It’s already called the biggest IPO in India, but Reliance Industries Limited is leaving no stone unturned. RIL chairman Mukesh Ambani has reportedly urged all 4.2 Lakh Reliance employees to invest in the IPO, even paying their salaries in advance.
Whether this is a show of strength or a safety net will only become clear after October 23 when the Jio Platforms IPO closes. RIL employees or not, investors will need to look at what can drive Jio’s growth from here and whether its digital businesses can deliver meaningful returns for those who back its IPO .
The company’s ₹30,213 Cr IPO will open for subscription on October 21 and close on October 23, with a price band of ₹1,065–₹1,119 per share. At the upper end, the issue values Jio Platforms at around ₹10.3 Lakh Cr. The offering comprises a fresh issue of up to 27 Cr equity shares, with the proceeds earmarked primarily for repaying certain borrowings of its material subsidiary, Reliance Jio Infocomm (RJIL).
The breadth of the company is central to the investment case. Jio has spent years building a nationwide digital infrastructure and a large base of users who consume data, content and connected services.
Jio Platforms reported revenue from operations of nearly ₹1.47 Lakh Cr in FY26, up from ₹1.28 Lakh Cr in FY25, while net profit rose to ₹30,049 Cr from ₹26,109 Cr. RJIL had 533.3 Mn customers as of June 30, 2026, and Jio’s network carried around 60% of India’s wireless data traffic in FY26, according to its RHP. Its proposition, however, extends beyond mobile connectivity to fixed broadband, entertainment, cloud services, enterprise solutions and artificial intelligence (AI).
But with most of the proceeds earmarked for debt repayment, it is imperative to examine how Jio Platforms makes money, whether its digital and AI ambitions can become meaningful growth engines, and what investors need to weigh against its scale and profitability.
How Jio Platforms Makes Money
Jio Platforms’ multifaceted business model rests on a simple premise: attract customers through connectivity and earn more from them through a range of digital services.
The company operates through RJIL, its licensed telecom subsidiary, which provides mobile connectivity and fixed broadband. Other offerings span digital entertainment, gaming, cloud storage, smart-home solutions, enterprise connectivity and managed services. These include JioFiber, JioAirFiber, JioTV+, JioSaavn, JioAICloud, JioPC and JioBrain.
For now, the financial trajectory remains closely linked to the underlying telecom business.
Jio Platforms’ EBITDA rose 18.8% to ₹76,255 Cr in FY26, while the EBITDA margin expanded to 51.91% from 50.05% in FY25. “The margin improvement suggests that the company has been able to grow earnings faster than revenue, although investors will need to track how future network investments, depreciation and financing costs affect profitability,” an analyst at a leading brokerage firm said.
The next question is how much more Jio can earn from its existing customer base.
In the quarter ended June 2026, Jio’s average revenue per user (ARPU) rose 3.26% to ₹215.60 compared with ₹208.80 a year earlier. Monthly data consumption also increased to 43.7 GB per customer from 37 GB.
These numbers point to a customer base that is using more data and generating more revenue per user. But rising consumption does not automatically translate into proportionate revenue growth. The company still needs to convert usage into higher-value plans, additional subscriptions and greater adoption of services beyond basic connectivity.
Monetising Digital Services And AI Bets
Jio’s digital-services narrative is built on the idea that its network, customer base and technology stack can support businesses beyond telecom. Its reach gives it a ready distribution channel: it can introduce digital products to millions of existing customers without having to acquire every user independently.
The company’s fixed broadband business illustrates how it is extending that infrastructure into adjacent markets. Jio’s fixed broadband customer base grew from 11.2 Mn in March 2024 to 28.6 Mn in June 2026, including 14 Mn JioAirFiber customers. The fixed wireless access service uses its 5G infrastructure to connect homes without requiring a physical fibre connection to every premises, potentially making expansion faster in areas where laying fibre is difficult.
The opportunity is significant because broadband can deepen household engagement beyond mobile data. JioHome combines connectivity with entertainment and smart-home services, while JioTV+ aggregates television channels and streaming services. JioAICloud offers cloud storage with AI-supported features, and JioPC provides cloud-based computing. JioAICloud had approximately 66 Mn registered users as of June 30, 2026, according to the RHP.
However, registered users are not the same as paying subscribers, and this is where the distinction between reach and monetisation becomes critical. A large user base can help a platform distribute new products, but the financial value depends on conversion rates, repeat usage, willingness to pay and the cost of delivering the service.
The same scrutiny applies to Jio’s AI ambitions. The company says its proprietary AI engine, JioBrain, is embedded across network operations to support capacity allocation, fault prediction, resolution and real-time optimisation. It intends to extend these capabilities to other telecom operators and enterprise customers, alongside AI-powered customer services and automation tools.
These ambitions could open up a different growth avenue. Rather than earning primarily from millions of individual mobile subscriptions, Jio could potentially sell technology, network-management capabilities and enterprise AI solutions to businesses. But this remains a proposition that is yet to prove.
What Does Jio Platforms Offer Beyond Scale?
Jio enters the public markets with a sizable customer base, expanding revenue and strong EBITDA margins. But the IPO valuation puts the spotlight on how much growth investors are already paying for.
At the upper end of the ₹1,119 price band, Jio Platforms is valued at around ₹10.3 Lakh Cr. This gives the listing importance beyond the company itself: it will create a standalone market benchmark for a business that has so far been housed within Reliance Industries.
Brokerage comparisons with Bharti Airtel underline the debate. Nomura estimates Jio’s implied FY28 enterprise value-to-EBITDA multiple at around 10.5-10.9X, compared with 9.2X for Airtel’s India telecom business.
The comparison also highlights the role of tariffs in future earnings. A price increase could lift ARPU across the sector, but the impact will depend on how customers respond, including whether they upgrade or downgrade plans, or leave the network.
Jio’s wide customer base gives it reach, but its ability to translate higher prices into sustained revenue growth will depend on customer retention and the value it delivers. The one thing in Jio’s favour in this regard is that it has just Airtel as the competition at the top end. The two big players usually raise prices in unison which leaves little room for customer attrition.
The IPO’s use of proceeds presents another important consideration. Jio Platforms plans to use up to ₹27,500 Cr of net proceeds to prepay, in full or in part, certain borrowings taken by RJIL, with the balance available for general corporate purposes subject to the offer-document conditions. This makes the issue partly a balance-sheet exercise. If it wasn’t clear already, this means investors should not treat the proceeds as funding that will automatically translate into new growth projects.
The offering is also a fresh issue rather than an offer for sale, meaning the proceeds go to the company rather than existing shareholders selling down their holdings. RIL is expected to remain the controlling shareholder after the listing, with its stake declining from around 66.4% to approximately 64.5% following the issue.
The company will also need to continue investing in infrastructure as data usage grows and technologies evolve. Strong EBITDA margins offer financial capacity, but, for investors, the billion-dollar question is whether Jio’s digital ambitions can live up to its lofty valuation.
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[Edited by Shishir Parasher]
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