Reliance Jio Platforms plans to commercialise its technology stack in international markets through partnerships. Instead of selling hardware or software licences, it intends to operate as a managed services partner, offering its technology to telecom operators in both developed and emerging economies.
Jio expects growth to be driven by its mobility, enterprise, home broadband, and digital services businesses. Rather than depending primarily on per-gigabyte pricing, the company plans to introduce additional services that can generate higher revenue per user.
Akash Ambani, Managing Director of Jio Platforms, said the strategy would be to leverage the infrastructure investments already made, expand the range of services offered, and translate greater customer value into sustained earnings growth. He talked of three pillars around technology, digital gateway and infrastructure to address “India’s $1.4 trillion digital economy by FY31.” Ambani pointed out how pricing per GB data moved from ₹228 to ₹7.5 following Jio’s entry in the telecom market while usage moved from less than 0.2 GB per customer per month to 26.7 GB per customer per month.
While the growth focus will remain on India, Ambani said the company will also assess overseas opportunities based on their potential contribution to profitability, rather than committing to a fixed domestic-international revenue mix.
Monetise technology post listing
The shift towards services and technology monetisation is expected to complement Jio’s established connectivity business while supporting profitability after its listing, he said, while addressing the media ahead of the company’s IPO, which opens on Wednesday.
The company intends to use the entire proceeds of ₹30,213 crore from its IPO to eliminate its nearly $3 billion in net debt, while funding future expansion through internal cash flows.
The proposed offering is expected to leave Jio in a net-debt-free position, strengthening its balance sheet as it seeks to monetise investments in 5G infrastructure, home broadband, and digital services. The company generates about 30 per cent of its revenue in the form of free cash flow, which it expects to deploy towards continued investments in technology and customer services, Ambani said.
Jio’s next phase of growth will focus on extracting greater value from its existing infrastructure and expanding its range of services, rather than relying primarily on tariff increases.
Representing the merchant bankers for the issue, Uday Kotak said the price band had been determined after extensive consultations with institutional investors.
Valuation 17 per cent cheaper than the listed competitor
At the upper end of the price band, Jio’s valuation translates into 34 times FY26 earnings, compared with 41 times for its closest peer, he said.
The comparison implies that Jio is being valued at a lower earnings multiple than its peer. On a like-for-like basis, the 34x earnings multiple represents a discount of about 17 per cent to the 41x multiple. However, the peer was not identified, and the comparison alone does not establish whether the IPO is undervalued.
Responding to concerns about profitability after listing, Ambani said Jio’s EBITDA margin had risen from 50 per cent to 53 per cent in the latest quarter. Further improvements would come from optimising technology operations and introducing services beyond its licensed telecom businesses.
The company also sees scope to increase utilisation of its 5G network, which covers 99 per cent of India’s population, according to Ambani. Current utilisation stands at about 33 per cent, leaving room to migrate more customers to 5G and improve network efficiency.
In home broadband, Jio said its proprietary technology could expand its serviceable market from 14 million homes to 100 million homes. With much of the network infrastructure already deployed, the company expects to fulfil broadband requests within 48 hours, including in smaller towns and rural markets. The approach uses wireless connectivity to address the last-mile challenge without requiring fibre to reach every home.