markets Code Bill, 2025, consolidates legacy laws, eases compliance and strengthens retail protection. Concurrently, SEBIs introduction of

Life Cycle Funds featuring automated, tax-efficient 5-to-30-year asset allocation glide paths - fosters goal-based investing.

Leveraging these structural upgrades, Wealth Management Companies (WMCs) and RIAs are decisively pivoting toward holistic, advisory-driven models, positioning the industry for sustainable, high-quality compounding over the next decade.

Business Update

In FY 2025-26, JFSL significantly accelerated its core mission of democratising finance, with the JioFinance app transforming to become a comprehensive digital marketplace for intelligent financial solutions. The app now serves as a dynamic, one-stop financial services provider. This open-architecture marketplace, which leverages Agentic AI and neural networks, enables us to seamlessly deliver a unified suite of proprietary solutions alongside carefully curated third-party products. By consolidating lending, banking, insurance and wealth management under a single digital umbrella, we are maximising customer lifetime value and driving robust engagement, with 23 million unique users and 9 million average monthly active users across all JFSL digital properties in FY 2025-26.

Through our specialised customer-facing entities, we are executing this strategy across the four core financial needs of the Indian consumer:

1. Need to Borrow:

l Jio Credit Limited offers an array of secured lending products for retail customers, including Home Loan, Loan against Property and Loan on Securities and provides supply chain and vendor financing and enterprise leasing solutions for devices and cars to corporates. The NBFC had assets under management of 25,711 crore in FY 2025-26.

2. Need to Transact:

l Jio Payment Solutions Limited provides an integrated payment infrastructure to enterprises to accept and optimise collection through online, offline/ in-store and remote channels, achieving robust scale with a Total Payment Volume (TPV) reaching 52,226 crore in FY 2025-26.

l Jio Payments Bank Limited offers digital banking solutions to consumers, including CASA accounts, debit cards and Aadhaar Enabled Payment System. In

FY 2025-26, the bank expanded its product suite by launching the innovative Savings Pro account and was empanelled as an acquirer bank for toll processing, including barrier-less tolling via MLFF (Multi-Lane Free Flow). The bank has 3.7 million CASA customers, with a total deposit base of 544 crore and a business correspondent network of 378,568 BCs as of FY 2025-26.

3. Need to Protect:

l Jio Insurance Broking Limited offers products across life, health and general insurance, through tie-ups with 42 insurance partners, via its direct-to-customer, digital

POSP/embedded and institutional sales channels.

l Allianz Jio Reinsurance Limited for reinsurance and commenced operations in March 2026.

l Jio Allianz General Insurance Limited for general insurance and health insurance incorporated in May 2026 following the binding agreement signed on April 22, 2026.

l Signed non-binding agreement with Allianz to establish a Joint Venture for life insurance in India.

4. Need to Invest:

l Our JVs with BlackRock combine BlackRocks world-class risk management and Aladdinr technology with a deep understanding of the Indian market to provide uniquely tailored solutions.

l Jio BlackRock Asset Management Private Limited offers mutual funds to investors. The asset management company successfully launched a suite of cash, debt and equity funds in FY 2025-26, rapidly scaling its quarterly average AUM to 16,712 crore in Q4 FY 2025-

26 and onboarding over 1.1 million retail customers.

l Jio BlackRock Investment Advisers Private Limited commenced operations in February 2026 to provide holistic wealth management and investment advisory services.

l Jio BlackRock Broking Private Limited to offer brokerage services.

Opportunities and Threats

Indias financial services sector is undergoing a structural transformation, presenting unprecedented avenues for growth and ecosystem expansion. A definitive cultural shift is driving the financialisation of household savings, channelling domestic capital away from traditional physical assets into formal financial instruments like mutual funds and direct equities. This transition is further accelerated by the rapid digital democratisation of the sector. Powered by robust public infrastructure such as UPI and

Account Aggregator frameworks, the cost of customer acquisition has drastically lowered, unlocking a vast, untapped Mass Affluent demographic across Tier-II and Tier-III cities. Consequently, the industry is moving away from fragmented, monoline services toward unified digital marketplaces. By consolidating lending, banking, insurance and wealth management into a single ecosystem, financial institutions can achieve superior cross-selling, data-driven product personalisation and the maximisation of customer lifetime value.

