Jio IPO: What Is the Hype About? The Company That Changed How India Uses the Internet

Oct 22

8 min read

India’s largest IPO has opened to strong demand. But behind the headlines lies a bigger story: how one company transformed mobile internet access, built a 500-million-plus customer base and is now asking public-market investors to value its next phase of growth.

India's largest-ever IPO is now open for subscription, and the excitement around Jio Platforms is understandable.

The company is seeking to raise ₹30,213 crore at a price band of ₹1,065–₹1,119 per share, valuing the business at approximately ₹10.3 lakh crore at the upper end. On October 21, the first day of bidding, the issue received bids for more than three times the shares on offer, with qualified institutional buyers leading demand. The IPO closes on October 23, with listing scheduled for October 28, 2026.

But the Jio story is much bigger than a large IPO.

A decade ago, mobile internet in India was expensive enough that many consumers rationed their data usage. Today, millions of Indians stream videos, attend online classes, make digital payments and run businesses from their phones.

Jio played a major role in that transition.

The question for investors now is whether the company that helped create India's digital revolution can translate its scale into enough future earnings growth to justify its valuation.

1. Before Jio, mobile internet was a luxury. After Jio, it became infrastructure.

To understand the IPO, it helps to revisit 2016.

India already had a large mobile market, but internet access was held back by high data costs, limited 4G availability and the economics of using mobile data for everyday activities.

For many consumers, watching a video, downloading a large file or spending extended periods online meant keeping an eye on data usage. Mobile internet was useful, but it was not yet the always-on utility it has become for much of the country.

Then Reliance Jio entered the market.

Jio launched commercial services in September 2016 with free introductory voice and data offers, followed by aggressively priced plans. Its strategy was straightforward: make data affordable enough that consumers would use much more of it.

The effect extended well beyond the company's own customer base. Competing telecom operators had to respond with lower prices, bundled data plans and greater investment in 4G networks. The industry went through consolidation, and surviving operators increasingly shifted their focus towards data services.

Reliance itself describes the transformation in striking terms: before Jio's launch, India ranked 155th in mobile data consumption; within less than a year, it had moved to the top of the global rankings for mobile broadband data consumption.

The precise contribution of any single company to a nationwide change is difficult to isolate. Affordable smartphones, expanding network coverage and government-led digital initiatives also mattered. But Jio's pricing strategy was a major catalyst.

How the change reached everyday India

The transformation was not confined to telecom statistics.

Entertainment: Video streaming and online content became more accessible to users who previously had to ration their data.
Education: Students gained more affordable access to online lectures, study material and digital learning platforms.
Small businesses: Merchants and entrepreneurs could communicate with customers, promote products and use digital tools at a lower connectivity cost.
Digital payments: Affordable internet made it easier for more people to access UPI applications, banking services and other online financial tools.
Work and communication: Video calls, cloud-based tools and instant messaging became more practical for households and businesses.

Jio did not invent these services. It helped make the connectivity required to use them routinely affordable for a much larger population.

That is the strategic significance of the business: Jio helped turn mobile data from a paid-for convenience into essential digital infrastructure.

2. How did Jio turn cheaper data into a valuable business?

Lower prices alone do not create a profitable telecom company. In fact, aggressive pricing can destroy industry profitability if operators cannot eventually earn adequate returns.

Jio's business model depended on building scale first and monetising that scale over time.

The logic has three parts.

First, acquire customers. Low introductory prices and an extensive 4G rollout helped Jio attract subscribers rapidly.

Second, increase usage. As customers began consuming more data, mobile internet became a more integral part of daily life. Jio could serve more digital activity over its existing network, subject to the additional capacity and investment required.

Third, improve revenue per user. Once customers rely on connectivity for everyday activities, tariff increases, premium plans and higher-value services can improve revenue per subscriber.

The company has also expanded into 5G, home broadband, enterprise connectivity and digital services. These businesses provide opportunities to earn more from an established customer relationship.

