Jio Platforms’ trump card hides in plain sight even as AI and patents may be hazy
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Jio Platforms’ annualized FY27 earnings per share could reach ₹35, based on Q1FY27 results.
- ✓With mobile penetration in India now saturated, Jio might increase prices to boost revenue.
- ✓If mobile revenue grows by 10% through higher average revenue per user, the company’s valuation multiple could become attractive for many investors.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Livemint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Jio’s annualized FY27 EPS (earnings per share) could be about ₹35, based on the June quarter (Q1FY27) results, after factoring in a 3% rise in the number of equity shares post-issue, which means a price-to-earnings (P/E) multiple of 32 at ₹1,119. On FY28 estimates, the P/E could be lower if Jio decides to improve average revenue per user (Arpu) instead of focusing on garnering more customers.
Over the past four years to FY26, Jio added 92 million subscribers for a total of 497 million, almost twice the number added by Bharti Airtel even as the latter’s Arpu has grown faster. Jio has used pricing to capture most of the incremental users.
However, mobile penetration in India has saturated, with QoQ subscriber growth for Jio and Airtel moderating to about 1% in Q1. So, Jio can think of increasing prices. Jio’s mobile Arpu in FY26 was ₹203 versus Airtel’s ₹254. Even if Jio decides to tweak some plans, especially the entry-level unlimited data plan, to boost Arpu by about 10%, it will still stay cheaper than Airtel for users.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
Livemint
Read the full, original unfiltered story directly on the publisher's portal.