Jio Platforms Q2 profit rises 13% on premium push, broadband demand ahead of IPO

IPO-bound Jio Platforms on Friday reported a steady growth in the July–September quarter, powered by a growing user base, strong demand for home broadband, and a shift toward higher-value customers.

Jio Platforms, which houses Reliance Industries Ltd’s telecom and digital services business, reported a 3.7% sequential and 12.8% YoY (year-on-year) growth in net profit to ₹7,375 crore during the quarter.

The company’s revenue from operations rose 3.71% QoQ (quarter-on-quarter) and 14.6% YoY to ₹36,332 crore, beating the street estimates.

In the June quarter, the company’s revenues grew 3.07% sequentially and 19% YoY to ₹35,032 crore. The company clocked a net profit of ₹7,110 crore in the preceding quarter, with a 1.2% QoQ and 25% YoY growth.

“Jio’s innovative radio solutions and ubiquitous stand-alone 5G network have enabled it to provide broadband connectivity to households across India. We continue to augment our capabilities with pioneering systems and platforms, ensuring the benefits of ever-evolving technology landscape for all Indians,” said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited

IPO momentum building

Jio’s continued strong performance assumes significance ahead of its planned listing on the stock exchanges by the first half of 2026. A higher ARPU and improved profitability would make it a more attractive proposition for investors and support a stronger valuation at the time of the IPO.

Also Read | IPO-bound Jio Platforms set for steady Q2 growth on premium push

The company’s mainstay telecom vertical, housed under Reliance Jio Infocomm, continues to see upside in its average revenue per user (Arpu) during the quarter, driven by higher data consumption and a limited tariff intervention during the quarter like removal of the 1 GB base plan from online recharge portals.

Reliance Jio is India’s largest telecom operator by market share and a subsidiary of Jio Platforms, accounting for most of its business.

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Margin and profitability trend

Jio’s earnings before interest, taxes, depreciation, and amortization (ebitda) rose 17.7% on-year and 3.4% sequentially to ₹18,757 crore in the September quarter. Ebitda margin rose 140 basis points on-year and contracted marginally sequentially to 51.6%.

Analysts say ahead of the IPO, the company would look to increase its profitability and return on capital employed through another round of tariff hikes.

At the end of September, Jio had million 234 million 5G subscribers, up from 213 million in the preceding June quarter. Monthly average revenue per user (Arpu) rose 1.2% sequentially to ₹211.4 from ₹208.8 at the end of June.

Recently, Jio also removed the entry-level 1 GB plan from its online recharge. Analysts such as brokerage Macquarie saw that as a way for the company to close the gap with Bharti Airtel, with a focus on premiumization.

Also Read | Jio Platforms IPO could see another tariff war—to hike telecom rates

Bharti Airtel is yet to declare its September quarter earnings. The telecom operator, however, is leading the industry with a Arpu of ₹250 as of June end.

Reliance Jio net added 8.3 million subscribers during the September quarter, taking its subscriber base to 506.4 million. In the preceding quarter, the company had added 9.9 million subscribers.