The results are visible in its financial performance. According to Jio Platforms' SEBI-filed offer document, average monthly revenue per user (ARPU) rose from ₹181.70 in FY2024 to ₹206.20 in FY2025 and ₹214 in FY2026.

That is the commercial evolution investors need to understand: the company first helped expand the market for mobile data, and now it must demonstrate how effectively it can monetise that market.

3. Jio IPO: The numbers investors need to know

The financial figures provide a clearer picture than the headline valuation alone.

Jio Platforms' offer document reports the following performance:

Financial indicator	FY2024	FY2025	FY2026
Revenue from operations	₹1,09,558 crore	₹1,28,218 crore	₹1,46,885 crore
EBITDA	₹54,959 crore	₹64,170 crore	₹76,255 crore
EBITDA margin	50.16%	50.05%	51.91%
Profit after tax	₹21,423 crore	₹26,109 crore	₹30,049 crore
PAT margin	19.55%	20.36%	20.46%
ARPU, per month	₹181.70	₹206.20	₹214.00

Source: Jio Platforms' SEBI-filed offer document. Figures rounded for presentation.

Three trends stand out.

Revenue is growing, but profitability matters more

Revenue increased from approximately ₹1.10 lakh crore in FY2024 to ₹1.47 lakh crore in FY2026. Profit after tax rose from approximately ₹21,423 crore to ₹30,049 crore over the same period.

This indicates that growth has translated into higher reported earnings, rather than simply a larger customer base.

Margins have improved

The EBITDA margin increased from 50.16% in FY2024 to 51.91% in FY2026. The net profit margin also rose to 20.46%.

For investors, sustained margins would suggest that Jio can increase revenue without allowing operating costs to rise at the same pace.

However, EBITDA excludes interest, tax, depreciation and amortisation. It should not be treated as cash available to shareholders.

Debt relative to earnings has declined

The offer document reports net leverage of 0.88 times in FY2024, 0.71 times in FY2025 and 0.36 times in FY2026.

That is a meaningful improvement in the company's reported leverage position.

Investors should still examine absolute debt, lease liabilities, capital expenditure and free cash flow. Telecom networks require continuous investment, and the next phase of 5G and digital infrastructure expansion could absorb substantial cash.

4. What exactly are investors buying in this IPO?

The IPO is for Jio Platforms Limited, the digital services holding company that houses the telecom business and related digital operations. It is not an IPO of the entire Reliance Industries group.

The offering is structured as a fresh issue of up to 27 crore shares, with no offer for sale. At the upper price band of ₹1,119, the issue size is approximately ₹30,213 crore.

IPO detail	Information
Issue opens	October 21, 2026
Issue closes	October 23, 2026
Price band	₹1,065–₹1,119 per share
Issue size	Approximately ₹30,213 crore
Valuation at upper band	Approximately ₹10.3 lakh crore
Lot size	12 shares
Minimum application at upper band	₹13,428
Tentative listing date	October 28, 2026

Source: Jio Platforms' offer documents and published IPO details.

The proceeds are intended primarily to repay or prepay borrowings at Reliance Jio Infocomm, alongside general corporate purposes.

This distinction is important. Because it is a fresh issue, the money raised goes to the company rather than directly to existing shareholders selling their holdings. Reducing subsidiary borrowings could strengthen financial flexibility, although investors should assess the full capital structure before drawing conclusions.

5. The IPO is already attracting strong demand. What does that tell us?

The latest completed subscription session available for this article is October 21, the first day of bidding.

Reuters reported that the issue was subscribed approximately 3.16 times by the end of that day, after being covered in less than two hours. Institutional investors drove the early response.

The issue remains open on October 22 and closes on October 23. Subscription figures can change throughout the bidding window.

Strong demand indicates that investors are interested in gaining exposure to Jio Platforms. It does not establish that the offer price is cheap.

