Jio Platforms shares climb over 3% after Q2 PAT rises 14% YoY to Rs
Benchmarks Nifty23,264.15211.06FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return9.02 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.55 % Invest NowEnter search…
Jio Platforms reported a 14% year-on-year rise in September-quarter net profit in its first earnings announcement since listing. Subscriber additions, 5G adoption and digital services supported growth, while brokerages retained Buy ratings with target prices of Rs 1,340 and Rs 1,350.
Shares of newly listed Jio Platforms rallied as much as 3.1% to their day’s high of Rs 1,476 on the BSE on Monday after reporting a 14% year-on-year (YoY) increase in consolidated net profit to Rs 8,389 crore in its September quarter results, marking its first earnings announcement since its stock market debut earlier in the week. The growth was supported by healthy subscriber additions, expansion in its digital services business and a marginal rise in average revenue per user (ARPU).Revenue from operations climbed 11% YoY to Rs 40,475 crore from Rs 36,332 crore in the corresponding quarter last year. On a sequential basis, net profit rose 8% from Rs 7,765 crore reported in the June quarter, while revenue grew 3%.
EBITDA rose 17% YoY during the quarter, supported by revenue growth, operating leverage and margin improvement. The EBITDA margin expanded 250 basis points to 54.1%. ARPU also edged higher to Rs 218.8 in the second quarter, as promotional offers for fixed broadband customers offset the benefits from a better subscriber mix and higher usage.
The results come after Jio Platforms' stock market debut on October 28. Its shares listed at Rs 1,358, representing a 21.36% premium over the issue price of Rs 1,119.
On the operational front, per capita data consumption stood at 44.2 GB per month, while total data traffic increased 22% YoY in the September quarter. Monthly subscriber churn remained stable at 1.6%, and the company added 9.1 million net subscribers during the quarter.
Live Events
As of the end of September, Jio's 5G subscriber base stood at 300 million, an addition of 66 million users over the past 12 months. Customer engagement remained strong, with 5G accounting for 56% of total wireless traffic.
The company's fixed broadband subscriber base reached 30 million, following additions of 7.3 million customers over the last 12 months. Jio AirFiber had a total subscriber base of 15.1 million and accounted for more than 75% of Jio's fixed broadband additions during the same period.
"We warmly welcome our new shareholders to the Jio Platforms family as we enter a new era as a listed company. This quarter’s results continue to reflect the strength of our 5G network, and the growing reach of our broadband and digital services," said Akash M Ambani, MD of Jio Platforms.
He said Jio's early investments in next-generation technologies had helped establish the foundation for its success over the past decade. The company will continue to strengthen its capabilities in satellite communications, 6G intellectual property and artificial intelligence embedded in core voice and data services, he added.
Buy, sell or hold Jio Platforms share?
Japanese brokerage Nomura was the first to initiate coverage on Jio Platforms following its stock market listing, assigning a Buy rating with a target price of Rs 1,340 from the IPO price. The stock has already crossed this target. Nomura said Jio's extensive 5G coverage has helped drive data consumption per subscriber to 27% above Bharti Airtel's levels.It also highlighted Jio's industry-low monthly churn rate of 1.6%, which positions the company to narrow its average revenue per user (ARPU) gap with Airtel. The brokerage summed up its assessment by saying that "the disruptor is now the leader of the industry".
Nomura expects Jio Platforms to become debt-free by FY29. The company's net debt-to-equity ratio, including deferred payment obligations, declined to 0.37 times in FY26 from 0.56 times in FY24.
Domestic brokerage Motilal Oswal also has a Buy rating and a target price of Rs 1,350, describing the company as the 'Gateway to Digital India'. According to its estimates, Jio is valued at par with Bharti Airtel's India business at both the IPO price and the current market price (CMP), excluding Indus and Bharti Airtel's minority interests.
Motilal Oswal believes Jio could command a premium over Bharti Airtel's India business in the near term, supported by its market leadership, greater influence over industry tariffs and a free float of less than 3%. However, the brokerage noted that its earnings and valuation estimates remain highly sensitive to wireless ARPU growth.
Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onjio platformsbharti airtelJio PlatformsJio Q2 resultsJio share priceJio stock market debutJio ARPUJio 5G subscribersNomuraMotilal Oswal
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onjio platformsbharti airtelJio PlatformsJio Q2 resultsJio share priceJio stock market debutJio ARPUJio 5G subscribersNomuraMotilal Oswal
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth EditionSome elections matter more than you know: No crop changed in the fields, yet sugar, coffee and soya got cheaper in a day
You can buy a walkie-talkie online. But can you legally use it?
KYB and KYC: Quick commerce, the Damani premium and what DMart must deliver – 3rd and concluding part
KYC and KYB: Inside Damani’s DMart, the retail chain for the middle class. And stock for the long term? – Part 2 of 3
Will it be a regulatory nightmare if an exchange lists on its own platform?
KYC and KYB: Inside Damani’s Avenue Supermarts that refuses to charge more – Part 1 of 3
- 1
- 2
- 3
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
