Telecom sector braces for impact of Jio Platforms’ 2026 mega IPO

One of the most eagerly anticipated new issues currently on the public’s radar is the Jio Platforms IPO from Reliance Industries. The offering is expected to be launched in the first half of 2026. Since the listing of Reliance Petroleum in 2006, the Mukesh Ambani-led Reliance Industries Group has seen some of the largest initial public offerings in the country.

Jio, India’s largest telecom operator, is set to play a major role in the sector’s expansion through its Initial Public Offer. As the company prepares to go public in 2026, it has continued to grow its subscriber base while periodically revising its tariffs. With the IPO approaching, the operator is widely expected to increase prices further or participate in the broader tariff restructuring planned for the sector. This shift is likely to benefit not only Jio but also its competitors and, ultimately, the telecom industry as a whole.

According to a telecom sector report by JM Financial, the forthcoming Jio Platforms IPO, slated for the first half of 2026, has strengthened expectations of a firmer tariff environment and sustained growth in average revenue per user (ARPU) across the industry.

Reports suggest that the IPO could value the telecom giant at up to USD 170 billion. For comparison, Jio’s listed rival, Bharti Airtel, is valued at around USD 140 billion. Jio Platforms owns 100% of Reliance Jio Infocomm, while Reliance Industries holds a 66.5% stake in Jio Platforms.

Industry consolidation, the government’s preference for a 3+1 player market structure, and Jio’s need to justify its substantial 5G capital expenditure ahead of the listing all underpin JM Financial’s forecast of approximately 12% compound annual ARPU growth between FY25 and FY28. This ARPU trajectory is expected to support telecom operators’ EBITDA growth of 14–18% over the same period.

Jio's business growth

In the second quarter of FY26 (Q2 FY26), Jio Platforms Limited (JPL), the parent company of Reliance Jio, reported a net profit of Rs 7,379 crore, an increase of 12.8% compared with the same period last year. The rise was driven by higher ARPU and increased market share in both mobility and home services.

Revenue for Q2 FY26 stood at Rs 42,652 crore, up 14.9% year-on-year. Sequentially, revenue grew 3.9% from Rs 41,054 crore in the previous quarter, while profit rose 3.8% from Rs 7,110 crore recorded in Q1 FY26. During the quarter, Jio’s subscriber base surpassed 500 million, reaching more than 506 million users.

Despite offering a superior network, Jio’s tariffs remain 5–10% lower than Bharti Airtel’s, though they are expected to converge upwards over time. Robust subscriber growth continues to be supported by Jio’s aggressive customer acquisition strategy.