21-07-2025
Reliance vs Jio Financial Services: Which Mukesh Ambani-owned share is better placed on tech chart after Q1 results?
Reliance vs Jio Financial Services: Last week, Mukesh Ambani-owned Reliance Industries Ltd (RIL) and Jio Financial Services Ltd (JFSL) reported their Q1 2025 results, and hence, both Mukesh Ambani-owned stocks are expected to remain in focus on Monday. While Jio Financial Services reported strong Q1 2025 results, Reliance missed its O2C earnings. However, RIL has given strong guidance post-Q1 results.
According to stock market experts, Reliance shares and Jio Financial share prices will remain under the lens of both bulls and bears after their respective Q1 results were declared on the weekend. They said that fundamentally, both stocks are good for long-term investors, but for short-term investors, the RIL share price may trump the Jio Financial share price rally.
On what the technical chart suggests about these Mukesh Ambani-owned stocks, Anshul Jain, Head of Research at Lakshmishree Investment, said, 'Jio Financial is currently trading within a key resistance zone of ₹ 324 to ₹ 347. Despite strong overhead pressure, the stock isn't backing down — instead, it's showing signs of bullish accumulation. Volume is steadily declining, which often precedes a breakout after consolidation. That said, price action suggests a range-bound phase could continue for the next 8–10 weeks.'
'Reliance share price, on the other hand, has clearly rejected the resistance zone around ₹ 2,532. With no strong buying interest at these levels, the stock is likely heading to test major liquidity between ₹ 2,414 to ₹ 2,392. This makes RIL share price a more attractive buy on dips bet, especially as it approaches that demand zone,' Anshul Jain said.
Reviewing the RIL Q1 results for the first quarter of the current fiscal, Sabri Hazarika, Senior Research Analyst at Emkay Global Financial Services, said, 'RIL saw a 5%/7% consol EBITDA/APAT miss in Q1FY26 at Rs429/181bn, resp. This is due to 6%/5% lower than expected O2C/retail EBITDA, while Jio and Upstream EBITDA came at a 2% beat each. O2C was mainly hit by turnaround activity, while retail saw seasonal impact on electronics with overall revenue/EBITDA up 11%/13% YoY, albeit on a low base. Jio subs addition was better at 9.9mn, while ARPU grew 1% to Rs208.8. Net debt was stable QoQ at Rs1.18trn, and capex stood at Rs299bn. Against the weak results, the mgmt gave a healthy outlook, with O2C supported by refinery closures in the West, Retail and Jio likely to accelerate (to achieve 2x EBITDA in 4-5Y across the group), and the new energy ecosystem to fully operationalize in 4-6 quarters with partnerships, and a self-funded model in a few years. We factor in a tariff hike in Jio for Q3FY26E and raise O2C earnings, building in higher GRM. We raise FY26/27E EPS by 4/7% and TP by 10% to Rs1,600, with some expansion in the target multiple of Other segments/New Energy. The stock performance has been strong in the last 3M; we retain BUY, albeit seek better entry points.'
Speaking on the Jio Financial Services Q1 results 2025, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, '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. Notably, Net Income from Business surged nearly 4x YoY to ₹ 219 crore, contributing about 40% of total net income, reflecting improved core operating efficiency. The company's Profit After Tax stood at ₹ 325 crore, growing 4% YoY, while Pre-Provisioning Operating Profit rose 8% YoY to ₹ 366 crore, indicating disciplined cost management. The standout performer was Jio Credit Limited (JCL), whose AUM skyrocketed to ₹ 11,665 crore from just ₹ 217 crore a year ago, aided by a credit-conscious approach and successful market borrowings at competitive rates.'
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
