Jio Platforms Limited net debt excludes deferred spectrum dues

Jio Platforms Limited reported net debt of Rs 27,579.2 crore at March 31, 2026, but its non-GAAP measure excludes Rs 1,04,513.7 crore payable to the Department of Telecommunications for deferred spectrum payments. The excluded liability exceeded Jio’s Rs 70,781 crore of reported borrowings and changes the scale and maturity profile of its funding commitments.

Why does Jio’s reported net debt exclude spectrum dues?

Jio’s reported net debt excludes deferred spectrum payments because its stated definition covers only current and non-current borrowings less cash and marketable securities. At March 31, 2026, Jio started with total borrowings of Rs 70,781 crore and deducted Rs 43,201.8 crore of cash and marketable securities, producing net debt of Rs 27,579.2 crore. Jio identifies net debt, net leverage and net-debt-to-net-worth as non-GAAP measures, meaning measures not required by, or presented under, Indian Accounting Standards, or Ind AS.

The prospectus states that its net-worth calculation does not include deferred payment liabilities payable to the Department of Telecommunications, or DoT, for spectrum. The deferred payment liability was Rs 1,04,513.7 crore on March 31, 2026, compared with Rs 1,09,145.9 crore on March 31, 2025 and Rs 1,12,843.7 crore on March 31, 2024. Spectrum is an intangible asset used to provide telecommunications services, while the deferred liability is Jio’s obligation to pay DoT over time; Jio includes it in capital employed for its return-on-average-capital-employed calculation.

How much larger are Jio’s spectrum dues than borrowings?

Jio’s deferred spectrum-payment liability was Rs 33,732.7 crore larger than its Rs 70,781 crore of total borrowings at March 31, 2026. The spectrum liability equalled 1.48 times reported borrowings and 3.79 times reported net debt of Rs 27,579.2 crore. A simple addition of borrowings and deferred spectrum liabilities gives Rs 1,75,294.7 crore before cash and marketable securities, although Jio does not report that sum as a debt metric.

Cash and marketable securities of Rs 43,201.8 crore reduce the reported borrowing balance under Jio’s net-debt presentation, but do not reduce the separately disclosed Rs 1,04,513.7 crore spectrum liability. On a simple combined basis, deducting the same cash and marketable-securities amount from borrowings plus deferred spectrum liabilities leaves Rs 1,32,092.9 crore. This is an analytical comparison rather than a replacement for Jio’s reported measure because the company classifies deferred spectrum payments separately from borrowings.

What does the maturity schedule say about Jio’s funding burden?

Jio’s deferred spectrum-payment maturity profile is weighted to obligations due after five years. Rs 77,700.1 crore, or 74.34% of the Rs 1,04,513.7 crore liability, was due after five years at March 31, 2026. The schedule showed Rs 2,638 crore due in three to six months, Rs 2,324 crore in six to 12 months, Rs 10,496.8 crore in one to three years and Rs 11,354.8 crore in three to five years, with no deferred spectrum payment due below three months.

Jio’s contractual borrowing schedule has a shorter profile than its deferred spectrum liability. Of Rs 71,531 crore of contractual borrowings, including Rs 748.1 crore of unamortised finance charges and Rs 1.9 crore of commercial-paper discount, Rs 15,433.8 crore fell due below three months and Rs 19,464.5 crore fell due within 12 months. The schedule also recorded Rs 35,288.1 crore due in one to three years, Rs 9,865.9 crore in three to five years and Rs 6,912.5 crore after five years; gross lease liabilities added Rs 15,713.1 crore of separate obligations.

Has Jio’s reported leverage fallen while spectrum liabilities remain high?

Jio’s reported net leverage fell to 0.36 times earnings before interest, tax, depreciation and amortisation, or EBITDA, in Fiscal 2026 from 0.71 times in Fiscal 2025 and 0.88 times in Fiscal 2024. Net debt declined by Rs 17,694.2 crore from Rs 45,273.4 crore in Fiscal 2025, while EBITDA rose to Rs 76,255.4 crore from Rs 64,170 crore. Total borrowings fell by Rs 2,279.3 crore year on year, while cash and marketable securities increased by Rs 15,414.9 crore.

Deferred spectrum liabilities also declined, but remained above Jio’s borrowing balance in each of the three reported years. The liability declined by Rs 4,632.2 crore between March 31, 2025 and March 31, 2026, following a Rs 8,330 crore decline from March 31, 2024 to March 31, 2025. Jio’s capital-employed calculation includes deferred payment liabilities, and capital employed rose to Rs 4,85,611.9 crore in Fiscal 2026 from Rs 3,69,613.6 crore in Fiscal 2025, while return on average capital employed was 10.76%, down from 12.50%.

What cash flows and plans affect Jio’s ability to meet these obligations?

Jio generated Rs 77,556.3 crore of operating cash flow in Fiscal 2026 and paid Rs 4,736 crore of deferred spectrum liabilities during that year. Cash capital expenditure, defined as cash outflow for property, plant and equipment, spectrum and other intangible assets less disposal proceeds, was Rs 34,184.3 crore in Fiscal 2026, down from Rs 44,268 crore in Fiscal 2025. Net cash used in investing activities was Rs 43,590.9 crore in Fiscal 2026, including capital expenditure, spectrum payments and a Rs 6,400.7 crore net purchase of investments.

Jio stated that it had Rs 16,557 crore in cash and cash equivalents, Rs 26,644.8 crore in current investments and Rs 31,628.6 crore of contractual obligations due in less than one year at March 31, 2026. It said expected operating cash generation, borrowings and proceeds from the Issue would provide sufficient liquidity for present requirements and anticipated capital expenditure and working-capital needs over the following 12 months. Jio also disclosed an intention to repay Rs 27,500 crore of debt with Issue proceeds, while identifying the DoT spectrum obligation separately.

Conclusion

Jio’s reported Rs 27,579.2 crore net debt follows its disclosed non-GAAP definition, but it does not capture all material funding obligations. The Rs 1,04,513.7 crore deferred spectrum-payment liability exceeds total borrowings, remains outside reported net debt and net leverage, and takes the simple combined amount of borrowings and spectrum obligations to Rs 1,75,294.7 crore at March 31, 2026.

The disclosed Rs 27,500 crore debt-repayment plan using Issue proceeds is the next stated development to watch, alongside operating cash flow, capital expenditure and scheduled spectrum payments. With Rs 77,700.1 crore of deferred spectrum payments due after five years, the longer-term profile depends on Jio’s cash generation, financing access and settlement of obligations payable to DoT.