Jio Platforms reports 25.7% profit surge in Q4 FY25, ARPU climbs to Rs 206.2

Jio Platforms Ltd (JPL), India's largest mobile network operator under Reliance Jio, reported a robust 25.7% increase in net profit for Q4FY25, amounting to Rs 7,022 crore. This growth is attributed to a telecom tariff hike implemented in July 2024. On a quarterly basis, net profit rose by 2.34%, maintaining a positive trajectory with previous quarters showing 26%, 23.4%, 11.7%, and 12% growth, respectively. Average revenue per user (ARPU) surged to Rs 206.2 from Rs 203.3 in the previous quarter, displaying a year-on-year increase of 13.4% despite the quarter's shorter duration.

The company’s operational revenue rose 17.7% year-on-year to Rs 33,986 crore for the quarter. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached a record Rs 17,016 crore, marking an 18.5% rise from the previous year. Jio Platforms’ subscriber base expanded by 6.1 million, reaching 488.2 million users at the end of Q4, a significant improvement from the 3.3 million additions in Q3. Notably, the company had previously lost 10.9 million subscribers in Q2 due to the tariff hike.

Jio said that 191 million subscribers have migrated to Jio’s 5G network, and account for 45 per cent of Jio’s wireless data traffic, up from 40 per cent, 34 per cent, 31 per cent, and 28 per cent in the preceding quarters. Jio’s 5G users now represent the largest 5G subscriber base for any telecom operator outside China. This essentially means 45 per cent of data is being provided to users for free by the telco considering Jio does not charge extra from 5G subscribers, and this increasing gap has to be addressed in the future.
 
Overall, Jio Platforms had 488.2 million users at the end of Q4, up from 482.1 million at the end of Q3. It gained 6.1 million subscribers in the latest quarter, up sharply  from the 3.3 million additions in Q3. The telco had lost 10.9 million subscribers in Q2 following the tariff hike. Before that, the telco had added users for seven straight quarters. 

Engagement on the network remained strong, with total data and voice traffic increasing by 19.6 per cent and 3.5 per cent annually, respectively.  Per capita data consumption by Jio users rose to 33.6 gigabytes (GB) per month, or more than 1 GB per day.

JPL's engagement metrics remained strong, with network data traffic increasing by 19.6% and voice traffic by 3.5% year-on-year. Per capita data consumption for Jio users rose to 33.6 gigabytes monthly, reflecting higher user engagement across its services. Jio's leadership highlighted that 191 million subscribers have transitioned to Jio's 5G network, which now accounts for 45% of its wireless data traffic, up from 40% in the previous quarter. This makes Jio the largest 5G subscriber base outside of China. 

“Jio is working on enabling large scale AI (artificial intelligence) infrastructure and services that will add an intelligence layer to all Jio services,” said Akash M Ambani, chairman, Reliance Jio Infocomm.

In a significant development, Jio Platforms announced an agreement with SpaceX to offer Starlink’s broadband internet services in India. This partnership aims to enhance Jio's service offerings by integrating Starlink equipment in retail outlets, complete with customer service infrastructure for installation and activation. This move aligns with Jio's strategy to bolster its digital service portfolio amid growing competition. 

The Indian telecom sector remains competitive, with Jio facing challenges from key rivals like Bharti Airtel and Vodafone Idea. Bharti Airtel, which holds a significant market share, continues to invest heavily in expanding its 5G infrastructure. Meanwhile, Vodafone Idea is struggling with financial constraints but maintains a strong customer base. Jio's ability to significantly grow its subscriber base and revenue, while expanding into new services, underscores its strong market position.