The listing of Jio Platforms has put the spotlight on India’s telecom sector, with investors now weighing whether the newly listed Reliance Industries-backed company or established rival Bharti Airtel offers a better investment opportunity.
Jio Platforms shares have surged nearly 28% from their issue price of ₹1,119 since making their market debut on Wednesday, 28 October, taking its market capitalisation to nearly ₹13.18 lakh crore and making it India’s second-most valuable listed company after Reliance Industries. The strong debut and subsequent gains follow an IPO that attracted bids for 22.19 times the shares on offer.
Bharti Airtel, meanwhile, has built a strong long-term track record, with its shares delivering returns of 586.10% over the past decade and 187.07% over five years. However, the stock remains down 6.64% so far in 2026. With Jio commanding a substantial valuation and Airtel offering an established earnings track record, which telecom stock should investors consider now? Experts weigh in on their growth prospects, valuations and investment appeal.
The listing of Reliance Industries’ telecom arm Jio has brought the comparison with Bharti Airtel into sharper focus, but experts believe the investment decision goes beyond subscriber scale and growth prospects. While Jio offers an opportunity to tap into its expanding 5G network and digital ecosystem, its rich valuation raises questions about the returns investors can expect.
Bharti Airtel, meanwhile, remains a stronger proposition for investors seeking earnings visibility, higher ARPU, robust cash flows and disciplined capital allocation. Experts say investors should weigh valuations, earnings growth and execution risks before choosing between the two telecom stocks.
Which telecom stock should investors buy?
Gaurav Arora, Head of Research at SAHI, said Jio’s listing at a valuation of around ₹10.3 lakh crore places it among India’s top five companies by market capitalisation from day one. This, he said, changes the investment question from assessing the company’s growth potential to evaluating the returns investors can realistically expect from current levels. Companies of this scale rarely grow significantly faster than the broader economy, making low double-digit annual returns a reasonable base case.
Arora pointed to Jio’s average revenue per user (ARPU) of around ₹215 per month, or approximately $2.5, across its subscriber base of 53 crore. While US telecom operators generate ARPU of $45 or more, he cautioned against viewing the gap as an indication of significant untapped pricing power. Much of the difference reflects the disparity in income levels, with the average American earning around 30 times the average Indian.
He also noted that ARPU growth in India has historically been uneven, with increases largely coming through tariff hikes in 2019, 2021 and 2024. These hikes have typically required coordinated moves by all three telecom operators and have depended on regulatory considerations, making it difficult to factor in consistent ARPU growth over a 10-year investment horizon.
“Until Jio’s valuation reflects a more grounded growth trajectory rather than scale alone, Bharti Airtel remains the stronger investment story,” Arora said.
Ratiraj Tibrewal, Director at Choice Capital Advisors, said Jio and Bharti Airtel are both quality businesses but represent fundamentally different investment propositions.
According to Tibrewal, Jio is primarily a scale-and-growth story, supported by the country’s largest subscriber base, an aggressive 5G and fixed wireless access rollout, and a digital ecosystem spanning cloud, enterprise and artificial intelligence (AI), which is still largely awaiting monetisation. Its investment thesis hinges on ARPU improving towards Airtel’s levels, stronger cash flows as the capital expenditure cycle peaks, and a reduction in leverage.
Bharti Airtel, on the other hand, represents a quality-and-returns proposition, backed by structurally higher ARPU due to its premium postpaid subscriber mix, strong return ratios, robust free cash flow generation and disciplined capital allocation. Tibrewal also highlighted Airtel’s track record of taking the lead on tariff hikes.
He cautioned that Jio’s listing, by itself, should not be considered a reason to buy the stock. Investors should instead compare the two companies on the basis of their earnings growth over the next two to three years, EV/EBITDA valuations relative to growth, free cash flow yield, return on capital employed and their ability to pass on tariff increases without losing subscribers.
Key risks include regulatory changes and spectrum costs across the sector, execution challenges in monetising Jio’s digital ecosystem, and the possibility that its valuation already factors in substantial growth expectations.
“Investors with a longer investment horizon and a higher risk appetite can consider Jio, while those prioritising earnings visibility and capital discipline may prefer Airtel,” Tibrewal said. Ultimately, the price investors pay and the companies’ execution will determine which stock delivers better risk-adjusted returns.
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.
