Jio Platforms Q2 Profit Rises 13.7% as Margins Expand

Jio Platforms Ltd reported a 13.7% year-on-year rise in Q2 FY27 profit to Rs 8,387 crore, supported by subscriber additions, higher ARPU and digital-services growth, while EBITDA margin expanded by 250 basis points to 54.1%. The results followed its Rs 30,188-crore IPO and were accompanied by a share-price gain of more than 3%.

How did Jio Platforms perform in Q2 FY27?

Jio Platforms delivered double-digit growth across revenue, operating profit and net profit in the September quarter. Gross revenue rose 11.3% year on year to Rs 47,485 crore, while revenue from operations increased 11.4% to Rs 40,475 crore. Profit after tax reached Rs 8,387 crore, up 13.7% from the year-earlier period.

The operating performance was stronger than revenue growth alone suggests. EBITDA increased 16.6% to Rs 21,879 crore, allowing the EBITDA margin to rise to 54.1% from 51.6% a year earlier. The reported profit growth was held back to some extent by higher finance costs after 5G assets were capitalised in March.

What drove Jio Platforms' earnings growth?

Jio Platforms' earnings growth was driven by continued subscriber additions, a higher average revenue per user, and expansion in digital services. ARPU rose to Rs 218.8 per month from Rs 211.4 in the corresponding quarter last year, indicating higher revenue generated from the average subscriber.

The company also expanded across mobile and broadband connectivity. Its subscriber base reached 542.4 million, including 300 million 5G users, while fixed-broadband connections crossed 30 million homes. Macquarie pointed to continued subscriber additions and margin expansion at Jio Platforms, while Emkay Global said stronger Jio profitability was a contributor to the broader Reliance earnings beat.

How did Jio Platforms shares react after the results?

Jio Platforms shares rose more than 3% after the quarterly results, reflecting a positive initial market response to the earnings and operating-margin expansion. The stock traded at Rs 1,444 on the NSE at 9:38 am after rising as high as Rs 1,475, compared with a previous close of Rs 1,431.30.

The quarterly update came soon after Jio Platforms completed its Rs 30,188-crore IPO on October 28. The shares listed at a 26.7% premium to the issue price, and the company was reported to have a market capitalisation of around Rs 13.1 lakh crore after listing. About Rs 27,500 crore of the IPO proceeds went towards prepaying external commercial borrowings at Reliance Jio Infocomm.

What does the quarter mean for Reliance Industries?

Jio Platforms added to Reliance Industries' record Q2 FY27 consolidated profit of Rs 29,550 crore, which was up 33.8% year on year and aided by a recovery in the oil-to-chemicals business. Reliance Industries shares surged more than 6% to Rs 1,237.30 on the NSE following the results.

Citi said the strong quarter could support Reliance Industries stock in the near term. However, it also said sustained outperformance would likely require a recovery in retail profitability and better visibility on monetisation from new-energy investments. Reliance Retail remained the weaker segment, reporting an 8.6% decline in EBITDA and a 24.3% fall in profit amid quick-commerce investments, store rationalisation and cost pressures.

Which Jio Platforms metrics will investors track next?

Investors will track ARPU, net subscriber additions, 5G-user growth, fixed-broadband expansion and operating margins for evidence that the current earnings momentum can continue. The Q2 figures show progress on each of these operating measures, particularly the 300 million 5G users and more than 30 million fixed-broadband connections.

The pace of digital-services growth also remains relevant because it was identified as a contributor to revenue growth alongside connectivity services. PL Capital expected Jio's EBITDA to rise sequentially on an approximately 1% ARPU increase to around Rs 218 and subscriber growth of about 8 million, showing that these metrics remain central to market expectations.

Conclusion

Jio Platforms' Q2 FY27 performance showed improved profitability alongside higher revenue, ARPU and subscriber numbers. The 250-basis-point EBITDA-margin expansion and 13.7% profit increase provided the core support for the stock's post-results rise, while the recent IPO gave investors a newly listed vehicle through which to assess the digital-services business directly.

The next results will show whether Jio Platforms can sustain ARPU and subscriber growth while extending 5G and fixed-broadband services. For Reliance Industries, investors will also watch whether retail profitability improves, as the company plans to scale JioMart and its dark-store network while retail investments and costs continue to weigh on earnings.