Mumbai, India – Jio Platforms Ltd. experienced another significant surge in its stock price on Thursday, climbing 5.12% to reach ₹1,490 apiece on the BSE. This impressive rally has propelled the company's market capitalization beyond ₹13.6 lakh crore intraday, further solidifying its position as one of India's most valuable stocks.
The latest increase means Jio Platforms shares have now gained a remarkable 33% over their initial public offering (IPO) price of ₹1,119. This performance has not only extended its post-listing 'dream run' but also surpassed all previously set analyst targets, including those from Elara Securities (₹1,367), MOFSL (₹1,350), and Nomura India (₹1,340), which were breached on the listing day itself.
Even a more recent target of ₹1,435 set by Dolat Capital, implying only a modest upside, was overcome at the opening bell of Thursday's trading session. Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, commented on the strong debut, noting that it “breaks the recent run of disappointing mega-IPO listings and signals sustained investor appetite for quality offerings, potentially supporting the IPO pipeline into the next quarter.”
Future Outlook and Tariff Hikes
Despite the strong market performance, the telecom sector continues to face challenges. Dolat Capital highlighted that return ratios for operators remain suboptimal due to substantial investments, particularly in 5G infrastructure, even after three tariff hikes since November 2019. The brokerage anticipates further industry-wide tariff hikes every 2.5 to 3 years, with the next round projected for Q1FY28.
Dolat Capital also forecasts that average revenue per user (ARPU) could reach ₹300. The firm believes that while Jio Platforms has historically prioritized volume over pricing, allowing competitors like Bharti to widen their ARPU premium, this gap is expected to narrow. This shift is anticipated as JioBharat users upgrade to smartphones and Jio Platforms gradually reduces its strategic tariff discounts.
Growth Projections
Looking ahead, Dolat Capital estimates robust growth for Jio Platforms. The brokerage projects revenue, EBITDA, and adjusted PAT growth of 13%, 15%, and 21% respectively over the fiscal years 2026-2029. These projections are underpinned by expected tariff hikes, a trend towards premium services, 5G monetization strategies, and the implementation of pay-as-you-use models.