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Summary: Jio won India's telecom market by making data cheap. Its next chapter depends on squeezing more from customers and a vast network it has already built. The harder question for anyone eyeing India's largest IPO is how much of that future the price already assumes.
A decade after disrupting India's telecom industry with inexpensive mobile data, Jio Platforms is preparing for India's largest IPO. With 533.3 million customers and nearly half the mobile broadband market, it has established a commanding position in connectivity.
The Rs 30,213-crore IPO opening on October 21, 2026, consists entirely of fresh shares, with up to Rs 27,500 crore earmarked for loan repayment. At the upper price band, the company is valued at approximately Rs 10.3 lakh crore.
Mobile
At the heart of Jio Platforms is Reliance Jio Infocomm (RJIL), which operates mobile connectivity, home broadband and enterprise network services. It contributed nearly 88 per cent of consolidated revenue and 95 per cent of EBITDA in FY26.
Jio commands 49.8 per cent of India's mobile broadband market. While approximately 261 million connections still use legacy 2G networks, attracting these relatively price-sensitive customers may not be its biggest opportunity.
Instead, a hypothetical Rs 10 monthly ARPU increase across Jio's 533.3 million customers could generate approximately Rs 6,400 crore in additional annual revenue, assuming an unchanged customer base. That is comparable to acquiring 52 million subscribers spending Rs 100 monthly.
The industry's mobile connectivity market is projected to expand from Rs 2.9 lakh crore in FY26 to Rs 5.2 lakh crore by FY31, supported significantly by higher ARPU. However, Jio's ARPU of Rs 215.6 remains below Bharti Airtel's Rs 263.9.
Home broadband
Unlike mobile, India's fixed broadband market remains substantially underpenetrated. The industry expects connections to increase from 66.1 million in June 2026 to 150.4 million by FY31.
Jio already commands 43.3 per cent of this market and 78.6 per cent of advanced fixed wireless access (FWA) connections. FWA uses wireless signals instead of laying fibre cables directly to every home.
Jio captured approximately 62 per cent of industry fixed broadband net additions in the June quarter. Capturing even half of the projected additional industry connections could more than double its existing broadband customer base.
However, FWA has constraints. Wireless capacity is shared, and higher usage could require additional network equipment and investment. The profitability of these connections remains insufficiently disclosed.
India's connectivity opportunity
| Industry metric | FY26 / June 2026 | FY31 forecast |
|---|---|---|
| Mobile market (Rs lakh cr) | 2.9 | 5.2 |
| Mobile broadband connections (million) | 1,002.30 | 1,339.40 |
| Fixed broadband market (Rs cr) | 34,000–35,000 | 92,000–93,000 |
| Fixed broadband connections (million) | 66.1 | 150.4 |
| Business connectivity market (Rs cr) | 49,000–50,000 | 90,000–91,000 |
Enterprise
India has over 79 million micro, small and medium enterprises, but fewer than four million business fixed broadband connections existed in FY26. The industry expects this number to reach approximately 32 million by FY31.
Jio aims to capitalise on this opportunity through connectivity, cloud computing, cybersecurity and managed services. Its existing network offers a distribution advantage. A business purchasing connectivity could eventually adopt additional digital services.
However, the projected eightfold increase in business broadband connections contrasts with much slower growth in overall business connectivity revenue. Many new customers may purchase inexpensive connections rather than high-value enterprise solutions.
Jio's digital ambitions
Its consumer offerings include JioSaavn, JioGames, JioAICloud and JioPC. These applications, alongside MyJio and JioTV, recorded 362.6 million average monthly active users in the June quarter, although users of multiple applications may be counted more than once.
There is already evidence of expansion. Jio Platforms' standalone revenue, representing digital services, grew from Rs 7,571 crore in FY24 to Rs 16,167 crore in FY26, an annualised increase of 46 per cent.
However, these figures may include intra-group transactions and cannot be interpreted as separately identifiable consolidated digital-services revenue.
Jio's emerging businesses
| Subsidiary | FY26 revenue (Rs cr) | Share of consolidated revenue (%) | EBITDA margin (%) |
|---|---|---|---|
| Jio Things (IoT) | 801 | 0.55 | 1.8 |
| Jio Haptik (conversational AI) | 309.3 | 0.21 | 20.4 |
| Radisys India (technology) | 867.5 | 0.59 | 17.5 |
| Saavn Media (music) | 343.9 | 0.23 | 12.5 |
Jio Things' revenue grew 77 per cent in FY26, but its EBITDA margin was just 1.8 per cent. Meanwhile, Haptik and Radisys India generated healthier margins. This demonstrates that digital services have different economics. Some could become profitable software businesses, while others involve hardware or content-related costs.
Could Jio's massive asset base become an advantage?
Jio's Rs 6.16 lakh crore asset base and Rs 3.34 lakh crore net worth resulted in a relatively modest 9.4 per cent return on equity in FY26. However, low returns may not fully capture the earning potential of infrastructure built over several years.
Between FY24 and FY26, revenue increased 34 per cent and profit attributable to shareholders grew 40 per cent. Total assets increased only 14 per cent. Thus, Jio is already generating more revenue and profit relative to its asset base.
Jio Platforms' financial performance
| Key financials (Rs cr) | FY24–26 CAGR | FY26 | FY25 | FY24 |
|---|---|---|---|---|
| Revenue | 15.80% | 1,46,885 | 1,28,218 | 1,09,558 |
| EBIT (ex OI) | 19.60% | 46,133 | 38,918 | 32,238 |
| PAT attributable to owners | 18.50% | 30,064 | 26,110 | 21,422 |
| Borrowings plus leases | 12.30% | 84,669 | 85,696 | 67,111 |
| Key ratios (%) | FY26 | FY25 | FY24 |
|---|---|---|---|
| ROE | 9.4 | 9 | 8 |
| ROCE | 10.8 | 12.5 | 12.8 |
| EBIT margin (ex OI) | 31.4 | 30.4 | 29.4 |
Interestingly, ROCE declined from 12.5 per cent in FY25 to 10.8 per cent in FY26. This partly reflects a 31 per cent increase in capital employed as substantial network and spectrum investments moved out of development. Because Jio excludes assets under development from its ROCE calculation, newly commissioned assets can increase capital employed before generating their full earning potential.
The opportunity now is to use this infrastructure more intensively. Higher tariffs, additional broadband subscribers and digital services could generate incremental profits without proportionate capital investment.
However, future network upgrades and expansion will still require spending. Jio also has approximately Rs 1.05 lakh crore of deferred payment liabilities, largely spectrum-related, which are excluded from its reported net debt.
What does the valuation imply?
At the upper IPO price band, Jio trades at approximately 33.6 times trailing earnings and 2.8 times pro forma book value.
Bharti Airtel provides a useful comparison. Jio has greater mobile broadband scale and fixed broadband market share, while Airtel enjoys higher reported ARPU and an established enterprise franchise. Nevertheless, investors buying at 2.8 times book value need to consider the relatively modest current ROE. Even if existing infrastructure can support future growth, the price already reflects expectations of improvement.
Also read: Telecom or tech? That one call decides what Jio is worth
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