Can Jio Platforms IPO deliver long-term growth for high-risk investors?
Jio Platforms, leading India's largest IPO, presents a compelling investment avenue for everyday investors. Despite its massive telecom customer base of 533 million, revenue per user still trails behind Bharti Airtel. However, with a promising growth trajectory in digital services and telecom, this IPO is set to fortify the company's financial standing while decreasing the promoter's stake.…
The impending Jio Platforms IPO, the largest ever in India, presents a compelling investment opportunity for high-risk investors seeking long-term growth. Despite its superlative size, the IPO's valuation appears favorable when compared to its closest peer, Bharti Airtel.
Jio Platforms boasts an impressive subscriber base of 533 million, with 53% of the country's wireless data traffic. This industry-leading scale underscores its numerical superiority in both mobile and broadband markets. However, the company faces challenges in an industry where technology evolves rapidly, necessitating substantial capital investment.
While Jio Platforms' monthly average revenue per user (ARPU) of ₹215.6 is lower than Bharti Airtel's ₹263.9, the latter's Ebitda margin is slightly higher at 56-57% compared to Jio's 50-53%. Nevertheless, Jio's Ebitda margin has improved to 51.9% in the fiscal year 2026, up from 50.2% in the previous year.
The IPO represents only 2.9% of the post-issue capital, with the promoter stake dropping to 64.4% from 66.4% after the IPO. This relative valuation comfort, coupled with Jio's potential to capitalize on opportunities in data centres and AI-related services, justifies retail investors' commitment to the ₹30,213-crore issue.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
