Reliance Jio IPO in focus ahead of AGM: What YES Securities said on valuations, growth & more

Mukesh Ambani led Reliance Industries Ltd (RIL) is likely to file the draft papers to launch the initial public offering of its digital arm Reliance Jio Platforms. However, the IPO is reportedly delayed due to valuations and issue mix concerns amid the geopolitical concerns exacerbated by the US-Iran war.

The company is shifting from aggressive subscriber acquisition to monetisation, profitability and ecosystem-led growth, said YES Securities in its recent report. According to the brokerage, this comes after Jio consolidated its leadership in India’s telecom market and built a wider digital business beyond connectivity.

In YES Securities’ sum-of-the-parts (SOTP) framework, Jio Platforms is valued at about Rs 6.1 lakh crore in enterprise value, contributing roughly Rs 450 per Reliance share. It said investors should watch ARPU growth, AirFiber expansion, enterprise and cloud monetisation, 5G monetisation, subscriber additions and churn, AI-led services, and margin and cash-flow trends ahead of any IPO.

The brokerage said Jio remains one of Reliance’s most valuable businesses after retail and continues to benefit from high margins, low per-user operating costs and strong cash generation. A separate listing, it said, could give investors direct access to the country’s largest telecom and digital platform business.

Reliance Industries is set to host its 49th annual general meeting (AGM) on June 19, Friday. Market experts believe that the AGM shall be a crucial one for investors as Mukesh Ambani, the chairman and Managing Director of oil, telecom and retail major is expected to provide an update on the proposed IPO of Jio Platforms. The meeting will begin from 2 pm onwards.

YES Securities said Jio added around 42 million net subscribers in FY26, taking its base to 524.4 million. Revenue from the digital services business rose 14.3 per cent year-on-year to about Rs 1.76 lakh crore, while EBITDA increased to Rs 76,560 crore. The report said Reliance management is actively preparing Jio for an IPO or separate listing, with the focus now on monetisation at scale.

YES Securities said subscriber additions remain healthy, but the bigger issue for investors is Jio’s ability to earn more from its customer base. ARPU rose to about Rs 214 a month in Q4FY26, helped by tariff hikes, a richer 5G user mix and rising postpaid adoption. Jio is also bundling mobile services with broadband, entertainment and digital offerings to improve stickiness and lift revenue per user.

The brokerage identified tariff hikes, deeper 5G adoption, AirFiber expansion, enterprise connectivity and AI-led services as the key drivers of Jio’s next phase of earnings growth. One of the main monetisation levers, it said, is Jio AirFiber. Jio’s fixed wireless business has grown to around 13 million subscribers, making it the world’s largest fixed wireless provider outside China, according to YES Securities, while fixed broadband connections have crossed 27 million.

According to YES Securities, AirFiber’s expansion into smaller towns and underpenetrated markets is creating a new revenue stream beyond traditional mobile services and increasing household-level digital consumption. The report said broadband and fixed wireless access are set to become more important contributors to ARPU growth and profitability.

YES Securities said Jio has built a digital ecosystem spanning entertainment, commerce, cloud services and enterprise connectivity. Its content platforms, including JioCinema and JioHotstar, reached around 451 million monthly active users during FY26, while JioMart continued to strengthen its digital commerce presence.

The report also pointed to JioCloud, network services, data centres and partnerships with Google and Microsoft as part of Reliance’s push into cloud, AI and digital infrastructure services.

YES Securities said a standalone listing could also offer greater transparency on Jio’s profitability, growth trajectory and capital allocation, while allowing investors to value segments such as AirFiber, cloud services, enterprise connectivity and digital platforms separately.