New Delhi, June 19 -- As Reliance Industries Ltd's unit Jio Platforms Ltd (JPL) prepares for its public market entrance, data from the draft red herring prospectus (DRHP) highlights how the digital giant has scaled its operational and financial metrics ahead of the listing.
A deep dive into the data compiled from Jio's draft papers filed with the Securities and Exchange Board of India (SEBI) underscores why international private equity backers and other marquee investors like Facebook's parent Meta and Google's parent Alphabet are holding firm on their long-term bets despite the lack of an exit-enabling Offer for Sale (OFS) in the upcoming primary issue.
The cap table
The concentration of Jio Platforms' cap table remains a key variable for institutional investors. Outside of the promoter holding by Reliance Industries (66.43%), technology giants Meta Platforms and Google account for a combined 17.71% stake.
This leaves international private equity firms and sovereign wealth funds -led by Saudi Arabia's PIF, and US-based KKR and Vista Equity-holding single-digit slivers, limiting free-float pressure post-listing.
Jio had sold a stake of nearly 33% to 13 investors in 2020, raising a total of Rs 1.52 trillion (about $20.2 billion then). The company was valued around Rs 4.91 trillion ($65.2 billion then) after completing the 2020 fundraising exercise. The company is now reportedly looking to seek a valuation of at least $130 billion, or more than Rs 12 trillion at current exchange rates. This suggests Jio's investors would be sitting on a two-fold gain on their investments in dollar terms.
Topline expansion and earnings velocity
Jio's financial trajectory over the last three fiscal years exhibits strong top-line compounding paired with aggressive operational leverage. Revenue from operations jumped 34% between FY24 and FY26.
Crucially, EBITDA acceleration outpaced revenue expansion over the same timeline, surging 38.7% to touch. Net profit jumped 40% during this period.
Margin profile
The core thesis for global tech investors relies heavily on structural margin expansion. While Jio's net profit margins hovered steady around the 20% baseline, its EBITDA margin expanded by 175 basis points in FY26, climbing to 51.91%. This structural cushion underpins the company's valuation premium ahead of the primary issue.
The 5G engine
Operationally, the focus has shifted from raw subscriber acquisition to high-yield monetization. While total customer volumes ticked upward to 524.4 million in FY26, the real operational pivot is visible in the compounding of the 5G base, which more than doubled within two fiscal cycles to 268.5 million users. This subscriber migration has driven Average Revenue Per User (ARPU) up to Rs 214 in the most recent quarter.
Peer comparison
When stacked against domestic rivals in its DRHP, Jio's financial philosophy becomes evident. Bharti Airtel continues to lead on aggregate global revenue and pure scale out of India, thanks to its Africa business.
However, Jio's business model is engineered for unmatched capital efficiency, converting its domestic subscriber base into a net profit of Rs 30,049.1 crore-closing in directly on its rival's profitability metrics despite structural differences in international operations. Meanwhile, Vodafone Idea remains a distant third.
Published by HT Digital Content Services with permission from VC Circle.