Jio Platforms Q2 results: Profit rises 14%; company eyes 340 million mobile broadband users

Mumbai: Jio Platforms Ltd reported a 13.7% year-on-year rise in September-quarter profit, supported by subscriber additions and growth in its broadband and digital services businesses, as the newly listed company looks to tap a larger opportunity in mobile broadband and expand beyond connectivity.

The company sees an opportunity to add 340 million mobile broadband (4G/5G) users in India over the next five years, including 240 million existing 2G users and 100 million new users, Jio Platforms chief executive Pankaj Pawar said during a post-results call with analysts. Jio also plans to expand its home broadband business, grow its enterprise offerings and build more digital services on top of its connectivity platform.

The September-quarter results are the company's first since its shares debuted on the stock exchanges on 28 October, delivering listing gains of 21.4% over the issue price of ₹1,119. The company is now India's second-most valuable company after its parent Reliance Industries Ltd.

Jio Platforms, which houses Reliance Industries' telecom and digital services businesses, reported a 13.7% year-on-year and 8% sequential increase in net profit to ₹8,389 crore. The company said profit growth was partly offset by higher finance costs following the capitalization of 5G assets in March, as network assets became operational.

Revenue from operations rose 11.4% year-on-year and 3.3% sequentially to ₹40,475 crore. Jio said it delivered double-digit revenue growth across its connectivity and digital services businesses.

“This quarter’s results continue to reflect the strength of our 5G network, and the growing reach of our broadband and digital services," Akash M. Ambani, managing director of Jio Platforms, said in a statement. “We would continue to build our capabilities across satellite communications, 6G intellectual property and AI embedded in our core voice and data services as we create lasting value for all our stakeholders.”

In the April-June quarter, revenue from operations had risen 2.4% sequentially and 12% year-on-year to ₹39,173 crore. Net profit stood at ₹7,765 crore, up 9.2% from a year earlier but down 2.15% sequentially.

Jio announced its results after market hours on Friday. Its shares closed 1.1% higher at ₹1,437.50 on the National Stock Exchange.

Earnings before interest, tax, depreciation and amortization (Ebitda) rose 16.6% year-on-year to ₹21,879 crore in the September quarter, aided by revenue growth, operating leverage and margin expansion. Ebitda margin expanded 250 basis points from a year earlier to 54.1%.

Jio's average revenue per user (Arpu), a key measure of telecom operators' earnings from subscribers, rose 1.5% sequentially and 3.5% year-on-year to ₹218.8 a month in the September quarter, from ₹215.6 in the preceding quarter.

Promotional 5G offers continue to constrain Arpu growth, while a better subscriber mix and increased usage are contributing positively, the company said.

Tariff increases are generally seen as a key lever for telecom operators to lift Arpu. Jio continues to lag Bharti Airtel in the metric. Airtel's Arpu stood at ₹264 in the June quarter. The company is yet to announce its September-quarter results.

In the absence of tariff hikes, Jio's sequential Arpu growth has remained largely flat over the past few quarters.

Jio's financial performance assumes significance as it begins reporting as a listed company and commands a market capitalization of about ₹13 trillion. Globally, it is also approaching the fifth position among major telecom operators by market capitalization, despite annual revenue of ₹1.47 trillion being lower than that of global peers.

The company's return on average capital employed stood at 11% at the end of September, compared with 12.5% a year earlier, according to its earnings release.

According to analysts, Jio’s rapid expansion in wireless and home broadband has supported its valuation. Alongside this, its focus on building a technology company, with a digital services vertical backed by an integrated technology stack, offers long-term earnings visibility.

Beyond connectivity, Jio is looking to monetize its customer base through a digital gateway strategy. This involves offering services such as cloud computing, cloud gaming, video analytics and artificial intelligence-enabled features on top of basic connectivity.

The company aims to move beyond simply bundling third-party apps and instead drive customer awareness, adoption and usage of digital services, eventually converting them into additional revenue streams.

Jio also sees an opportunity to offer integrated connectivity, cloud, computing and security solutions to India's estimated 80 million small merchants, many of which lack dedicated technology teams, Pawar said.

International expansion is another focus area, although the company intends to take a selective, asset-light approach rather than make large investments in overseas telecom infrastructure.

“We will be very, very selective about the international markets that we will go to,” Ambani told analysts, adding that Jio would operate as a managed services partner, leveraging its proprietary technology stack instead of making capital-intensive investments in towers and fibre infrastructure.

Jio's telecom business, operated through Reliance Jio Infocomm Ltd, accounts for about 88% of Jio Platforms' revenue.

Reliance Jio added 9.1 million subscribers in the September quarter, taking its total subscriber base to 542.4 million. It had added 8.9 million subscribers in the preceding quarter.

Its 5G subscriber base reached 300 million at the end of September, an increase of 66 million over the past 12 months, making it the world's largest 5G operator outside China, the company said.

Jio's fixed broadband subscriber base stood at 30 million, with 7.3 million additions over the past 12 months. Jio AirFiber, with a subscriber base of 15.1 million, accounted for more than 75% of the company's fixed broadband additions during the period, it said.

Pawar said Jio sees the potential to expand its home broadband footprint to 150 million households by FY31.

"We believe this is the great opportunity for Jio to keep continuing particularly when we don't need any incremental spectrum and when we don't need any incremental capex to be deployed to take our balanced 4G base into 5G," Pawar said.

Jatin is based in New Delhi and writes on telecom and technology with a keen interest in policy and regulation. With over five years of reporting experience across Informist Media, Financial Express and now Mint, he has extensively covered the telecom, information technology, electronics and semiconductor sectors.<br><br>A commerce graduate, Jatin's work focuses on tracking industry developments, regulatory changes and policy decisions that shape India’s evolving digital ecosystem. Over the years, he has reported on key trends and shifts across these sectors, bringing clarity to complex policy and business issues.<br><br>Known for his strong news sense, Jatin focuses on breaking stories and delivering in-depth reporting that offers readers an understanding of complex topics, policy decisions and corporate developments. His work often examines the intersection of policy and business, highlighting how regulatory decisions impact industry strategy, pricing, and consumer outcomes.<br><br>He brings a strong domain understanding for Mint and his work is widely picked up by other media firms. With a focus on accuracy and depth, he aims to break down developments into clear, accessible insights for readers, while continuing to track emerging trends shaping the future of India’s telecom and technology sectors.

Get Latest real-time updates

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

HomeCompaniesCompany ResultsJio Platforms Q2 results: Profit rises 14%; company eyes 340 million mobile broadband users

✕

Wait for it…

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.