Jio Platforms shares made a strong debut on the stock exchanges, opening at ₹1,358 apiece on both the BSE and NSE, a premium of 21.36% over the issue price of ₹1,119. The stock opened above the target price of ₹1,350 set by Motilal Oswal Financial Services, which had initiated coverage with a ‘Buy’ rating ahead of the listing.
Jio Platforms shares touched an intraday high of ₹1,375 on the BSE and NSE.
The listing gives investors an early glimpse of market expectations for Reliance Industries’ digital services arm, whose growth prospects are closely tied to telecom tariff increases, subscriber additions, expansion of home broadband and the scaling up of its digital platform businesses.
Jio Platforms IPO comprised an entirely fresh issue of 27 crore shares, with the price band set at ₹1,065– ₹1,119 per share.
Why Motilal Oswal is bullish on Jio Platforms
Motilal Oswal initiated coverage on Jio Platforms with a ‘Buy’ rating and a target price of ₹1,350, implying an upside of around 21% from the IPO price. The brokerage’s valuation is based on a discounted cash flow (DCF) model, using an estimated 11.5 times FY29 reported EBITDA multiple.
The brokerage expects Jio Platforms to deliver compound annual growth rates (CAGRs) of 14% in consolidated revenue, 15% in reported EBITDA and 20% in profit after tax (PAT) between FY26 and FY29.
It attributes the expected growth to continued subscriber additions, anticipated telecom tariff hikes, an expanding home broadband subscriber base and the growth of digital platform offerings. Motilal Oswal has factored in tariff increases of around 15% from March 2027, making the timing and extent of any price hikes an important driver of its forecasts.
The brokerage also believes Jio Platforms could command a premium to Bharti Airtel’s India business in the near term, citing its market leadership, greater influence over industry tariffs and a limited free float of less than 3%.
Capex moderation and cash generation in focus
Jio Platforms’ capital expenditure moderated to around ₹34,000 crore in FY26 following the completion of its pan-India 5G rollout. Motilal Oswal expects annual capex to remain in the range of ₹34,000– ₹36,000 crore over the medium term.
This moderation, combined with stronger operating cash flows and IPO proceeds, is expected to improve the company’s financial position. The brokerage projects cumulative free cash flow of ₹1.46 lakh crore between FY26 and FY29, after interest and lease payments, and expects Jio Platforms to become a net cash company by FY29.
Its valuation assigns an enterprise value of around ₹12 lakh crore to Reliance Jio Infocomm’s wireless and home broadband businesses, along with approximately ₹81,700 crore to Jio Platforms’ digital and other non-RJIL businesses. After accounting for net debt and IPO proceeds, Motilal Oswal arrives at an estimated equity value of ₹12.4 lakh crore.
Jio Platforms share price: Bull and bear-case targets
Motilal Oswal’s valuation scenarios highlight the potential range of outcomes for the stock. Its bull-case target price is ₹1,690, while its bear-case target stands at ₹1,035, reflecting the sensitivity of the business to telecom pricing, subscriber economics and investment requirements.
The brokerage estimates that every ₹10 per month change in wireless average revenue per user (ARPU) could alter consolidated EBITDA by approximately ₹3,800– ₹3,900 crore, or around 4%, and change its target price by roughly ₹58 per share.
The company’s ability to implement tariff increases as expected, sustain subscriber growth and scale its digital platforms will therefore be crucial to the investment outlook.
Key risks investors should watch
Despite the positive outlook, Motilal Oswal flagged several risks, including intense competition, the capital-intensive nature of the telecom business, technology disruption and regulatory uncertainty. Dependence on Reliance Industries group entities and material related-party transactions are additional factors for investors to monitor.
Any delay in tariff hikes, heightened competitive pressure, higher-than-expected capital expenditure or slower growth in digital platforms could weigh on earnings and valuations. The brokerage has also not included any significant contribution from Jio Platforms’ international initiatives, meaning successful expansion in these areas could offer additional upside.
With the stock opening above Motilal Oswal’s ₹1,350 target, investors will be watching whether earnings growth, tariff increases and cash generation can justify its post-listing valuation. The debut premium reflects strong initial demand, but the stock’s performance beyond listing will depend on the company’s ability to deliver on its growth and profitability targets.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