This is an important distinction because IPO demand can be influenced by several factors: the company's brand, its perceived growth prospects, limited availability of shares, institutional allocations and expectations of listing gains.

The grey-market premium is also being closely watched, but it is an unofficial indicator that can change quickly and is not a reliable measure of intrinsic value.

For long-term investors, the more important question is what the offer price implies about future earnings.

6. Is Jio worth a valuation of ₹10.3 lakh crore?

At the upper end of the price band, Jio Platforms is valued at approximately ₹10.3 lakh crore.

Using FY2026 profit after tax of ₹30,049 crore, the implied price-to-earnings ratio is approximately 34 times historical earnings.

This is an indicative calculation based on the reported valuation and FY2026 profit. It is not a forecast of future returns.

A valuation of around 34 times earnings is neither automatically attractive nor automatically excessive. It depends on the rate and durability of future earnings growth, the risks involved and the alternatives available to investors.

For example, if earnings continue growing strongly for several years, today's valuation could become more reasonable relative to future profits. If earnings growth slows or new investments generate lower returns than expected, the same valuation could prove demanding.

Jio's scale and competitive position are important advantages. But the IPO price already reflects a business with substantial earnings and an established market position. Investors need to judge how much additional growth remains to be captured.

7. Where could Jio grow from here?

The next phase of the business is likely to depend on three broad opportunities.

Higher ARPU and 5G monetisation

Jio can seek to increase revenue through tariff revisions, premium plans and greater use of 5G services. The challenge is to improve revenue per user without encouraging customers to switch to competitors.

Home broadband and enterprise connectivity

Fibre broadband, fixed wireless access and enterprise services could allow Jio to expand beyond mobile subscriptions. Business customers may also require cloud connectivity, managed networks and other services that can create additional revenue streams.

AI, cloud and digital infrastructure

Artificial intelligence is increasing demand for computing power, data centres and reliable connectivity. Jio's network and existing digital ecosystem could provide a foundation for participation in these markets.

However, this opportunity needs to be assessed carefully. AI infrastructure requires substantial capital, and the ability to attract customers at profitable prices will determine whether these investments create shareholder value.

The prospect of entering a large market is not the same as earning an attractive return from it.

8. What are the biggest risks for investors?

The Jio investment case has genuine strengths, but investors should consider four risks.

Valuation risk: A strong business can deliver disappointing stock returns if investors pay too much for its expected growth.
Competitive risk: Telecom remains capital-intensive, and Jio must continue investing while competing with Bharti Airtel and other operators.
Capital expenditure risk: 5G, fibre, spectrum and emerging technology investments can absorb cash even when reported profits are rising.
Execution risk: New digital and AI-related businesses may take longer to become profitable than investors expect.

There is also a concentration issue within the broader business. Reuters reported that close to 90% of Jio Platforms' revenue comes from telecom operations.

That means investors should not value the company as though it were already a diversified technology conglomerate with several equally mature profit engines. The core telecom business remains central to the investment case.

The Infnmoney takeaway: Don't confuse a digital revolution with a guaranteed investment return

Jio's contribution to India's digital transformation is substantial. It helped make mobile data more affordable, accelerated industry-wide changes and enabled millions of people to participate more actively in the digital economy.

Its financial performance also shows a business with growing revenue, rising profits and improved reported leverage.

But the IPO presents a different question from the one Jio answered in 2016.

Back then, the opportunity was to make internet access affordable for a much larger population. Today, the opportunity is to convert that scale into sustained earnings and cash flow while investing in the next generation of digital infrastructure.

At approximately ₹10.3 lakh crore, investors are being asked to pay for a business that is already large and profitable, with further growth expected.

Our view: Jio deserves serious consideration, but the strength of its brand and the demand for its IPO should not replace valuation analysis. Investors should assess the offer price against earnings, cash flow, capital expenditure and realistic growth expectations. Those looking primarily for listing gains should recognise that strong subscription demand does not guarantee a profitable listing.