However, alongside this expansive structural runway, the industry must navigate an increasingly complex risk landscape. The exponential rise in digital transaction volumes has been mirrored by increasingly sophisticated cyber threats and AI-driven fraud, demanding continuous, capital-intensive investments in advanced cybersecurity and data privacy frameworks to maintain absolute consumer trust. Furthermore, the sector remains sensitive to broader macroeconomic vulnerabilities, including global economic uncertainties, geopolitical fragmentation and domestic inflation trajectories. Elevated equity market valuations and fluctuating interest rate cycles can also pose risks to credit demand, borrower serviceability and short-term retail investment flows. Additionally, as retail participation reaches unprecedented scale, regulatory bodies are naturally prioritising systemic stability. Adapting to dynamic compliance frameworks - such as tighter data localisation norms and modernised statutory frameworks like the Securities Markets

Code Bill, 2025 requires high operational agility and can introduce short-term compliance complexities.

To unlock the industrys full potential while effectively mitigating these emerging risks, maintaining a resilient and adaptable digital architecture is paramount. Strategic success in this evolving landscape will be defined by fostering deep financial literacy, leveraging artificial intelligence for proactive risk management and ensuring robust regulatory adherence. Ultimately, seamless collaboration between policymakers, financial institutions and technology providers will be crucial in driving responsible, compliant and sustainable innovation across the financial ecosystem.

Segment- and Product-Wise Updates

The Company is engaged primarily in the business of investing & financing in India, which constitutes one single reporting segment in accordance with Ind AS-108 Operating Segments. Therefore, there are no separate business or geographical segments as reportable.

Outlook

JFSL is decisively transitioning from foundational infrastructure development into aggressive scaling. With the JioFinance app fully established, our immediate focus is on driving sustainable revenue growth across all core verticals.

This trajectory is fortified by global joint ventures with BlackRock and Allianz, expanding our capabilities across asset management, wealth advisory, broking and insurance underwriting. Combining these products with proprietary data analytics and expansive customer reach optimises service delivery. Integrating predictive technology allows us to offer hyper-personalised products to the right customers at the right time.

Built for the digital age, JFSL continually integrates advanced technologies to optimise operational scale. Our ultimate mission remains unchanged: to close the gap between financial aspiration and access by providing world-class, frictionless financial solutions to every Indian.

Risk and Concerns

JFSLs performance is sensitive to Indias macroeconomic conditions, including political, economic, legal and foreign exchange fluctuations. Interest rate movements, driven by RBI policy, inflation and global events, are a key sensitivity, impacting net interest margin and the ability to pass on costs.

The Company maintains sufficient liquid assets (deposits, money market instruments) to meet its obligations and support group companies capital/debt needs. Group companies use both fixed and floating interest rates, with the Groups asset-liability management focused on preventing imbalances. Downgrades in

Indias sovereign credit ratings could affect the Groups financing access and terms, impacting growth and shareholder value.

Operational risk, arising from failed internal processes, people, systems or external events, is managed through comprehensive internal controls. Third-party risk, from outsourcing core activities, is mitigated via guardrails across the vendor lifecycle.

Regulatory risk stems from adverse changes to existing laws, new regulations or shifts in interpretations, potentially affecting JFSLs cost structures and operating flexibility.

Reputational risk, a key risk, arises from negative stakeholder perception that could harm business relationships and funding access. The Group actively monitors and mitigates adverse instances, including contagion from group companies.

Geopolitical risks are timely monitored and assessed to enable prompt strategic responses.

Internal Control Systems and Their Adequacy

As a registered Core Investment Company (CIC) under RBIs Master Direction, the Company maintains a comprehensive, group-wide internal control and financial governance structure. This framework aligns with the Companies Act, 2013, RBI regulations and other laws to ensure robust risk management, asset protection, financial accuracy and regulatory compliance across the Company, its subsidiaries, joint ventures and Associates.

