Reliance Industries subsidiary Jio reported strong financial performance for the December quarter, with profit after tax surging 11.30% year-on-year to ₹7,629.00 crore. The telecom major's revenue from operations grew 12.70% YoY to ₹43,683.00 crore, demonstrating robust business momentum across its service offerings. The company's subscriber base crossed a significant milestone, reaching 515.30 million users.

Financial Performance Highlights

The company's key financial metrics showed consistent improvement across parameters, with strong year-on-year growth driven by subscriber additions and ARPU improvements. Jio's EBITDA increased 16.40% to ₹19,303.00 crore, with margins expanding 170 basis points to 51.80%, reflecting improved operating leverage.

For the nine-month period, profit stood at ₹22,114.00 crore, up from ₹19,086.00 crore a year earlier, showcasing sustained performance momentum.

Subscriber Growth and ARPU Performance

Jio added nearly 9.00 million subscribers during the December quarter, taking its total user base to 515.30 million. The company's average revenue per user (ARPU) reached ₹213.70, marking a 5.10% year-on-year growth. This ARPU improvement was driven by higher data consumption and steady upgrades to premium plans.

Total data traffic jumped 34% year-on-year to over 62 exabytes, with per-capita usage maintaining strong levels at 40.70 GB per month.

5G and Broadband Expansion Milestones

Jio's 5G subscriber base crossed 250.00 million, now accounting for more than half of wireless data traffic. This significant adoption rate reflects the successful rollout and customer acceptance of next-generation services across the network.

In the fixed broadband segment, total connected premises reached 25.30 million during the quarter. JioAirFiber achieved a global milestone by becoming the first fixed wireless access service to surpass 10.00 million subscribers, ending the quarter with 11.50 million users.

Digital Media and Strategic Outlook

At the group's digital media arm JioStar, revenue for the quarter stood at ₹8,010.00 crore, with EBITDA of ₹1,303.00 crore. The platform averaged 450.00 million monthly active users, while its television network strengthened its leadership position with a 34.60% entertainment viewership share.

RIL Chairman Mukesh Ambani highlighted the company's strategic positioning, stating that Jio's digital ecosystem is deepening its roots in Indian households through mobility and broadband products, connecting mobile phones, homes, appliances and enterprises. He emphasized that customer engagement expanded meaningfully, driven by the synergistic value delivered by the company's media platforms.

Reliance Jio Platforms is considering an initial public offering that would float 2.5% of the company, a move that could make it India's largest-ever IPO worth more than $4 billion. The telecom giant, led by Mukesh Ambani and serving over 500 million users, represents the country's most highly anticipated public offering.

Valuation and Market Impact

Investment bank Jefferies estimated Reliance Jio's valuation at $180 billion in November. At this valuation, a 2.5% stake sale would raise $4.50 billion, significantly surpassing Hyundai Motor India's $3.30 billion IPO from last year. However, some bankers are pitching higher valuations for the business:

Over the past six years, Jio has diversified into artificial intelligence and attracted investments from prominent investors including KKR, General Atlantic, Silver Lake, and the Abu Dhabi Investment Authority.

Regulatory Framework and Structure

Reliance prefers to list only 2.5% of Jio's shares given the company's large size. This approach depends on approval from India's finance ministry for a proposal to reduce the minimum share sale requirement for large companies seeking IPOs from 5% to 2.5%. According to sources, "the preference is to list 2.5% at this point if the law gets changed as a smaller amount creates more pricing tension."

The company has not yet decided whether the IPO will be an offer-for-sale, allowing existing shareholders to sell their shares to the public, or if it will involve issuing new stock. Many foreign investors who invested in Reliance in recent years are expected to seek an exit via the IPO.

Timeline and Market Context

Ambani announced in August that Jio would list in the "first half of 2026." The listing timeline depends on market conditions and regulatory approvals. Although formal appointments have not been made, bankers from Morgan Stanley and India's Kotak are already working with Reliance on drafting the IPO papers.

The Jio listing would contribute to the strong momentum in India's IPO market, which ranked as the world's second-largest primary equity issuance market, raising $21.60 billion as of December 18, according to LSEG data.

Strategic Developments

Ambani first announced plans to list Jio within five years in 2019. The company delayed the offering beyond 2025 to achieve higher valuations by expanding into niche digital businesses. Jio has partnered with Nvidia to develop AI infrastructure and is preparing to compete with Elon Musk's Starlink internet service, which is expected to launch in India in the coming months.