Jio IPO: ₹27,500 crore debt repayment, rising ARPU and 5G growth in focus

Jio Platforms’ proposed ₹30,000 crore initial public offering (IPO) is expected to support debt reduction at its telecom subsidiary, while rising average revenue per user (ARPU), expanding 5G adoption and broadband growth provide potential drivers of future earnings.

According to a Centrum Broking report dated October 14, the IPO comprises a fresh issue of 270 million equity shares. Of the proceeds, approximately ₹27,500 crore is earmarked for debt repayment or prepayment, with the balance intended for general corporate purposes.

The brokerage said the repayment could help moderate finance costs and improve the conversion of operating earnings into net profit. However, depreciation and deferred spectrum payment liabilities will continue to influence profitability.

Reliance Jio filed its draft red herring prospectus (DRHP) on October 14, with the IPO scheduled for October 21–23 at a price band of ₹1,065–₹1,119 per share. The issue could raise nearly ₹30,000 crore, valuing the company at around ₹10.3 lakh crore ($108 billion); as of March 31, 2026, Jio had 268.5 million 5G customers and 27.1 million JioFiber and JioAirFiber subscribers.

ARPU growth remains key

Jio’s average revenue per user increased to ₹215.6 per month in Q1FY27, from ₹208.8 in Q1FY26. The improvement reflects premiumisation and a shift towards higher-value services.

Centrum expects further ARPU growth to come from tariff increases, an improved subscriber mix and premium offerings. The brokerage also expects a tariff hike of around 12% over the next three to four months.

Rising data consumption could support this trend. Monthly consumption per user increased to 43.7 GB in Q1FY27, from 37 GB a year earlier, indicating greater use of mobile data services.

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5G and broadband expand growth opportunities

Jio’s 5G customer base reached 285 million in Q1FY27, up from 210 million in Q1FY26. Its fixed broadband subscriber base also expanded to 28.6 million from 20 million over the same period, including 14 million JioAirFiber customers.

The brokerage said the growing contribution of 5G and fixed broadband allows Jio to monetise its network investments beyond traditional mobile connectivity.

Profitability and outlook

Jio reported revenue of ₹34,212 crore in Q1FY27, up 10.8% year-on-year, while EBITDA rose 12.1% to ₹18,709 crore. Its EBITDA margin improved to 54.7%, compared with 54% in Q1FY26.

Centrum expects revenue, EBITDA and profit after tax to grow at compound annual growth rates of 14%, 16% and 16%, respectively, between FY26 and FY29.

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The brokerage said Jio’s outlook is supported by rising data consumption, increasing 5G penetration and fixed broadband expansion.

The key challenge will be sustaining customer growth while increasing revenue per user and converting operating gains into stronger net profitability. Debt repayment through the IPO could help, but future performance will also depend on pricing, service adoption and the costs of maintaining and expanding its network.