{"id":23483,"date":"2026-10-17T17:00:20","date_gmt":"2026-10-17T11:30:20","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=23483"},"modified":"2026-10-17T17:00:20","modified_gmt":"2026-10-17T11:30:20","slug":"jio-platforms-ipo-review-our-opinion","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/jio-platforms-ipo-review-our-opinion\/","title":{"rendered":"Jio Platforms IPO review: Our Opinion"},"content":{"rendered":"
\n

Jio runs India\u2019s 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).<\/p>\n

How Jio makes money<\/p>\n

\n

Prepaid plans: 77% of sales<\/p>\n

Customers recharge before they use the service, so Jio is paid upfront. Plans are sold through Reliance Retail, a group company, which Jio paid \u20b94,355 Cr in FY26 (3.85% of prepaid revenue).<\/p>\n<\/div>\n

\n

Postpaid, devices and digital platforms: 23% of sales<\/p>\n

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.<\/p>\n<\/div>\n

\n

Why customers pick Jio<\/p>\n

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.<\/p>\n<\/div>\n

\n
\n
Issue size<\/div>\n
\u20b930,213 Cr<\/div>\n
100% fresh issue. No promoter or investor is selling<\/div>\n<\/div>\n
\n
Price band<\/div>\n
\u20b91,065\u20131,119<\/div>\n
\u20b91,119 (cap) used for all figures<\/div>\n<\/div>\n
\n
Minimum retail bid<\/div>\n
\u20b913,428<\/div>\n
1 lot = 12 shares, at cap price<\/div>\n<\/div>\n<\/div>\n
\n
\n
Market cap at \u20b91,119<\/div>\n
\u20b910,30,491 Cr<\/div>\n
Post-issue<\/div>\n<\/div>\n
\n
Sales, FY26<\/div>\n
\u20b91,46,885 Cr<\/div>\n
Up from \u20b91,09,558 Cr in FY24<\/div>\n<\/div>\n
\n
Listing P\/E<\/div>\n
33.19x<\/div>\n
On FY26 profit<\/div>\n<\/div>\n
\n
Profit after tax, FY26<\/div>\n
\u20b930,049 Cr<\/div>\n
Up from \u20b921,423 Cr in FY24<\/div>\n<\/div>\n<\/div>\n

Key dates<\/p>\n

\n
Bid opens<\/span>Wed 21 Oct<\/b><\/div>\n
Bid closes<\/span>Fri 23 Oct<\/b><\/div>\n
Allotment<\/span>Mon 26 Oct<\/b>on or about<\/span><\/div>\n
Listing<\/span>Wed 28 Oct<\/b>on or about<\/span><\/div>\n<\/div>\n

Up to \u20b9500 Cr is reserved for eligible employees and up to \u20b92,500 Cr for eligible Reliance Industries shareholders, separate from the Net Issue. Source: Red Herring Prospectus.<\/p>\n<\/section>\n

\n

Market share \u00b7 Network \u00b7 Spectrum<\/p>\n

India\u2019s market leader, with the most spectrum<\/h1>\n
\n
\n
Wireless broadband share<\/div>\n
49.78%<\/div>\n
Airtel 35.47%, Vodafone Idea 12.51%<\/div>\n<\/div>\n
\n
Fixed broadband share<\/div>\n
43.32%<\/div>\n
1.9x the second-largest player<\/div>\n<\/div>\n
\n
Customers<\/div>\n
533.3 mn<\/div>\n
30 Jun 2026. 5G: 284.9 mn<\/div>\n<\/div>\n
\n
Monthly churn<\/div>\n
1.61%<\/div>\n
Q1 FY27. Airtel: 2.43%<\/div>\n<\/div>\n<\/div>\n

Spectrum held, 30 Jun 2026 (share of India\u2019s 59,285 MHz)<\/p>\n

Jio\n
\n
<\/div>\n<\/div>\n

26,801 MHz (45%)<\/span><\/p>\n<\/div>\n

Bharti Airtel\n
\n
<\/div>\n<\/div>\n

22,538 MHz (38%)<\/span><\/p>\n<\/div>\n

Vodafone Idea\n
\n
<\/div>\n<\/div>\n

8,030 MHz (14%)<\/span><\/p>\n<\/div>\n

BSNL \/ MTNL\n
\n
<\/div>\n<\/div>\n

1,916 MHz (3%)<\/span><\/p>\n<\/div>\n

What the network looks like<\/p>\n

\n
\n
Towers<\/div>\n
3,60,537<\/div>\n
Majority on fibre<\/div>\n<\/div>\n
\n
Fibre network<\/div>\n
1.0 mn+ km<\/div>\n
Route length<\/div>\n<\/div>\n
\n
Home broadband<\/div>\n
28.6 mn<\/div>\n
14.0 mn on AirFiber<\/div>\n<\/div>\n
\n
MyJio app users<\/div>\n
227.6 mn<\/div>\n
Monthly average, Apr\u2013Jun 2026<\/div>\n<\/div>\n<\/div>\n

