Jio Platforms Ltd is generating more cash and reducing debt ahead of its proposed initial share sale. The net leverage ratio fell from 0.88 times in FY24 to 0.36 times in FY26. “The next phase will be defined by monetisation at a scale rarely seen globally,” said Vivekanand S.
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Jio Platforms Ltd is generating more cash and reducing its reliance on debt ahead of its proposed initial share sale. The net leverage ratio of Reliance Industries Ltd’s digital arm fell from 0.88 times in FY24 to 0.36 times in FY26, giving it more financial flexibility.
The proceeds from the fresh share issue are intended partly to repay borrowings of Reliance Jio Infocomm Ltd (RJIL) and partly for general corporate purposes, as Jio seeks to build on its profitable growth.
The IPO comes as Jio shifts its focus from expanding networks and adding customers to generating more revenue from the infrastructure built over the past decade. For Jio, that means getting more value from its existing customer base while developing businesses beyond mobile connectivity.
“The proposed IPO is expected to reinforce Jio's financial position by moving the business towards a more conservative capital structure,” said Vivekanand S., an analyst at Ambit Capital Research. “The next phase will be defined by monetisation at a scale rarely seen globally, alongside greater capital expenditure discipline.”
Jio Platforms’ revenue from operations rose from Rs 1.10 lakh crore in FY24 to Rs 1.47 lakh crore in FY26, while profit after tax increased from Rs 21,423 crore to Rs 30,049 crore, according to the company. Significantly, the company’s cash left over after capital expenditure rose from Rs 1,449 crore in FY24 to Rs 42,071 crore in FY26, giving it more headroom to invest in growth and reduce debt.
Jio changed India’s mobile market through large investments in network infrastructure and aggressive pricing, prompting rivals to follow suit. But the telecom industry now needs to generate more revenue from the services it provides.
“Consumers continue to enjoy substantial benefits from unlimited data and affordable services, creating significant customer surplus,” Vivekanand said. Operators will increasingly seek to correct the imbalance between the value customers receive and the revenue companies generate, he added.
Jio’s average monthly revenue per user rose from Rs 181.7 in FY24 to Rs 214 in FY26, while monthly data consumption increased from 28.7 GB to 42.3 GB.
Beyond mobile services, Jio has developed an end-to-end 5G stack spanning core network technology, radio equipment and network software. As of March 2026, Jio Platforms and its units had filed 6,817 patent applications, of which 1,009 had been granted globally. Jio has also developed its pre-6G stack and Giga MIMO Radio, which it displayed at the India Mobile Congress in New Delhi last week.
Jio is also expanding its home broadband business. It had 27.1 million fixed broadband customers at the end of FY26, giving it a 42.6 percent market share, according to the draft IPO documents. Its fibre network and fixed wireless access services let it reach homes where laying fibre is difficult or uneconomical.
The company also plans to take its proprietary network technology to overseas telecom operators through partnerships and managed-service arrangements. If successful, this could create a source of revenue beyond its Indian operations.