Jio Platforms IPO: Valuation, Debt and Growth Risks

A record-sized issue

Jio Platforms has launched a ₹30,213 crore initial public offer. The issue is entirely a fresh issue. It involves 27 crore shares. The price band is ₹1,065 to ₹1,119 per share. The offering ran from October 21 to 23, 2026. At the upper end, it exceeds Hyundai Motor India’s ₹27,870 crore issue. That would make it India’s largest IPO. The implied company valuation is around ₹10.3 lakh crore.

What the offer proceeds will fund

Debt repayment is the central use of proceeds. Jio proposes ₹27,500 crore for RJIL borrowings. RJIL is Jio Platforms’ material subsidiary. The repayment or prepayment covers certain outstanding borrowings. This makes the offering partly a balance-sheet exercise. Lower borrowings could reduce interest costs. It could also improve financial flexibility. Investors must therefore assess growth alongside deleveraging.

Financial performance in focus

Revenue from operations rose during FY26. It reached ₹1,46,885.3 crore from ₹1,28,218.4 crore in FY25. EBITDA increased to ₹76,255.4 crore. EBITDA was ₹64,170 crore in FY25. Profit after tax rose to ₹30,049.1 crore. FY25 profit after tax was ₹26,109 crore. Q1 FY27 revenue was ₹39,172 crore. Q1 FY27 profit after tax was ₹7,764 crore.

Subscriber scale supports the investment case

RJIL had 533.3 million customers on June 30, 2026. The corresponding FY26 figure was 524.4 million customers. Jio had 49.8% of India’s mobile broadband market. Its network carried around 60% of wireless data traffic in FY26. Wireless broadband coverage exceeded 99% of India’s population. Average revenue per user was ₹215.6 monthly in Q1 FY27. FY26 average revenue per user was ₹214. Jio’s scale remains a key factor for investors.

Infrastructure and technology platform

Jio had access to 3.60 lakh network towers. Most of those towers were fibreised. Its fibre network spans over 10 lakh route kilometres. It also includes more than 3 crore fibre-pair kilometres. Jio held 26,800 MHz of spectrum in June 2026. The remaining average spectrum life was about 15.8 years. It had filed 7,220 patent applications. These applications covered network and digital technologies.

Digital services are the next growth test

The company combines mobile, fixed broadband and digital services. Its consumer products include JioTV+, JioSaavn and JioGames. Other offerings include JioAICloud and JioPC. Enterprise offerings include cloud, IoT and cybersecurity services. Jio Platforms’ standalone digital-services revenue rose to ₹16,167 crore in FY26. That compares with ₹7,571 crore in FY24. The annualised increase over that period was 46%. Execution in these businesses will shape longer-term growth.

How the valuation is being viewed

At ₹1,119, the stated P/E was 33.28 times. Another market view placed FY26 P/E at 34.3 times. FY26 EV/Ebitda was cited at 14.8 times. A separate assessment placed EV/Ebitda at 12 times. These figures reflect differing valuation approaches in market commentary. Supporters cite Jio’s market position and profitability. They also point to broadband, cloud and AI opportunities. A premium valuation can limit near-term upside if expectations weaken.

Debt, capex and competitive risks

Jio Platforms reported borrowings of ₹61,372.2 crore on June 30, 2026. Borrowings were ₹70,781 crore on March 31, 2026. Net debt stood at ₹9,539.1 crore. Net leverage was 0.46 times. Telecom operations require continuing infrastructure investment. Licence fees and spectrum charges were ₹11,710 crore in FY26. Those charges were ₹3,107 crore in Q1 FY27. Competition from Bharti Airtel and Vi remains a material consideration.

Subscription and investor takeaways

NSE data cited bids for 11,41,67,880 shares. That represented 57% of the 19,75,25,934 shares on offer. Short-term investors may focus on listing gains. Long-term investors may focus on customer scale and digital expansion. The issue offers a route for new public investors. It also aims to strengthen the underlying balance sheet. Key risks include regulation, spectrum availability and cybersecurity. Investors must weigh valuation against execution in new services.