Jio Platforms is set to issue 270 million fresh equity shares, raising its total paid-up equity to 9.21 billion shares. With an expected market capitalisation between ₹12-14 lakh crore, the company aims to raise up to ₹42,000 crore from the primary market, reflecting its significant valuation premium over global peers.
The anticipated price-earnings (P/E) multiple for Jio Platforms ranges between 40 and 46, with an enterprise value (EV) of 16-19 times its operating profit before depreciation and amortisation (Ebitda). In comparison, Bharti Airtel trades at a P/E of 43.6 and an EV/Ebitda of 10.8, while global telecom giants like T-Mobile, Verizon, and AT&T have P/E multiples between 10 and 17 and EV/Ebitda ratios between 7 and 11.
Jio Platforms' revenue from operations increased by 16% annually to ₹1.5 lakh crore between FY24 and FY26, with net profit growing by 18.4% to ₹30,049 crore. The company's Ebitda margin remained stable between 50-52% during this period. Meanwhile, Bharti Airtel saw a 19% annual revenue growth to ₹2.1 lakh crore, with net profit increasing fourfold to ₹33,823 crore and an improved operating margin rising to 57% in FY26 from 52% in FY24.
On the operational front, Jio Platforms boasted a larger customer base with 524.4 million customers by the end of FY26, compared to Bharti's 482.4 million. Jio also handled 241.4 billion gigabytes of data traffic, more than double Bharti's 101.3 billion GB. However, Bharti's average revenue per user (ARPU) at ₹257 surpassed Jio's ₹214.
Jio Platforms' net debt relative to Ebitda was 0.4 times, with a return on capital employed of 10.8%, compared to Bharti's 1.4 times and 19% respectively.
Background
Jio Platforms' strategic focus on a pureplay 4G and 5G network, along with proprietary digital platforms, distinguishes it from mature utility providers with legacy infrastructure. This differentiation is reflected in its valuation premium.
Looking ahead, Jio Platforms' market performance and its ability to maintain its valuation premium will be closely watched, particularly in light of its ambitious growth plans and competitive landscape.
