Analysis ahead of Reliance Jio IPO: Bharti Airtel is better or Mukesh Ambani shares? Top value things before bid opens
Jio IPO: Reliance Jio Platforms’ much-awaited initial public offering (IPO) will open for subscription on October 21, putting the digital services business led by Mukesh Ambani in focus ahead of its stock market debut. With an issue size of ₹30,213 crore, the offering gives investors an opportunity to participate in India’s digital connectivity and technology growth story.
However, investors must weigh Jio’s growth prospects and valuation against established listed telecom players such as Bharti Airtel. While Jio offers exposure to a large subscriber base, expanding 5G services and emerging digital businesses, its average revenue per user (ARPU) and return ratios remain important factors to monitor.
Motilal Oswal’s comparison suggests that Jio’s valuation is relatively attractive against Bharti Airtel’s on a price-to-earnings basis. At the upper end of the IPO price band, Jio is valued at around 34 times its FY26 earnings on a post-issue basis, compared with Bharti Airtel’s trailing price-to-earnings multiple of around 40 times.
The brokerage highlighted Jio’s scale and profitability in its assessment of the company’s prospects.
“Unmatched digital connectivity scale. India’s largest digital connectivity platform with 533mn subscribers and ~60% of the country’s wireless data traffic. Its extensive 5G network and 14mn JioAirFiber customers provide a strong foundation for future growth,” Motilal Oswal said.
Jio reported FY26 revenue of ₹1,46,885.3 crore, compared with Bharti Airtel’s ₹2,10,972.8 crore. However, Airtel recorded a higher return on average net worth of 20.3%, against Jio’s 9.4%, indicating a difference in capital returns despite Jio’s comparatively lower valuation multiple.
Jio’s net leverage of 0.36 times is another positive, according to the brokerage. However, investors should consider that Jio’s ARPU remains below Airtel’s, leaving scope for improvement through tariff increases, subscriber upgrades and greater consumption of digital services.
Jio’s investment proposition rests on its subscriber scale, growing profitability and opportunities beyond conventional mobile connectivity. The company has expanded its presence across 5G, home broadband, enterprise technology, cloud services and artificial intelligence-related offerings.
Its revenue and profit grew at compound annual growth rates of approximately 16% and 18%, respectively, between FY24 and FY26, reaching ₹1.47 lakh crore and ₹30,049 crore.
Motilal Oswal pointed to this growth and the company’s operating performance in its report.
“Consistent growth and profitability. Revenue/PAT grew at ~16%/~18% CAGR over FY24-26 to ₹1.47 lakh cr/ ₹30,049cr. EBITDA margin improved to ~51.9%, while June 2026 quarter revenue and EBITDA grew ~11.8% and ~15% YoY, respectively,” the brokerage noted.
It added that Jio’s EBITDA margin stood at approximately 51.9% in FY26 and increased to 53.26% in the first quarter of FY27. In the June 2026 quarter, the company reported revenue of ₹39,172.9 crore, EBITDA of ₹20,864.5 crore and net profit of ₹7,764.1 crore.
ARPU also increased from ₹181.7 in FY24 to ₹214 in FY26 and ₹215.6 in the June 2026 quarter. Monthly data consumption reached 43.7 GB, while churn stood at 1.61%, it stated.
The brokerage further highlighted the valuation and balance-sheet considerations supporting its recommendation.
“Reasonable relative valuation. At ₹1,119, Jio is valued at ~34x post-issue FY26 earnings, below Bharti Airtel’s ~40x trailing P/E. Net leverage is low at 0.36x, and fresh issue proceeds will primarily support repayment of borrowings at RJIL,” Motilal Oswal said.
The IPO comprises a fresh issue of 27 crore shares, with no offer for sale (OFS). The issue is expected to raise ₹30,213 crore, with an implied market capitalisation of approximately ₹9.81 lakh crore to ₹10.30 lakh crore across the price band.
A significant portion of the proceeds — up to ₹27,500 crore — will be used to repay or prepay borrowings of Reliance Jio Infocomm. The remaining proceeds will be allocated towards general corporate purposes.
Issue size: ₹30,213 crore
Price band: ₹1,065– ₹1,119 per share
Issue opens: October 21, 2026
Issue closes: October 23, 2026
Expected listing: October 28, 2026
Issue type: Fresh issue of 27 crore shares; no OFS
Use of proceeds: Primarily repayment or prepayment of Reliance Jio Infocomm borrowings
Brokerage view: Motilal Oswal Wealth Management recommends subscribing for listing gains and the long term
“We recommend investors to SUBSCRIBE for both listing gains and long term. Jio offers a combination of market leadership, healthy earnings growth and future opportunities in broadband, enterprise technology and AI. For long-term investors, the key monitorables will be ARPU growth, tariff hikes and the monetisation of digital services,” said the brokerage.
GMP: Jio Platforms IPO last recorded Grey Market Premium (GMP) is ₹247, as on Oct 20, 2026. With an upper price band of ₹1119.00, the estimated listing price for Jio Platforms IPO is ₹1366 (cap price + today's GMP). This indicates an expected listing gain for Jio Platforms IPO of 22.07%.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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