IPO Note : Jio Platforms Ltd by Geojit Investments Ltd
Driving India's Digital Transformation… Jio Platforms Ltd. (Jio) is India's leading digital connectivity and services platform, serving over 533 million subscribers through mobile and fixed broadband, digital applications, enterprise solutions, cloud, IoT, and AI services. Backed by Reliance Jio Infocomm, Jio has built a nationwide 4G and 5G network covering over 99% of India's population. Its key competitive advantage is a proprietary, vertically integrated technology stack spanning network infrastructure, devices, software, and digital platforms, enabling cost efficiencies and rapid innovation. Supported by a vast distribution network, indigenous 5G technologies, 7,220+ patent applications, and the JioBrain AI platform, Jio is well positioned to drive growth across consumer and enterprise digital ecosystems in India.
• India’s mobile connectivity market is expected to grow from Rs 2.9 trillion in FY26 at ~12% CAGR through FY31, driven by mobile broadband expansion, supported by rising subscriber additions and ARPU growth.
• Topline grew ~16% CAGR to Rs 1,46,885 Cr in FY26, driven by subscriber growth, Average Revenue Per User (ARPU) expansion, tariff hikes, and rising 5G-led data consumption.
• Adj. PAT grew ~19% CAGR from FY24 to Rs 30,046 Cr in FY26, driven by strong topline growth, stable EBITDA margins of ~50%, and improved operating leverage.
• As of June 30, 2026, Jio is the India’s largest digital connectivity player with ~1.4x the 4G/5G subscriber base of the second-largest operator, carrying ~60% of India’s wireless data traffic in FY26 and the second-highest mobile data traffic globally.
• Strong operating momentum with 533 million customers, ARPU of Rs 216, and average monthly data usage of 43.7GB/user in Q1FY27, reflecting continued subscriber monetization and rising network engagement.
• IPO proceeds will support deleveraging, with the Debt-to-Equity ratio improving from 0.3x to 0.1x.
• At the upper price band of Rs.1,119, Jio is valued at ~15x FY26 EV/EBITDA on a post-issue basis, implying a premium to industry peers. This premium is justified by Jio’s market leadership, improving monetisation, strong cash flow generation, and substantial long-term optionality beyond its core telecom business. IPO-led deleveraging is expected to further strengthen the balance sheet. While the nearterm upside may be moderated by the premium valuation, the monetisation of cloud, AI, enterprise solutions, entertainment, digital platforms, and fixed broadband services could emerge as key drivers of earnings growth over the medium to long term. We therefore recommend SUBSCRIBE for investors with a medium- to long-term investment horizon.
Purpose of IPO
The offer consists Fresh Issue of up to Rs 30,188.9cr. The net proceeds from the fresh issue will be primarily utilized for debt repayment (Rs 27,500cr), while the remaining proceeds will be used for general corporate purposes.
Key Risks
• Dependency Risk: Heavy reliance on third-party tower and fiber providers exposes the network to outages from vendor disruptions.
• Regulatory Risk: Evolving DoT and TRAI rules on spectrum, licensing, and privacy may sharply increase costs and financial liabilities.
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SEBI Registration Number: INH20000034