Per customer, FY24 to FY26<\/p>\n

\n
\n

ARPU (\u20b9 a month)<\/p>\n

Up 17.8% in two years<\/p>\n

\n
181.7<\/span><\/div>\n
206.2<\/span><\/div>\n
214.0<\/span><\/div>\n<\/div>\n
FY24<\/span>FY25<\/span>FY26<\/span><\/div>\n<\/div>\n
\n

Data per customer (GB a month)<\/p>\n

Up 47.4% in two years<\/p>\n

\n
28.7<\/span><\/div>\n
33.6<\/span><\/div>\n
42.3<\/span><\/div>\n<\/div>\n
FY24<\/span>FY25<\/span>FY26<\/span><\/div>\n<\/div>\n<\/div>\n
\n

Key takeaway<\/p>\n

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 \u20b9214, up from 28.7 GB and \u20b9181.7. Market share figures come from an industry report.<\/p>\n<\/div>\n<\/section>\n

\n

Sales \u00b7 Profit \u00b7 Cash, FY24 to FY26<\/p>\n

Sales, profit and cash flow up, debt down<\/h1>\n
\n
\n

Sales (\u20b9 Cr)<\/p>\n

Up 34.1% in two years<\/p>\n

\n
1,09,558<\/span><\/div>\n
1,28,218<\/span><\/div>\n
1,46,885<\/span><\/div>\n<\/div>\n
FY24<\/span>FY25<\/span>FY26<\/span><\/div>\n<\/div>\n
\n

Profit after tax (\u20b9 Cr)<\/p>\n

Up 40% in two years<\/p>\n

\n
21,423<\/span><\/div>\n
26,109<\/span><\/div>\n
30,049<\/span><\/div>\n<\/div>\n
FY24<\/span>FY25<\/span>FY26<\/span><\/div>\n<\/div>\n
\n

Operating cash flow (\u20b9 Cr)<\/p>\n

After tax. Up 34.5%<\/p>\n

\n
57,662<\/span><\/div>\n
68,156<\/span><\/div>\n
77,556<\/span><\/div>\n<\/div>\n
FY24<\/span>FY25<\/span>FY26<\/span><\/div>\n<\/div>\n<\/div>\n

The numbers<\/p>\n

\n
\n\n\n\n\n\n\n\n\n
<\/th>\nFY24<\/th>\nFY25<\/th>\nFY26<\/th>\n<\/tr>\n
EBITDA margin (%)<\/td>\n50.16<\/td>\n\u2014<\/td>\n51.91<\/td>\n<\/tr>\n
ROCE (%)<\/td>\n12.83<\/td>\n12.50<\/td>\n10.76<\/td>\n<\/tr>\n
Return on net worth (%)<\/td>\n8.02<\/td>\n8.97<\/td>\n9.42<\/td>\n<\/tr>\n
Net debt \/ EBITDA (x)<\/td>\n0.88<\/td>\n0.71<\/td>\n0.36<\/td>\n<\/tr>\n
EBITDA less cash capex (\u20b9 Cr)<\/td>\n1,449<\/td>\n19,902<\/td>\n42,071<\/td>\n<\/tr>\n
Closing cash (\u20b9 Cr)<\/td>\n2,489<\/td>\n8,012<\/td>\n16,557<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

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.<\/p>\n

\n
\n
Auditor\u2019s opinion<\/div>\n
Unmodified<\/div>\n
All three years. No going-concern flag<\/div>\n<\/div>\n
\n
Net leverage<\/div>\n
0.36x<\/div>\n
Down from 0.88x in FY24<\/div>\n<\/div>\n
\n
Return on net worth<\/div>\n
9.42%<\/div>\n
Rising, but still modest<\/div>\n<\/div>\n<\/div>\n
\n

Key takeaway<\/p>\n

Revenue, profit and operating cash flow have grown for three years in a row, and margins have widened. Operating cash flow after tax reached \u20b977,556 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.<\/p>\n<\/div>\n<\/section>\n

\n

Use of money \u00b7 Ownership \u00b7 Closest peer<\/p>\n

Money repays debt, and the P\/E is 15% below Airtel<\/h1>\n
\n
\n
Fresh issue<\/div>\n
\u20b930,213 Cr<\/div>\n
Up to 27 crore new shares<\/div>\n<\/div>\n
\n
Promoter stake<\/div>\n
66.43% \u2192 64.48%<\/div>\n
Reliance Industries, pre and post issue<\/div>\n<\/div>\n
\n
P\/E discount to Airtel<\/div>\n
15%<\/div>\n
33.19x against 38.96x<\/div>\n<\/div>\n<\/div>\n

Where the money goes<\/p>\n

Repay RJIL\u2019s borrowings\n
\n
<\/div>\n<\/div>\n

\u20b927,500 Cr<\/span><\/p>\n<\/div>\n

General corporate purposes\n
\n
<\/div>\n<\/div>\n

Up to \u20b92,713 Cr<\/span><\/p>\n<\/div>\n

The corporate-purposes figure is the balance after debt repayment and issue costs, so the final split depends on the issue price.<\/p>\n

