Can Jio's massive scale turn into stronger returns for investors?
Moody's examines whether Jio Platforms can convert its subscriber base into revenue growth and better returns on capital ahead of its Rs.30,213 crore IPO.
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what happened
According to Moody's, Jio Platforms' market-leading scale and faster revenue growth than listed telecom rivals underpin its Rs.30,213 crore initial public offering. The central question for investors is whether its 533.3 million customers can translate into higher spending and better returns on capital. Consolidated revenue grew at a 15.8% compound annual rate between FY24 and FY26, versus 13.3% for Bharti Airtel and 2.6% for Vodafone Idea.
Analysts disagree on valuation. Emkay values Jio at 15.6 times FY26 EV/Ebitda and recommends subscribing, while Centrum uses 12 times estimated FY28 Ebitda. Jio's ARPU was Rs.214 in the March 2026 quarter, against Rs.257.2 for Airtel's India mobile business, and its return on capital employed fell from 12.83% to 10.76%. The price band is Rs.1,065-1,119 a share, and the issue opens Wednesday and closes Friday.
why it matters
Beyond the size of the offering and a grey market premium of about 22.5%, the use of proceeds matters. Roughly 91% of gross proceeds will repay debt, which should lower financing costs and add flexibility. For Bharti Airtel and Vodafone Idea, the IPO sets a valuation reference for India's telecom sector, and a tariff increase that some analysts expect could shift ARPU across the industry.
market impact
Indian telecoms: Jio's IPO valuation sets a reference point for Airtel and Vodafone Idea
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sources
- Can Jio's massive scale convert into superior returns? — Moody's, 20 October 2026 at 03:05 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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