ICICI Securities Values Jio Platforms at $148 Billion, Eyes 2026 IPO

ICICI Securities has projected a substantial valuation for Jio Platforms, estimating the company's equity value at $148 billion by September 2027. This valuation comes ahead of Jio Platforms' planned Initial Public Offering (IPO) in the first half of 2026, which is expected to be India's largest public offering to date.

Valuation Breakdown

ICICI Securities' valuation is based on several key factors:

Metric	Value
Valuation Multiple	16x adjusted EBITDA
EBITDA Growth Rate (FY25-28)	18.10%
PAT Growth Rate (FY25-28)	21.10%
Non-connectivity Business Net Profit CAGR (FY25-28)	46.70%

The brokerage has upgraded telecom sector valuations, citing improved tariff structures and 5G adoption trends.

Previous Funding Round

Jio Platforms has already demonstrated its ability to attract significant investment:

Metric	Value
Total Funds Raised	Rs 1,52,056 crore
Number of Investors	13
Stake Sold	32.90%
Implied Valuation	$65-70 billion

Growth Drivers

ICICI Securities expects Jio Platforms' non-connectivity business to be a major growth driver. This segment is projected to grow at a 46.70% net profit CAGR over FY25-28, driven by:

Content
Digital enterprise solutions
AI deployment through Reliance Intelligence

Market Impact

The upcoming Jio Platforms IPO is poised to make a significant impact on the Indian stock market. As the telecom and digital services giant prepares for its public debut, investors and market watchers will be keenly observing its financial performance and growth trajectory in the lead-up to 2026.

The projected valuation of $148 billion represents a substantial increase from the previous funding round's implied valuation, reflecting the company's expected growth and the overall positive outlook for the telecom and digital services sector in India.

As Jio Platforms continues to expand its services and leverage emerging technologies like 5G and AI, its IPO is likely to be a landmark event in the Indian corporate landscape, potentially setting new benchmarks for valuations in the tech and telecom sectors.

Jio Platforms, a subsidiary of Reliance Industries, has reported impressive growth in its latest quarterly results, showcasing strong performance across key metrics. The company's financial results for the quarter ended September reveal significant strides in profitability, revenue, and subscriber base.

Financial Performance

Jio Platforms demonstrated robust financial growth in the September quarter:

Metric	Q2 FY24	Q1 FY24	QoQ Change
Profit	₹7,379 crore	₹7,095 crore*	4% ↑
Revenue	₹36,332 crore	₹35,032 crore	4% ↑
EBITDA	₹18,880 crore	₹18,330 crore*	3% ↑

*Calculated based on the given percentage increase

The company's profit saw a 4% sequential increase, reaching ₹7,379 crore. This growth was matched by a 4% rise in revenue, which climbed to ₹36,332 crore from ₹35,032 crore in the previous quarter. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also showed positive momentum, rising by 3% quarter-on-quarter to ₹18,880 crore.

Subscriber Growth and User Metrics

Jio Platforms exceeded market expectations in terms of subscriber additions:

Metric	Value
New Subscribers Added	8.3 million
Total Subscribers	Over 506 million
Average Revenue Per User (ARPU)	₹211.40

The company added 8.3 million new users, surpassing the anticipated 5 million, bringing its total subscriber base to over 506 million. The Average Revenue Per User (ARPU) stood at ₹211.40, indicating strong monetization of its subscriber base.

Data Traffic and 5G Adoption

Jio's data traffic witnessed substantial growth:

Metric	Value	YoY Change
Total Data Traffic	Over 58 Exabytes	29.8% ↑
5G Data Usage	> 50% of wireless data	-

The company reported a significant 29.8% year-on-year increase in data traffic, exceeding 58 Exabytes. Notably, 5G technology now accounts for more than 50% of Jio's wireless data usage, highlighting the rapid adoption of next-generation network technology among its users.

Strategic Vision

Chairman Akash M Ambani emphasized the company's milestone of serving over 500 million subscribers. He also outlined plans to expand Jio's homegrown technology globally, signaling the company's ambitions for international growth and technological leadership.

Parent Company Performance

While Jio Platforms showed strong results, its parent company, Reliance Industries, faced some challenges:

Metric	Value	QoQ Change	Bloomberg Estimate
Consolidated Net Profit	₹18,165 crore	33% ↓	₹19,883 crore

Reliance Industries reported a 33% sequential decline in consolidated net profit to ₹18,165 crore, falling short of Bloomberg estimates of ₹19,883 crore. This decline was attributed to high-base effects from gains in the previous quarter.

In conclusion, Jio Platforms' latest quarterly results demonstrate the company's continued growth trajectory, particularly in subscriber acquisition and data consumption. The strong performance in key financial metrics and the rapid adoption of 5G technology position the company well for future expansion, both domestically and potentially on the global stage.