Jio Platforms gets first Buy call! Nomura says ‘disruptor now the leader’; starts coverage with Rs 1,340 target

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The global brokerage says Jio Platforms is a scale leader entering the monetisation cycle. “Jio, once the disruptor, is now the leader. It has ~42% of the country’s wireless subscribers, ~60% of data traffic and 43% of home broadband. In our view, the listing will likely push Jio Platforms (JPL IN), the price setter, towards steady tariff hikes that peers can follow,” Nomura said in a report on Wednesday.

Long-term value creation

Jio Platforms, India's largest telecom operator, held a 41.7% share of wireless subscribers, excluding M2M, in August 2026, according to TRAI. With the widest 5G coverage, data usage per subscriber 27% higher than Airtel's and the lowest monthly churn rate among peers at 1.6%, Jio is well positioned to narrow its ARPU gap with Airtel, analysts say. A 15% industry-wide tariff hike in November-December 2026 could provide an immediate boost to ARPU.

Home broadband: Second growth engine: Home broadband is emerging as Jio's second growth driver, with its subscriber base reaching 28.6 million in June 2026, compared with Airtel's 14.7 million, supported by an aggressive rollout of FWA and UBR services. With broadband penetration in India at just 21%, against a global average of over 70%, the market offers a potential base of more than 300 million households and a decade-long growth opportunity.

Nomura believes Jio's FWA model is more capital-efficient because it leases customer premises equipment from third parties, unlike fibre to the home (FTTH), where around 25% of homes passed do not convert into subscribers, leaving the fibre investment unrecovered.

Debt-free by FY29: With most of its 5G investment cycle behind it, Jio's capital expenditure (capex) is expected to decline, falling to around 23% of revenue in FY26 from 35% in FY25, freeing up significant cash flow and driving a sharp improvement in free cash flow (FCF). Nomura says Jio Platforms' balance sheet is also strengthening, with net debt-to-equity, including deferred payment obligations, declining from 0.56 times in FY24 to 0.37 times in FY26. Nomura expects Jio to become debt-free on a net basis by FY29.

Tech licensing offers long term growth - Jio's proprietary end-to-end 5G technology stack, spanning the core network, devices and Operations Support Systems/Business Support Systems (OSS/BSS), has made India the fifth country globally with indigenous 5G capabilities, Nomura said. Its proprietary Unlicensed Band Radio (UBR) technology also creates opportunities to license the technology to telecom operators worldwide. Jio is initially targeting up to 12 strategic partnerships, with access to 1.5 billion potential users across the US, Germany, South America, East Asia and Africa.

Jio Platforms IPO

Jio Platforms' Rs 30,213 crore IPO surpassed Hyundai Motor India's Rs 27,870 crore offering to become the largest public issue in India's capital market history. The issue was fully subscribed within 100 minutes of opening, reflecting strong early participation from institutional and retail investors.

The public book attracted bids worth more than Rs 4.9 lakh crore, while the anchor allocation drew substantial interest from leading domestic and international investors. The IPO attracted more than 1.38 crore applications, according to Investoyard data, setting a new reported record for investor applications.

Jio raised Rs 8,110 crore through its anchor allocation ahead of the public issue, with institutional investors including BlackRock, Fidelity and Life Insurance Corporation of India participating. At the upper end of its price band of Rs 1,065-1,119, Jio Platforms is valued at Rs 10.3 lakh crore, placing it among India's most valuable companies.

The offering comprised 27 crore fresh equity shares, with no offer-for-sale component. Existing shareholders, including Reliance Industries and strategic investors, did not sell shares through the IPO.