Who keeps their stake (6-month lock-in, not selling)<\/p>\n

Meta affiliate (Jaadhu)\n
\n
<\/div>\n<\/div>\n

9.98%<\/span><\/p>\n<\/div>\n

Google International\n
\n
<\/div>\n<\/div>\n

7.73%<\/span><\/p>\n<\/div>\n

Saudi Arabia\u2019s PIF\n
\n
<\/div>\n<\/div>\n

2.31%<\/span><\/p>\n<\/div>\n

KKR affiliate\n
\n
<\/div>\n<\/div>\n

2.31%<\/span><\/p>\n<\/div>\n

Reservation, net issue<\/p>\n

Qualified institutions up to 50%, non-institutional investors at least 15%, and retail investors at least 35%.<\/p>\n

Against the closest listed peer, Bharti Airtel<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n\n
<\/th>\nJio at \u20b91,119<\/th>\nBharti Airtel<\/th>\n<\/tr>\n
Sales, FY26 (\u20b9 Cr)<\/td>\n1,46,885<\/td>\n2,10,973<\/td>\n<\/tr>\n
Profit after tax (\u20b9 Cr)<\/td>\n30,049<\/td>\n33,823<\/td>\n<\/tr>\n
EBITDA margin (%)<\/td>\n51.91<\/td>\n57.48<\/td>\n<\/tr>\n
PAT margin (%)<\/td>\n20.46<\/td>\n16.03<\/td>\n<\/tr>\n
Return on net worth (%)<\/td>\n9.42<\/td>\n20.32<\/td>\n<\/tr>\n
P\/E<\/td>\n33.19x<\/td>\n38.96x<\/td>\n<\/tr>\n
Net debt \/ EBITDA (x)<\/td>\n0.36<\/td>\n1.36<\/td>\n<\/tr>\n
ARPU (\u20b9 a month)<\/td>\n214.0<\/td>\n257.2<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
\n

Key takeaway<\/p>\n

Nobody is selling in this issue, and \u20b927,500 Cr of the \u20b930,213 Cr raised repays debt. Reliance Industries\u2019 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.<\/p>\n<\/div>\n<\/section>\n

\n

Market leader \u00b7 Falling debt \u00b7 Priced below closest peer<\/p>\n

A clean, improving market leader<\/h1>\n
\n
\n
Wireless broadband share<\/div>\n
49.78%<\/div>\n
Largest in India<\/div>\n<\/div>\n
\n
Listing P\/E<\/div>\n
33.19x<\/div>\n
Airtel: 38.96x<\/div>\n<\/div>\n
\n
Net leverage<\/div>\n
0.36x<\/div>\n
From 0.88x in FY24<\/div>\n<\/div>\n
\n
Return on net worth<\/div>\n
9.42%<\/div>\n
Airtel: 20.32%<\/div>\n<\/div>\n<\/div>\n
\n
\n
In its favour<\/div>\n
\n

Clear market leader<\/p>\n

49.78% of wireless and 43.32% of fixed broadband, per a report the company commissioned.<\/p>\n<\/div>\n

\n

Three years of growth<\/p>\n

Sales, EBITDA and profit rose every year, and both margins widened.<\/p>\n<\/div>\n

\n

Debt falling fast<\/p>\n

Net leverage 0.88x to 0.36x. Cash after capex grew almost 30-fold.<\/p>\n<\/div>\n

\n

Clean audit<\/p>\n

Unmodified opinion in all three years.<\/p>\n<\/div>\n

\n

Money repays debt<\/p>\n

\u20b927,500 Cr of the issue goes to RJIL\u2019s borrowings.<\/p>\n<\/div>\n

\n

Marquee holders stay<\/p>\n

Meta, Google, PIF and KKR are not selling and are locked in for 6 months.<\/p>\n<\/div>\n

\n

Priced below Airtel<\/p>\n

33.19x against 38.96x, 15% lower.<\/p>\n<\/div>\n<\/div>\n

\n
Against it<\/div>\n
\n

Lower ARPU<\/p>\n

\u20b9214.0 a month against Airtel\u2019s \u20b9257.2. Jio is working to raise it.<\/p>\n<\/div>\n

\n

Modest returns<\/p>\n

Return on net worth of 9.42% is well below Airtel\u2019s 20.32%.<\/p>\n<\/div>\n

\n

Customer growth is slower<\/p>\n

Customers grew 8.8% in two years against Airtel\u2019s 18.5%.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n

Our opinion<\/p>\n

Apply for the long term<\/h2>\n

Jio holds almost half of India\u2019s wireless broadband market, debt is falling fast and profits are rising, so we would apply and hold for the long term.<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Jio runs India\u2019s largest 4G and 5G network, plus JioFiber and AirFiber home and business broadband, and a growing set of digital services.<\/p>\n","protected":false},"author":715,"featured_media":23485,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_is2025_no_summary":false,"footnotes":""},"categories":[822],"tags":[],"class_list":["post-23483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo-fpo-analysis"],"_links":{"self":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/23483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/users\/715"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/comments?post=23483"}],"version-history":[{"count":1,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/23483\/revisions"}],"predecessor-version":[{"id":23484,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/23483\/revisions\/23484"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/media\/23485"}],"wp:attachment":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/media?parent=23483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/categories?post=23483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/tags?post=23483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}