ET Intelligence Group: India's largest IPO to date offers a theoretically compelling reason - beyond its superlative size - for retail investors to dial into Jio Platforms: Valuation comfort relative to its closest peer Bharti Airtel. Of course, that shouldn't hide the challenges Jio faces in an industry where technology changes faster than seasons, creating a perennial demand for hefty capital.

On paper, Jio has industry-leading scale with 533 million telecom customers that underscores numerical superiority in both the mobile and broadband markets. But Jio's monthly average revenue per user (ARPU) at ₹215.6 trails Bharti Airtel's ₹263.9 (India business) as of June 2026 quarter. On the profitability front, too, Jio's Ebitda margin range of 50-53% lags 56-57% range for the closest peer. The IPO forms only 2.9% of the post-issue capital. The promoter stake will fall to 64.4% after the IPO from 66.4%. Relative valuation comfort, however, leaves sufficient room for upside - and justifies retail commitment to the ₹30,213-crore issue.

ET Bureau

Incorporated in 2019, Jio Platforms offers digital connectivity and services pan India through its subsidiary Reliance Jio Infocomm (RJIO), which holds the spectrum licences for wireless telecom services. Jio Platforms provides wireless connectivity, fixed broadband, enterprise and cloud services, and AI services. It is India's largest digital connectivity platform, carrying over 60% of the country's wireless data traffic in FY26. It had 284.9 million 5G subscribers as of June 2026, forming 53% of its total subscriber base. It operates one million route kilometres of fibre network across India. Its spectrum holding was 26,800.8 megahertz (MHz) as of June 2026, the highest among telecom operators in India and with a remaining average life of 15.8 years.

Read more: From ₹228 a GB to ₹7.5: How Mukesh Ambani’s Jio rewired India’s internet and is now seeking a ₹10 lakh crore valuation

Consolidated revenue increased by 15.8% annually between FY24 and FY26 to ₹1,46,885.3 crore. Net profit rose by 18.4% annually to ₹30,049 crore during the period. While RJIO continues to be the major contributor to the total revenue of Jio Platforms, its share fell to 87.7% in FY26 from 91.4% in FY24. The share of digital services rose to 11% from 6.9% during the period. The operating margin before depreciation and amortisation (Ebitda margin) improved to 51.9% in FY26 from 50.2% in FY24. In the June 2026 quarter, revenue and net profit increased 11.8% and 9.2% to ₹39,172.9 crore and ₹7,764.1 crore while Ebitda margin expanded by 150 bps to 53.3% YoY.

Read more: Jio IPO vs Airtel shares: Which telecom giant offers greater valuation comfort to investors?

Considering post-IPO equity, Jio Platforms demands a price-earnings multiple of 34.3 on FY26 earnings and 33.2 on annualised June 2026 quarter earnings. Bharti Airtel trades at an FY26 P/E of 43.8 and forward P/E of 35.8. Given the improving data traffic, and traction in data centres and AI related services, Jio Platforms looks well placed to take advantage of these opportunities.