MUMBAI: Market analysts have offered a largely positive assessment of Jio Platforms’ initial public offering (IPO) following the announcement of its price band, with some experts anticipating potential listing gains of 15–20%. However, analysts have cautioned that the actual performance will depend on prevailing market conditions and investor demand.
In its IPO note dated October 16, Emkay Research assigned a ‘Subscribe’ rating to the issue, stating that the price band appeared reasonable in view of Jio’s market leadership, pricing power, execution track record and multiple growth opportunities.
Swastika Investmart has also recommended subscribing to the IPO. According to its assessment, Jio is valued at around 33.3 times its FY26 earnings at the upper end of the price band, compared with 40.7 times for Bharti Airtel. This implies an approximate 18% valuation discount to Airtel.
Other market assessments have placed Jio’s valuation at around 33.5 times earnings, against approximately 38.9 times for Bharti Airtel, indicating a discount of nearly 14%. Analysts have nevertheless cautioned that some of Jio’s anticipated future growth may already be reflected in its valuation.
A key factor supporting the investment case is the moderation in capital expenditure following Jio’s extensive 5G network rollout. Emkay Research noted that capital expenditure declined from 48.8% of revenue in FY24 to 23.3% in FY26, while free cash flow reached approximately ₹32,500 crore in FY26.
The brokerage expects cash generation to improve further as the requirement for large-scale network investments eases, potentially providing greater financial flexibility for future expansion and shareholder returns.
Beyond its core mobile connectivity business, analysts see home broadband, enterprise services, cloud computing and artificial intelligence as important drivers of Jio’s future growth. Emkay Research has also highlighted the potential to commercialise Jio’s in-house technology stack in international markets.
The proposed standalone listing is also being closely watched for its potential impact on Reliance Industries Ltd. (RIL), Jio’s parent company. RIL shares rose around 3.4% on October 15 following the announcement of Jio’s IPO price band.
Market participants view the listing as a possible catalyst for further value unlocking for RIL shareholders, although the extent of any benefit will depend on investor appetite, the final valuation and broader market developments.
While the brokerage assessments highlight Jio’s growth prospects and improving cash generation, investors will need to weigh these factors against valuation risks and the uncertainty surrounding listing-day performance.
