Jio Platforms set for steady Q2 growth; tariff hikes remain in focus
Jio Platforms Ltd is set to announce its July-September quarter earnings on Friday, just two days after its stellar public-market debut. The company is expected to report stable earnings for the quarter on the back of continued subscriber additions, traction in the home broadband segment, and growth in digital services, according to analysts.
The performance will test the growth potential of Jio’s average revenue per user (Arpu), which is expected to remain limited as the company has refrained from raising tariffs, unlike rival Bharti Airtel, which recently discontinued its entry-level ₹299 plan and increased postpaid tariffs.
“While Bharti withdrew its low-value plans, there was no follow up by other players and we are still awaiting tariff increase by the sector,” analysts at Emkay wrote in a note dated 6 October.
In the July-September quarter, Jio is expected to post nearly 2% quarter-on-quarter Arpu growth to ₹219.5, according to average estimates from four brokerage firms. Analysts expect the ₹300 Jio Prime membership fee introduced in August, which protects users from tariff hikes until 5 September 2027, to provide additional revenue support in the interim.
“With recent postpaid tariff hikes by Bharti, JPL’s (Jio Platforms’) listing, and Vi (Vodafone Idea) being close to securing a debt raise, we believe smartphone tariff hikes are imminent. We model a 15% smartphone tariff hike in March 2027,” analysts at Motilal Oswal said in a note dated 28 October.
When the company reports its earnings, investors will be watching closely for guidance on the next headline tariff hike. Operators have so far relied on 2G-to-4G and 4G-to-5G upgrades, higher postpaid additions, and rising data usage to sustain growth without major pricing action. However, rising smartphone prices could temper handset upgrades and weaken this premiumisation trend.
Analysts, however, expect the ₹300 Jio Prime membership fee introduced in August, which protects users from tariff hikes until 5 September 2027, to help lift the company’s revenue.
“We estimate Jio Platforms’ revenue rose 3% quarter-on-quarter and 11% year-on-year to ₹40,400 crore in Q2FY27, driven by robust net additions of eight million subscribers in the quarter, with the total subscriber base likely rising to 541.3 million from 533.3 million as of the end of Q1FY27,” analysts at brokerage house Nomura wrote in a note dated 3 October.
Jio Platforms, the digital services arm of Reliance Industries Ltd (RIL), houses the conglomerate’s telecom, digital applications and technology businesses, including Reliance Jio Infocomm, India’s largest telecom service provider. The company made its debut on the stock exchanges on Wednesday, listing at ₹1,358 per share, 21.4% above the issue of ₹1,119. The shares extended their gains and closed at ₹1,417.50 on the NSE on the first day of trading.
Telecom accounts for about 88% of the company’s revenue, but analysts expect digital services, including cloud, enterprise communications, internet of things, and managed services to become an important growth driver for Jio going forward.
Q1 performance
In the April-June quarter (Q1FY27), Jio reported 9.2% year-on-year growth in net profit to ₹7,764 crore. However, profit fell 2.15% sequentially due to higher finance costs and depreciation expenses during the quarter as 5G network assets became operational.
Revenue from operations rose 2.4% quarter-on-quarter and 12% year-on-year to ₹39,173 crore. Jio said the revenue growth was driven by continued subscriber addition, organic Arpu growth, and growth in digital services.
At 11:20 am IST on Thursday, shares of Jio Platforms were up 1.3% at ₹1,435.60 on the NSE.