Internal financial controls are embedded in all key business processes group-wide, ensuring transactions are appropriately authorised, recorded and reported, adhering to applicable Indian Accounting Standards (Ind AS).

The internal control environment is continuously monitored through: l Management oversight and periodic self-assessments. l Control testing by risk management teams. l Risk-based internal audits by independent teams. l Function-level control monitoring within each subsidiary. l Ongoing compliance tracking across operational, financial and regulatory domains.

The Group Risk Management Committee meets periodically to: l Analyse the material risks to which the group, its businesses and subsidiaries are exposed. It must discuss all risk strategies, both at an aggregated level and by type of risk and make recommendations to the Board in accordance with the groups overall risk appetite. l Identify potential intra-group conflicts of interest. l Assess whether there are effective systems in place to facilitate the exchange of information for effective risk oversight of the group. l Assess whether the corporate governance framework addresses risk management across the group. l Carry out periodic independent formal review of the group structure and internal controls. l Articulate the leverage of the Group and monitor the same.

The Audit Committee oversees group-level internal controls and meets periodically to review: l The adequacy and effectiveness of internal financial controls across all entities. l Compliance status with internal policies, SOPs and regulatory guidelines. l Implementation of audit findings and corrective actions across the CIC, its subsidiaries, Joint Ventures and Associates. l The Company maintains a unified risk and control approach, committed to strengthening its systems in line with evolving regulatory and supervisory expectations.

Human Capital

To facilitate the acceleration of JFS, we have fundamentally redesigned our human capital strategy to move beyond traditional organisational setup to establish a high-velocity, tech-enabled ecosystem built around customer obsession. This transformation comes in the light of a period of significant organisational growth for

JFS, as we successfully doubled our team from 900 to over 1,900 employees. This talent surge has directly supported our expanding physical and digital footprint, with our presence spanning over 15 locations. Central to managing this scale is our Customer-Back Architecture, which replaces rigid hierarchies with a decentralised model. By transitioning from a digital-first to an AI-native leadership approach, we have institutionalised our commitment to AI-native leadership, ensuring that our rapidly growing talent pool does not merely utilise AI as an elective tool but treats its fusion with data as a foundational core skill to drive sustained competitive advantages.

This structural shift is supported by our Hire-Build-Enable framework, a disciplined lifecycle designed to acquire top-tier talent, aggressively build their technical capabilities and provide the autonomous environment necessary for them to thrive. Additionally, we continue to prioritise inclusive momentum by onboarding a mix of global talent with specialised expertise, fostering a cohesive culture that leverages diverse industry backgrounds to drive our high-velocity ecosystem. By harmonising these varied perspectives within our agile framework, we are building a resilient, future-ready workforce capable of sustained high performance and seamless collaboration across our expanding operations.

Enterprise Risk Management

JFSL operates within a dynamic risk landscape across its subsidiaries, managing exposures that include Pillar I risks (credit risk, market risk and operational risk) and Pillar II Risks (strategic risk, fraud risk, model risk, digital risk, etc.). A comprehensive Enterprise Risk Management (ERM) framework underpins the

Companys approach, ensuring that risk identification, assessment, mitigation and monitoring are embedded into all strategic and operational activities. Risks are identified through proactive self-evaluation exercises and data analytics, followed by rigorous quantitative and qualitative assessments. Mitigation strategies, including diversification, insurance and the institution of robust internal controls are implemented to limit impact.

The ERM framework is aligned with JFSLs risk appetite and strategic objectives and is governed through a clear, multi-layered structure that defines stakeholder roles and responsibilities. This ensures risk considerations are fully integrated into decision-making across investment, policy and operational domains.

