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Jio IPO: Value Beyond Size?
21 Oct
Summary
- Jio's ARPU of ₹215.6 trails Airtel's ₹263.9.
- IPO represents only 2.9% of post-issue capital.
- Digital services share grew to 11% by FY26.
Jio Platforms, India's largest IPO to date, presents a unique investment case for everyday investors, focusing on relative valuation comfort compared to its peer, Bharti Airtel. This significant issuance requires substantial capital due to rapid technological changes in the telecom industry.
Jio boasts industry-leading scale with 533 million telecom customers, yet its monthly average revenue per user (ARPU) was ₹215.6 as of the June 2026 quarter, trailing Bharti Airtel's ₹263.9. Jio's Ebitda margins also lagged behind its closest competitor.
Founded in 2019, Jio Platforms, through Reliance Jio Infocomm, is India's foremost digital connectivity platform. It leads in wireless data traffic, carrying over 60% of the nation's wireless data in FY26, and has a substantial 5G subscriber base.
Consolidated revenue grew 15.8% annually between FY24 and FY26 to ₹1,46,885.3 crore, with net profit rising by 18.4% annually. The contribution from digital services within Jio Platforms increased to 11% by FY26, indicating diversification beyond core telecom.
Post-IPO, Jio Platforms has a price-earnings multiple of 34.3 on FY26 earnings. This valuation appears attractive when contrasted with Bharti Airtel's FY26 P/E of 43.8, suggesting potential upside as Jio capitalizes on its growth in data traffic and digital services.
