With the subscription window for Mukesh Ambani-led Reliance Group’s telecom arm, Jio Platforms, set to open on October 21, 2026, Dalal Street investors face an investment dilemma: should they subscribe to the IPO or buy shares of listed rival Bharti Airtel?
The Rs 30,213-crore public offering comprises an entirely fresh issue of 27 crore shares. If completed as planned, it will become India’s largest-ever initial public offering (IPO), surpassing Hyundai Motor India’s record set in 2024.
Jio’s listing will also mark a significant milestone for Reliance Industries, bringing its telecom and digital business to the public markets. The move comes amid a broader generational transition at the conglomerate, with Akash, Anant and Isha Ambani taking on greater responsibilities under Mukesh Ambani’s guidance.
For investors, however, the immediate question is whether Jio’s IPO valuation offers sufficient comfort compared with Bharti Airtel’s listed shares.
Jio IPO vs Bharti Airtel: What do the valuations suggest?
At the upper end of the proposed price band of Rs 1,119 per share, Jio Platforms is valued at 33.3 times FY26 earnings, based on its price-to-earnings (P/E) multiple. This is around 18% below Bharti Airtel’s P/E multiple of 40.71 times.
According to Swastika Investmart, Jio’s enterprise value-to-EBITDA (EV/EBITDA) multiple of around 12 times is reasonable, given its higher market share, double-digit EBITDA growth and expansion in home broadband.
However, the brokerage noted that Jio commands a 15–17% valuation premium over Bharti Airtel’s India business. Airtel, meanwhile, has an edge in return on capital employed (ROCE) and average revenue per user (ARPU).
The valuation comparison, therefore, presents a mixed picture. While Jio’s P/E multiple is lower than Airtel’s, its EV/EBITDA valuation and premium over Airtel’s India operations warrant closer scrutiny.
“At the proposed valuation, Jio trades at a P/E broadly comparable to Bharti Airtel, limiting the scope for an immediate valuation-led upside. Its investment case rests on its larger subscriber base, strong profitability, 5G and broadband monetisation, and growth in digital and AI-led services. Upside will depend on earnings growth, cash flow generation and execution over the medium to long term,” said Ratiraj Tibrewal, director at Choice Capital.
Tibrewal added that Jio’s EV/EBITDA valuation appears higher than Airtel’s, although differences in network infrastructure costs and accounting treatment may affect comparability.
“Airtel has demonstrated stronger ARPU and return ratios, while Jio offers scale-driven growth potential through 5G adoption, fixed broadband expansion and digital services. Key monitorables include tariff hikes, ARPU improvement, EBITDA margins and operating cash flow,” he said.
Jio vs Airtel: What do the numbers indicate?
Ravi Singh, chief research officer at Mastertrust, said investors should compare implied market capitalisation, growth prospects and potential listing gains rather than assume that Jio offers greater upside simply because it is entering the stock market.
“Jio’s forward EV/EBITDA is estimated at 10.9 times versus Airtel 9.2 times. Airtel also commands higher ARPU, around Rs 264 versus Jio’s Rs 216, supporting stronger monetisation. Both companies earnings growth depends significantly on future tariff hikes,” Singh said.
Airtel’s higher ARPU points to stronger revenue generation per user, while Jio’s investment case rests on its subscriber scale and the potential to monetise its expanding digital ecosystem.
For investors, the decision goes beyond headline valuation multiples. Earnings growth, the scope for tariff hikes, broadband adoption and cash generation will be critical in determining whether either company can justify its valuation.
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Jio IPO or Bharti Airtel shares: Where should investors look?
For investors weighing the two options, the distinction, analysts said, is between Jio’s growth and digital monetisation potential and Airtel’s stronger ARPU and return ratios. The choice between these two investment options ultimately depends on the investment case investors are willing to back.
"Jio offers exposure to a large digital ecosystem with opportunities in connectivity, broadband and AI-led services, while Airtel provides an established telecom franchise with a track record of stronger returns on capital. Jio’s investment case will depend on sustained earnings growth, debt reduction and effective monetisation of its network investments. A long-term decision should weigh Jio’s growth potential against Airtel’s operating performance, current valuation and the investor’s risk appetite,” said Tibrewal.
Singh, meanwhile, sees a stronger case for Airtel from a long-term valuation perspective.
“Bharti Airtel appears more attractive for long-term investors due to its stronger ARPU, premium customer base and relatively lower valuation. Jio offers digital services and monetisation potential, but its IPO pricing limits the margin of safety,” he said.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here