Reliance Industries-backed Jio Platforms continued its strong stock market debut on Thursday, October 29, with shares rising another 5% in intraday trade after a blockbuster listing a day earlier. The stock climbed to an intraday high of ₹1,490, taking its gains to around 33% above the initial public offering (IPO) price of ₹1,119 in just two trading sessions.
Jio Platforms shares had surged nearly 27% on their first day of trading on Wednesday to close at ₹1,468.80. The stock’s strong performance has drawn investor attention to India’s largest telecom operator by market value, with brokerages highlighting its subscriber base, potential tariff increases, broadband expansion and digital services as key growth drivers.
The company’s market valuation crossed ₹13.05 lakh crore, or around $137 billion, according to Bloomberg. Jio Platforms’ strong debut followed its ₹30,213-crore IPO, which had priced the shares at ₹1,119 apiece. The stock opened at ₹1,358 on both the BSE and NSE, delivering listing gains of around 21% to investors who received shares in the offering.
Following its listing, Jio Platforms became India’s second-most valuable listed company, behind parent Reliance Industries, whose market capitalisation stood at around ₹16.12 lakh crore. Jio also overtook Bharti Airtel in market value, underlining its position in India’s telecom and digital services industry.
Jio Platforms: What should investors do?
Despite the sharp rally, investors should assess Jio Platforms’ business performance and valuation rather than base decisions solely on its listing gains, according to Ravi Singh, Chief Research Officer at Master Capital Services.
“The key factors to track will be whether the company can sustain revenue growth, improve profitability and execute its expansion plans while maintaining healthy cash flows. The listing-day jump matters less,” Singh said.
He added that investors should monitor quarterly revenue, earnings before interest, taxes, depreciation and amortisation (EBITDA) margins, average revenue per user (ARPU) and cash flow. The performance of Jio’s telecom operations, digital services and applications will also be important in determining whether the company can sustain its growth over the long term.
Brokerages have begun coverage of Jio Platforms with positive recommendations, citing its market leadership and potential to improve revenue and profitability.
Nomura initiated coverage with a Buy rating and a target price of ₹1,340, valuing the company at 12 times its estimated EBITDA for December 2028. The brokerage expects EBITDA to grow at a compound annual growth rate (CAGR) of around 13.5% between FY26 and FY29.
“Jio, once the disruptor, is now the leader. It has ~42% of the country’s wireless subscribers, ~60% of data traffic and 43% of home broadband. In our view, the listing will likely push Jio Platforms (JPL IN), the price setter, towards steady tariff hikes that peers can follow,” Nomura said.
The brokerage believes Jio’s market position could support tariff increases across the telecom industry. Connectivity spending remains relatively low in India, leaving room for higher prices. However, delays in tariff hikes and higher handset and equipment costs remain risks to its outlook.
Motilal Oswal Financial Services (MOSL) also initiated coverage with a Buy rating and a target price of ₹1,350, implying around 21% upside from the IPO price. Its valuation is based on a discounted cash flow-backed multiple of 11.5 times estimated FY29 reported EBITDA.
“We believe JPL could trade at a premium to Bharti’s India business over the near term, driven by its market leadership, greater influence over industry tariffs, and low liquidity (free float of less than 3%),” MOSL said.
The brokerage expects Jio Platforms’ revenue, reported EBITDA and profit after tax to grow at CAGRs of 14%, 15% and 20%, respectively, between FY26 and FY29. Subscriber additions, tariff increases, broadband expansion and digital services are expected to support this growth. MOSL also projects cumulative free cash flow of ₹1.46 trillion over FY26–FY29, potentially enabling Jio Platforms to achieve a net cash position by FY29.
For long-term investors, quarterly earnings, ARPU trends, margins and cash generation will be key indicators to watch. The ability to translate its large subscriber base and market position into sustained earnings growth will be crucial to justifying its valuation.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
