Jio runs India’s largest 4G and 5G network, plus JioFiber and AirFiber home and business broadband, and a growing set of digital services. It has 533.3 million customers. The IPO is a fresh issue of shares, so the money goes to the company, mostly to repay debt at its operating subsidiary, Reliance Jio Infocomm (RJIL).
How Jio makes money
Prepaid plans: 77% of sales
Customers recharge before they use the service, so Jio is paid upfront. Plans are sold through Reliance Retail, a group company, which Jio paid ₹4,355 Cr in FY26 (3.85% of prepaid revenue).
Postpaid, devices and digital platforms: 23% of sales
Postpaid customers are billed monthly and usually spend more, which lifts ARPU (average revenue per user). Digital services such as JioHotstar and JioAICloud are a smaller but fast-growing stream.
Why customers pick Jio
Its network covers over 99% of the population, 284.9 million customers are already on 5G, and Jio holds the most spectrum (airwaves) of any Indian operator.
Key dates
Up to ₹500 Cr is reserved for eligible employees and up to ₹2,500 Cr for eligible Reliance Industries shareholders, separate from the Net Issue. Source: Red Herring Prospectus.
Market share · Network · Spectrum
India’s market leader, with the most spectrum
Spectrum held, 30 Jun 2026 (share of India’s 59,285 MHz)
26,801 MHz (45%)
22,538 MHz (38%)
8,030 MHz (14%)
1,916 MHz (3%)
What the network looks like
Per customer, FY24 to FY26
ARPU (₹ a month)
Up 17.8% in two years
Data per customer (GB a month)
Up 47.4% in two years
Key takeaway
Jio holds 49.78% of wireless broadband and 43.32% of fixed broadband. It owns 26,801 MHz of spectrum, 18.9% more than Bharti Airtel and 3.3 times Vodafone Idea. It leads in low, high and mmWave bands, but Airtel holds more mid-band (1,965 MHz against 1,471 MHz). Growth comes mainly from heavier use: each customer now uses 42.3 GB a month and pays ₹214, up from 28.7 GB and ₹181.7. Market share figures come from an industry report.
Sales · Profit · Cash, FY24 to FY26
Sales, profit and cash flow up, debt down
Sales (₹ Cr)
Up 34.1% in two years
Profit after tax (₹ Cr)
Up 40% in two years
Operating cash flow (₹ Cr)
After tax. Up 34.5%
The numbers
| FY24 | FY25 | FY26 | |
|---|---|---|---|
| EBITDA margin (%) | 50.16 | — | 51.91 |
| ROCE (%) | 12.83 | 12.50 | 10.76 |
| Return on net worth (%) | 8.02 | 8.97 | 9.42 |
| Net debt / EBITDA (x) | 0.88 | 0.71 | 0.36 |
| EBITDA less cash capex (₹ Cr) | 1,449 | 19,902 | 42,071 |
| Closing cash (₹ Cr) | 2,489 | 8,012 | 16,557 |
Year ends 31 March. EBITDA is operating profit before interest, tax and wear on assets. FY25 EBITDA margin was not given in the source note.
Key takeaway
Revenue, profit and operating cash flow have grown for three years in a row, and margins have widened. Operating cash flow after tax reached ₹77,556 Cr in FY26 while net leverage fell to 0.36 times. Auditors gave a clean opinion in all three years. The weak spot is returns: return on net worth is 9.42%, and ROCE slipped from 12.83% to 10.76% as the asset base grew.
Use of money · Ownership · Closest peer
Money repays debt, and the P/E is 15% below Airtel
Where the money goes
₹27,500 Cr
Up to ₹2,713 Cr
The corporate-purposes figure is the balance after debt repayment and issue costs, so the final split depends on the issue price.
Who keeps their stake (6-month lock-in, not selling)
9.98%
7.73%
2.31%
2.31%
Reservation, net issue
Qualified institutions up to 50%, non-institutional investors at least 15%, and retail investors at least 35%.
Against the closest listed peer, Bharti Airtel
| Jio at ₹1,119 | Bharti Airtel | |
|---|---|---|
| Sales, FY26 (₹ Cr) | 1,46,885 | 2,10,973 |
| Profit after tax (₹ Cr) | 30,049 | 33,823 |
| EBITDA margin (%) | 51.91 | 57.48 |
| PAT margin (%) | 20.46 | 16.03 |
| Return on net worth (%) | 9.42 | 20.32 |
| P/E | 33.19x | 38.96x |
| Net debt / EBITDA (x) | 0.36 | 1.36 |
| ARPU (₹ a month) | 214.0 | 257.2 |
Key takeaway
Nobody is selling in this issue, and ₹27,500 Cr of the ₹30,213 Cr raised repays debt. Reliance Industries’ stake falls to 64.48% because new shares are created. At 33.19x, Jio is priced about 15% below Airtel. Airtel earns more per customer and a higher return on equity, partly because its 30 million postpaid customers spend more. Jio keeps more of each rupee of sales as profit, and carries far less debt. Vodafone Idea is left out because its FY26 profit came from one-off items.
Market leader · Falling debt · Priced below closest peer
A clean, improving market leader
Clear market leader
49.78% of wireless and 43.32% of fixed broadband, per a report the company commissioned.
Three years of growth
Sales, EBITDA and profit rose every year, and both margins widened.
Debt falling fast
Net leverage 0.88x to 0.36x. Cash after capex grew almost 30-fold.
Clean audit
Unmodified opinion in all three years.
Money repays debt
₹27,500 Cr of the issue goes to RJIL’s borrowings.
Marquee holders stay
Meta, Google, PIF and KKR are not selling and are locked in for 6 months.
Priced below Airtel
33.19x against 38.96x, 15% lower.
Lower ARPU
₹214.0 a month against Airtel’s ₹257.2. Jio is working to raise it.
Modest returns
Return on net worth of 9.42% is well below Airtel’s 20.32%.
Customer growth is slower
Customers grew 8.8% in two years against Airtel’s 18.5%.
Our opinion
Apply for the long term
Jio holds almost half of India’s wireless broadband market, debt is falling fast and profits are rising, so we would apply and hold for the long term.
