Fresh Capital Strategy: Financial Analysis of Jio’s DRHP

29 June 2026

Details of the Issue to the Public

• Fresh Issue- Up to 270,000,000 Equity Shares of face value of ₹10 each for cash
• Listing- NSE and BSE

Objective of the Issue

• Prepayment, in full or in part, of certain outstanding borrowings availed by the Material Subsidiary, namely, RJIL. An aggregate amount of up to ₹275,000 million from the Net Proceeds is proposed to be utilized towards prepayment, in full or in part, of the principal amount outstandin of certain borrowings availed by Reliance Jio Infocomm Limited (RJJL).
• General corporate purposes, to be finalised upon the Issue determination of listed price. It includes purpose like- strategic initiatives, funding organic and inorganic growth opportunities, capital expenditure.

Business Model

Jio is built on core pillars of proprietary technology and phygital distribution capabilities enabling us to provide seamless connectivity and digital services to our customers. Its product portfolio includes multiple products offered to business and consumers.

Offerings to Consumers –

• Mobile and fixed digital connectivity, such as wireless and fixed broadband
• Digital services across entertainment, cloud gaming, cloud compute, cloud PC and storage, and smart home solutions
  through our own and third-party products
• Access to next generation AI-based products, such as AI assistants.

Offerings to Business –

• Enterprise-grade broadband and leased line-based connectivity
• Digital services such as cloud, productivity, unified communications platform, IoT, Managed Wi-Fi; private 5G and security solutions to digitise operations through our own and third-party products
• End-to-end managed information and communication services
• Access to next generation AI-based products, such as AI enterprise suite products.

Market Share

Since our launch in 2016, JIO has fundamentally reshaped digital connectivity for India, and created an all-internet protocol-led 4G network
for consumers to seamlessly access digital services. In Fiscal 2026, around 60% of India’s wireless data traffic was on our network, and as of March 31, 2026, we were the largest digital connectivity player, followed by Bharti Airtel40 at 35.13%, Vodafone Idea at 12.65%, and BSNL at 2.24%. Jio has successfully transformed India’s digital landscape over the past decade. Before Jio entered in the market in FY2016 average download speed was around 2.5 Mbps and one GB of data cost ₹228.0 thus average data usage per user was also just 0.2 GB per month. Now, in FY26 download speed reached to over 68 Mbps, data price have crashed to highly affordable ₹7.9 per GB, and average monthly usage per customer has expanded exponentially to 25.7 GB. Jio has total customer base of 524.4 million, making it market leader in both mobile and broadband, where it is 1.4 times the size of the Bharti Airtel. This massive user base show deep engagement, with average
per capita data consumption of 42.3 GB and 361.6 million monthly active users across its suite of applications.

Financial Performance Analysis

Financial Metrics:

Particulars	2024 (Rs Cr)	2025 (Rs Cr)	2026 (Rs Cr)
Total Revenue	1,10,175.40	1,29,333.00	1,49,759.10
EBITDA	54,958.70	64,170.00	76,255.40
EBIT	32,855.60	40,032.40	49,006.50
Net Profit	21,434.00	26,120.30	30,052.70
Capex	53,606.70	44,349.40	34,255.30
Total Assets	5,39,580.40	5,81,233.80	6,15,594.00
Total Debt	67,110.90	85,695.80	84,668.60
Total Equity	2,79,421.70	3,06,181.20	3,37,076.20
Free Cashflow	4,054.90	23,806.30	43,301.00

Key Financial Ratios:

Particulars	2024	2025	2026
EBITDA Margin	49.88%	49.62%	50.92%
Net Income Margin	19.45%	20.20%	20.07%
Return on Capital Employed (ROCE)	9.48%	10.22%	11.62%
Return on Asset (ROA)	3.97%	4.49%	4.88%
Return on Equity (ROE)	7.67%	8.53%	8.92%
Fixed Asset Turnover Ratio	—	0.29	0.33
Capex/Revenue	0.49	0.34	0.23
Debt/Equity	0.24	0.27	0.25
Interest Coverage Ratio	8.11	8.16	5.66

Performance Indicator:

Particulars	2024	2025	2026
Total Consumer (in Rs Cr)	52.4	48.8	48.1
ARPU	181.7	206.2	214
Monthly data consumption	28.7	33.6	42.3
Monthly chur rate	1.52%	1.81%	1.67%

• Jio’s Average Revenue Per Customer (ARPU) has increased from Rs. 181 in FY24 to Rs. 214 in FY26. In July 2024 Jio has raised its tariffs by 12-25% across different plans which added to the growth of ARPU. Moreover, in the same time period monthly data consumption for Jio’s customer also rise from 28.7 GB to 42.3 GB.
• Jio demonstrated robust financial growth during FY24- FY26, with revenue increasing Rs. 110,175.4 Cr. to Rs. 149,759.1 Cr. reflecting sustainable expansion in its telecom and digital service business. Net Profit has also increased from Rs. 21,434 Cr. to 30,052.7. With increase in the size of the business Jio has efficiently able to maintain its margin. It has strong EBITDA margin of around 50% and Net Profit margin at around 20%.
• Capital Expenditure has declined significantly from Rs. 53,606.7 Cr. in FY24 to Rs. 34,255.3 Cr. in FY25, resulting in reduction of Capex-Revenue ratio. The trend may suggest company has largely completed its major network and spectrum investments and subsequent required lower incremental investment. Reduction in capex also contributed to increase in Free Cashflow generation. FCF increased from Rs. 4054.9 Cr. in FY24 to Rs. 43301 Cr. in FY26.
• Total Debt level for the company has significantly increased from Rs. 67,110.9 Cr. in FY24 to Rs. 84,668.6 Cr. in FY25, leading to increase in Debt/Equity ratio and decline in interest coverage ratio. Company aim to use the net money raised through the IPO in repayment of debt.