Automation tools enhance the effectiveness and accuracy of risk monitoring, while the Companys disaster recovery and business continuity plans, built on detailed impact analyses, safeguard critical operations in the event of unforeseen disruptions. Through continuous monitoring, reporting and adaptation, the ERM framework ensures that risk levels are maintained within acceptable thresholds, supporting JFSLs long-term resilience and stability.

Financial Results

The Companys financial performance (standalone and consolidated) for the year ended March 31, 2026 is summarised below:

Particulars	Standalone		Consolidated
	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Interest Income	117.33	117.13	1,901.87	852.53
Dividend	405.22	235.03	268.97	240.94
Fees, commission and other services	5.10	6.40	597.01	155.17
Net gain on fair value changes	421.09	447.00	745.41	794.27
Other Income	19.86	33.72	29.35	36.01
Total Income	968.60	839.28	3,542.61	2,078.92
Finance Cost		-	745.09	7.65
Impairment on financial instruments	(5.81)	6.65	66.17	40.35
Staff Expenses	81.35	83.41	387.27	214.92
Other operating expenses	118.60	95.83	784.40	261.91
Total Expenses	194.14	185.89	1,982.93	524.83
Profit before share in profit of Associate and Joint Ventures	-	-	1,559.68	1,554.09
Share of Associates & Joint Ventures, net of tax	-	-	323.41	392.82
Exceptional items	-	-	28.57	-
Profit before tax	774.46	653.39	1,911.66	1,946.91
Provision for Taxation	93.43	104.48	350.76	334.32
Profit after Tax	681.03	548.91	1,560.90	1,612.59

CONSOLIDATEDFINANCIALPERFORMANCE

Consolidated Total Income grew 70% YoY to 3,543 crore Interest Income increased 123% YoY driven by a 2.5x expansion in the NBFCs loan book to 25,711 crore and the inclusion of interest income of the Payments Banks following the acquisition of SBIs remaining stake.

Fees and commission income rose 285% YoY to 597 crore due to higher transaction processing volumes in the payment solutions business, higher throughput in the payments bank and growth facilitated premium in insurance broking.

Treasury income faced headwinds in late-March 2026 as geopolitical tensions drove a steep increase in yields, impacting mark-to-market gains on the Companys high capital base, partially deployed in fixed income investments.

Total Expenses increased 278% YoY to 1,983 crore commensurate with the scale-up of our growth-stage ventures, continued investments in incubating new business, higher finance costs as the NBFC transitioned towards a higher share of market borrowings to fund its lending operations and full consolidation of Jio

Payments Bank Limiteds financials on a line-by-line basis effective

June 18, 2025.

The share of profit from Associates and Joint Ventures decreased by 18% YoY to 323 crore attributable to the expenses incurred for scaling up the asset management and wealth management entities; and operationalising the broking entity and reinsurance JV with Allianz. This also includes the dividend received by Reliance Services and Holdings Limited, which is accounted for as an associate of JFSL, on its investment in Reliance Industries Limited shares.

Consequently, Consolidated Profit After Tax (PAT) for the year stood at 1,561 crore against 1,613 crore in FY 2024-25.

The consolidated financials reflect the diversity of our businesses, with some demonstrating a solid trajectory of growth while others continue to make investments to build the requisite business foundation. Ultimately, this performance reflects our strong capital base, fiscal prudence, optimal capital allocation and leverage and a steadfast focus on unit-level profitability and economics.

STANDALONE FINANCIAL PERFORMANCE

Standalone Total Income stood at 969 crore, compared to 839 crore in the previous year and primarily comprises interest income on interest-bearing investments and net gains on fair value changes from money market and liquid mutual fund instruments. This also includes the dividend income of 405 crore received from our subsidiary, Reliance Industrial Investments and Holdings Limited, up from 235 crore in the prior year.

Total Expenses increased to 194 crore from 186 crore in FY 2024-25, reflecting our strategic commitment as a CIC to build for the long term as we continue to deploy resources to actively nurture and incubate a diverse portfolio of companies currently operating across different stages of growth.

Consequently, Standalone Profit After Tax (PAT) for the full year stood at 681 crore, representing a strong 24% year-on-year growth.