Brokerage cites reasonable valuation, improving cash flows and growth opportunities beyond core telecom business

 

THEBUSINESSBYTES BUREAU

MUMBAI, OCTOBER 16, 2026

Jio Platforms’ proposed initial public offering (IPO) has received an encouraging response from market analysts, with potential listing gains of 15–20 per cent seen as investor attention turns to the company’s valuation, improving cash flows and long-term growth prospects. Emkay Research has assigned a ‘Subscribe’ rating to the issue, citing Jio’s market leadership, pricing power and multiple avenues for growth, while cautioning that listing performance will ultimately depend on market conditions and investor demand.

In its IPO note dated October 16, Emkay Research said the price band appeared reasonable in the context of Jio’s growth profile, execution track record and competitive position in the telecom sector.

At the upper end of the price band, Jio is valued at around 33.5 times its earnings, compared with approximately 38.9 times for rival Bharti Airtel, implying a discount of about 14 per cent. Analysts believe this relative valuation leaves room for potential gains, although some of Jio’s future growth prospects may already be reflected in the issue price.

A key factor supporting the investment case is the moderation in capital expenditure following the heavy investment phase of the 5G rollout. According to Emkay Research, capital expenditure as a proportion of revenue declined from 48.8 per cent in FY24 to 23.3 per cent in FY26. The company generated free cash flow of around ₹32,500 crore in FY26.

The brokerage expects cash generation to improve further as the need for large-scale network investments eases. Lower capital expenditure could strengthen Jio’s financial flexibility and provide greater scope to invest in new businesses while supporting its long-term growth strategy.

Beyond its core mobility business, Jio’s growth prospects are increasingly linked to home broadband, enterprise services, cloud computing and artificial intelligence (AI). Analysts also see opportunities to monetise the company’s in-house technology stack in international markets. Home broadband, in particular, is viewed as a significant avenue for expanding its customer base and deepening its presence in the digital services market.

The proposed standalone listing could also have implications for Reliance Industries Ltd. (RIL), Jio’s parent company. RIL shares rose around 3.4 per cent on October 15 following the announcement of Jio’s IPO price band, reflecting investor interest in the proposed offering.

The listing is also being viewed as a potential catalyst for further value unlocking for RIL shareholders by providing a more direct market valuation of its telecom and digital services business. However, the extent of any such benefit will depend on investor appetite for the issue, Jio’s eventual market valuation and broader market conditions.