The continued momentum assumes significance ahead of Jio’s planned listing by the first half of 2026, with higher average revenue per user (Arpu) and improved profitability seen as critical to securing a stronger IPO valuation.
Jio and its parent Reliance Industries Ltd (RIL) are set to report their quarterly results on Friday, 16 October.
Revenue and profit outlook
During the September quarter, Jio Platforms Ltd, which houses RIL’s telecom and digital services businesses, is expected to report a 3% sequential and 14% year-on-year rise in revenue from operations to about ₹36,000 crore, according to brokerage estimates.
In the June quarter, Jio had posted a 3.07% sequential growth in revenue.
According to estimates from Axis Capital, the company’s net profit is expected to grow 5.2% QoQ (quarter-on-quarter) and 14.4% YoY (year-on-year) to ₹7,481 crore in the July-September quarter.
“Jio is expected to see the fastest top-line growth, supported by healthy net adds,” Axis Capital said in a note dated 9 October.
Premiumization push
The company’s core telecom arm, Reliance Jio Infocomm, saw a steady rise in Arpu this quarter, driven by higher data usage and a limited tariff intervention, such as the removal of its 1GB base plan from online recharge portals.
Analysts expect 1–2% sequential Arpu growth from ₹208.8 in the previous quarter.
According to BNP Paribas, Jio Infocomm’s revenue may grow 2.5% QoQ and 11.7% YoY to ₹31,654 crore in the September quarter.
“A minor tariff tweak in August could lead to slightly higher QoQ growth for Jio. Jio’s subscriber growth QoQ should be higher versus Airtel,” BNP Paribas said in a 13 October note.
Recently, Jio also removed the entry-level 1 GB plan from its online recharge. Analysts such as brokerage Macquarie saw that as a way for the company to close the gap with Bharti Airtel, with a focus on premiumization.
Earnings growth beyond mobile
Jio Platforms’ Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) is expected to rise 17% YoY, led by strong growth and better margins in its digital services business spanning enterprise, cloud and content.
The company has been focusing on its internet of things (IoT) and artificial intelligence (AI) offerings including Jio PC, a service that converts televisions into AI-enabled computers, for its foray into digital products. In August, Jio also talked about launching Jio Frame, a smart glass with a multilingual AI voice assistant and camera.
In the June quarter, Jio’s Ebitda grew 24% YoY and 6.6% sequentially to ₹18,135 crore, with margins improving 1.7 percentage points to 51.8%.
As of June-end, Jio had 498 million mobile subscribers, including 213 million 5G users, up from 191 million in the March quarter. Analysts expect Jio to add 3–5 million new subscribers in the July–September period, pushing its total user base past the 500-million mark.
“Fixed wireless access (wireless broadband) should continue to increase on healthy user traction, reflected in accelerating subscriber additions,” said Axis Securities. “Standalone Jio Platforms (JPL), which is primarily Jio’s enterprise segment, should continue to see strong growth.”
Broadband leadership
Jio’s fixed wireless access (FWA) base stood at 7.4 million users as of June-end. FWA delivers high-speed home or business internet using wireless signals instead of cables such as fiber.
“Jio AirFiber is now the largest FWA service provider in the world, with a base of 7.4 million subscribers,” said Mukesh Ambani, chairman and managing director of RIL, in the company’s June-quarter earnings release.
On Friday when the company will declare its earnings, investors will keep a close watch on the management’s commentary on the update of its IPO proceedings, tariff hikes, growth in enterprise and AI offerings, and its plans to improve the profitability.
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