Jio Platforms Free Cash Flow Rises as 5G Capex Falls

Jio’s cash flow shift

Jio Platforms is moving beyond the most capital-intensive stage of its 5G network build-out. The change is visible in its falling cash capital expenditure over the past three financial years. At the same time, revenue, EBITDA and operating cash flow have increased. This has expanded the cash remaining after network investment. Nomura has identified the trend as a key support for Jio’s performance ahead of its expected October 28 share debut. The brokerage also expects steady tariff hikes and home broadband growth to support the business. However, lower capex alone does not guarantee conventional free cash flow growth. Interest, lease obligations, spectrum payments and future investments remain relevant.

Cash capex has declined sharply

Jio’s cash capex fell to ₹34,184 crore in FY26 from ₹44,268 crore in FY25. It had stood at ₹53,510 crore in FY24. That represents a decline of about 36% between FY24 and FY26. Network capex declined to ₹29,377 crore in FY26. The comparable network capex was ₹40,617 crore in FY25 and ₹48,574 crore in FY24. The trend reflects moderation in the heavy investment cycle linked to network development and 5G expansion. Jio has therefore been spending less cash on physical network infrastructure. The reduction is the central driver of the improvement in cash available after capex.

Capex intensity has nearly halved

Cash capex accounted for 48.8% of revenue in FY24, according to the brokerage discussion. By FY26, the proportion had fallen to 23.3%. Nomura similarly estimated FY26 capex at around 23% of revenue, compared with roughly 35% in FY25. This matters because a lower share of revenue is being absorbed by infrastructure spending. Revenue from operations reached ₹1.47 lakh crore in FY26. Jio reported EBITDA of ₹76,255 crore for the year. Its EBITDA margin was about 52%, with another cited measure putting it at 51.9%. The figures show operating earnings rising while capital demands eased.

Operating cash flow moved higher

Net cash flow from operating activities rose in each of the three reported years. It increased from ₹57,661.6 crore in FY24 to ₹68,155.7 crore in FY25. It then reached ₹77,556.3 crore in FY26. The growth in operating cash flow occurred alongside the reduction in cash capex. As a result, the gap between cash generated and cash invested widened significantly. That gap is useful for assessing the financial effect of a completed investment cycle. It should not, however, be treated automatically as reported free cash flow. The prospectus-related commentary specifically notes that operating performance and future investment requirements will determine future cash generation.

The cash figures show the trend

The following figures summarise the improvement in operating cash flow less cash capex. This is a research measure rather than Jio’s reported free cash flow. It excludes or may not fully capture several cash claims that matter to investors. These include interest payments, leases, deferred spectrum payments and other commitments. Even with that limitation, the direction of change is clear. Lower network spending has left substantially more cash after capex. The table uses the figures cited in the provided discussion. All amounts are in ₹ crore.

EBITDA after capex also expanded

EBITDA less cash capex rose from about ₹1,449 crore in FY24. It increased to ₹19,902 crore in FY25. In FY26, it reached ₹42,071 crore. This measure indicates how much EBITDA remained after cash investment in the network. It is another sign that Jio is transitioning from building infrastructure to earning from it. Still, EBITDA less capex is not the same as free cash flow available to shareholders. Taxes, spectrum purchases, data-centre investments and planned AI infrastructure can draw on that amount. Investors will need to track those uses of cash as the company develops.

The June quarter pointed the same way

The figures for the April-June 2026 quarter showed a similar pattern. Revenue rose 11.8% year-on-year to ₹39,173 crore. The EBITDA margin improved to 53.3%. Cash capital expenditure declined to ₹4,184 crore from ₹12,048 crore a year earlier. EBITDA less capex for the quarter was ₹16,681 crore. Profit rose 9.2% to ₹7,764 crore. These numbers support the view that capex intensity has reduced after the major rollout phase. They do not establish that future quarterly capex will remain at the same level.

Broadband is the second growth engine

Nomura has identified home broadband as Jio’s second growth engine. The brokerage links this opportunity to Jio’s extensive network infrastructure and market leadership. Higher home broadband adoption could support revenue growth without requiring a return to the earlier level of network investment. Steady tariff hikes are another factor in Nomura’s outlook. The brokerage said Jio’s network strength and leading subscriber market share support long-term value creation. Nomura’s cited target price is ₹1,340, below the ₹1,358 debut referenced in the social-media discussion. Its positive view is therefore tied to operating and cash-flow execution rather than an assumption that risks have disappeared.

Risks remain after the investment cycle

The key risk is that lower capex may not convert into stronger free cash flow as quickly as expected. Delayed tariff hikes could affect operating performance. Execution in digital services is another identified uncertainty. Jio also retains capital expenditure requirements and dependence on infrastructure providers. Cybersecurity, privacy, spectrum licence dependence and possible network disruptions were highlighted by SBI Securities. The proposed repayment of Reliance Jio Infocomm borrowings is expected to lower leverage and finance costs, subject to execution. Nomura expects Jio Platforms to become net debt-free by FY29, but this is a forecast rather than a confirmed outcome. Deven Choksey has also said a dividend policy could begin from the next financial year, potentially returning up to 50% of free cash flow, but this remains an expectation rather than a declared policy.