Reliance Jio Infocomm Limited FY25 tariffs raised ARPU, slowed growth

Reliance Jio Infocomm Limited said its Fiscal 2025 (FY25) tariff increase lifted average revenue per user (ARPU) but contributed to higher churn and slower customer additions. RJIL's net additions fell to 6.4 million in FY25 from 42.5 million in Fiscal 2024 (FY24), while exit-quarter monthly churn rose to 1.81% from 1.52%.

How did RJIL's FY25 tariffs raise ARPU but slow growth?

RJIL said its second-quarter FY25 increase in prepaid and postpaid tariffs raised ARPU, while also contributing to higher churn and lower growth in its total customer base. ARPU means average revenue per user, and RJIL identifies tariff adjustments, migration to higher-value plans, digital services added to connectivity plans and increased data consumption as historic ARPU drivers.

The disclosure does not state the size of the FY25 tariff increase or the resulting ARPU amount. It states that the increase was implemented alongside other industry participants and links it to customer behaviour in price-sensitive market segments. The reported outcome was 6.4 million net customer additions in FY25, compared with 42.5 million in FY24.

What do RJIL's customer figures show from FY24 to FY26?

RJIL's figures show that customer additions slowed sharply in FY25 before recovering in Fiscal 2026 (FY26), while exit-quarter monthly churn was highest in FY25. Total customer base means customers of RJIL, its licensed entity, at the end of the exit quarter, while net additions are the difference from the preceding period's closing customer base.

RJIL added 6.4 million customers in FY25, taking its total customer base to 488.2 million as of March 31, 2025. That was below the 42.5 million additions reported in FY24, when the closing base was 481.8 million. In FY26, net additions rose to 36.2 million and the customer base reached 524.4 million as of March 31, 2026.

RJIL's monthly churn was 1.81% in the FY25 exit quarter, 0.29 percentage points above 1.52% in the FY24 exit quarter, before declining to 1.67% in FY26. RJIL defines monthly churn as customers deactivated during the exit quarter divided by the average total customer base in that quarter, divided by three.

Why can RJIL tariffs lead to more customer churn?

A tariff increase can raise ARPU because retained prepaid and postpaid customers pay more, but it can also lead users to consolidate SIM cards, reduce spending or select lower-value plans. RJIL says industry-wide tariff increases, SIM consolidation, deactivation of inactive SIMs and mobile number portability have previously contributed to churn in India's telecom sector.

The FY25 result shows the disclosed trade-off between revenue per user and subscriber growth. RJIL says future tariff increases may face consumer resistance, particularly in price-sensitive segments, causing churn or migration to lower-value plans. The disclosure does not quantify the share of the 1.81% FY25 churn rate caused solely by the tariff increase, so it does not establish a precise causal allocation.

What must hold for RJIL to sustain higher ARPU?

RJIL says sustained ARPU growth depends on customer retention as well as higher-value plans, digital services bundled with connectivity and greater data consumption. Those mechanisms matter because subscriber losses or migration to lower-value plans can limit the revenue effect of a higher tariff.

Competitive and regulatory conditions could constrain RJIL's pricing flexibility after FY25. Competitors may not follow tariff increases or may use promotional pricing, while the Telecom Regulatory Authority of India (TRAI) may introduce tariff floors, ceilings or other pricing interventions. RJIL also says political or public sentiment may make tariff increases harder to implement, and it gives no assurance that future adjustments can be sustained without material customer losses.

Which operating factors could affect RJIL customer retention?

RJIL's ability to retain customers also depends on network reliability, service quality and third-party interconnection or infrastructure providers. RJIL carried about 60% of India's wireless data traffic in FY26, according to the Analysys Mason Report, making service continuity relevant to its 524.4 million customer base as of March 31, 2026.

Cash capital expenditure fell to Rs 34,184.3 crore in FY26, equal to 23.27% of revenue from operations, from Rs 44,268 crore, or 34.53%, in FY25 and Rs 53,509.6 crore, or 48.84%, in FY24. Cash capex is cash outflows for property, plant and equipment, structured and other intangible assets, net of disposal proceeds. RJIL says project delays, funding constraints or technology that does not deliver expected outcomes could affect service levels and customer retention.

Conclusion

RJIL's FY25 disclosure records a defined tariff trade-off: the second-quarter increase lifted ARPU but coincided with exit-quarter churn of 1.81% and net additions of 6.4 million. The FY26 recovery to 36.2 million net additions and churn of 1.67% shows that the FY25 slowdown was followed by continued customer-base growth to 524.4 million.

The next point to watch is whether RJIL can expand ARPU through higher-value plans, digital-service layers and data consumption without material customer losses. RJIL has not disclosed a future tariff plan in this extract and says it cannot assure that future tariff adjustments can be implemented or sustained if competitors offer lower prices or TRAI intervenes.