Reliance Industries Chairman Mukesh Ambani is preparing for Jio's historic IPO in H1 2026

Jio IPO Valuation $170 Bn: Math Behind India’s Biggest IPO 2026

Soumya Verma
10 Min Read

 Quick Take :

  1. Valuation: $130–170 Bn (Rs 11–14.5 lakh Cr) — India’s largest-ever IPO
  2. Key Detail: 2.5% stake sale could raise $4–4.3 Bn (Rs 33,000–36,000 Cr)
  3. Traction: 500 Mn+ subscribers, ARPU Rs 211, Q2 FY26 profit Rs 7,379 Cr
  4. Timeline: H1 2026 listing, DRHP filing awaited
  5. What’s Next: Morgan Stanley and Kotak drafting IPO papers now

Reliance Jio Platforms is preparing for what could be the largest IPO in Indian corporate history, with investment bankers proposing a valuation of up to $170 Bn (Rs 14.5 lakh Cr) for its H1 2026 listing — a number that would make Jio one of India’s top three companies by market capitalisation, surpassing rival Bharti Airtel.

This positions Jio’s IPO as the defining capital markets event of 2026. At the upper end, a 2.5% stake sale would raise approximately $4.3 Bn (Rs 36,000 Cr), surpassing Hyundai Motor India’s 2024 record — something every institutional investor globally will be watching closely.

StartupFeed Insight

What the numbers say: Jio’s proposed $170 Bn valuation implies a 13–14x EV/EBITDA multiple on its FY25 EBITDA of Rs 48,667 Cr — a premium to Airtel’s current trading multiple, but justified if ARPU crosses Rs 300 within 18 months.

What this means for you: 

  • If you’re a founder: Jio’s listing will pull massive liquidity from the market — plan your fundraise timing around H1 2026
  • If you’re an **investor**: Telecom sector re-rating is coming; Airtel’s valuation gap with Jio will narrow post-listing
  • If you’re an **employee**: Reliance group companies may see renewed ESOP unlocks as the conglomerate unbundles value

Our prediction: Jio will list by June 2026 at a valuation closer to $150 Bn, with the $170 Bn number serving as an aspirational anchor. A tariff hike expected in June 2026 could push ARPU past Rs 250, making the premium valuation more defensible by Q3 2026.

The Valuation Math

The $170 Bn number comes from a Bloomberg report citing investment bankers in discussions with Reliance Industries. The proposed range sits between $130 Bn and $170 Bn. At the top end, Jio would rank among the world’s top 5 telecom companies by market capitalisation.

Metric Jio (Proposed) Bharti Airtel (Current) Gap
Valuation $170 Bn (Rs 14.5 lakh Cr) $140 Bn (Rs 12.7 lakh Cr) +21%
FY25 Revenue Rs 1,00,891 Cr Rs 1,72,985 Cr -42%
FY25 EBITDA Rs 48,667 Cr Rs 78,292 Cr -38%
ARPU (Latest) Rs 211 Rs 245 -14%
Subscribers 500 Mn+ 450 Mn +11%

The data reveals a clear tension. Jio trails Airtel on revenue, EBITDA, and ARPU — yet seeks a higher valuation. The premium rests on three pillars: subscriber scale, digital platform optionality, and the Ambani growth narrative.

Why Bankers Are Bullish

Jio is not just a telecom company. Jio Platforms houses a digital empire spanning mobile services, home broadband (JioFiber), streaming (JioCinema), retail tech (JioMart), cloud services, and AI infrastructure built with Nvidia. Global tech giants Meta Platforms and Alphabet invested over $10 Bn in Jio during 2020, validating the platform thesis.

The financial trajectory supports the bullish case. Jio’s Q2 FY26 results showed revenue from operations at Rs 36,332 Cr (+14.6% YoY) and net profit at Rs 7,379 Cr (+12.8% YoY). ARPU climbed to Rs 211.4 — and a tariff hike expected by mid-2026 could push this past Rs 250.

Metric Q4 FY24 Q4 FY25 Q2 FY26 Direction
Revenue (Ops) Rs 25,959 Cr Rs 33,986 Cr Rs 36,332 Cr
Net Profit Rs 5,583 Cr Rs 7,022 Cr Rs 7,379 Cr
ARPU Rs 181.7 Rs 206.2 Rs 211.4
Subscribers 481.8 Mn 488.2 Mn 500 Mn+
5G Users 191 Mn Growing

Annualized, Jio is now tracking toward Rs 1,40,000 Cr+ in revenue for FY26 — a figure that makes the valuation multiple look more reasonable.

The Bear Case

Not everyone is convinced the $170 Bn price tag holds up. Three concerns stand out.

Holding company discount. Jio will list as a subsidiary of Reliance Industries, not a standalone entity. Historically, such structures attract a 15–20% discount from investors. That alone could shave $25–34 Bn off the $170 Bn target.

ARPU gap with Airtel. At Rs 211 versus Airtel’s Rs 245, Jio monetises each user 14% less. Until Jio closes this gap, the premium valuation faces pushback from public market investors accustomed to comparable analysis.

New IPO regulations. Revised listing norms require companies with post-listing market cap exceeding Rs 5 lakh Cr to dilute a maximum 2.5% equity. This caps the fundraise at approximately $4.3 Bn — enough for a record, but less than the $6 Bn+ originally expected.

Who Should Be Watching

Player Why This Matters
Bharti Airtel Jio’s public listing creates a direct valuation benchmark; Airtel could see re-rating if Jio prices below expectations
Vodafone Idea A well-capitalised public Jio accelerates Vi’s subscriber and market share losses further
Flipkart / PhonePe Other mega-IPOs planned for 2026 will compete for the same institutional capital pool
Global Pension Funds A $170 Bn Indian telecom stock creates a new must-own position for EM allocators

What the Founder Says

“Jio is making all arrangements to file for the IPO. We are aiming to list in the first half of 2026, subject to all necessary regulatory approvals.”

— Mukesh Ambani, Chairman of Reliance Industries, at the 48th AGM (August 2025)

The language is precise and deliberate. Ambani did not commit to a specific valuation or price band — keeping negotiating leverage with bankers intact. The emphasis on “regulatory approvals” also signals that Reliance is waiting for the government to formally notify revised IPO norms before filing its DRHP.

IPO Structure (Expected)

Component Details
IPO Type Offer for Sale (OFS) by Reliance Industries
Stake Sale ~2.5% of Jio Platforms equity
Expected Raise $4–4.3 Bn (Rs 33,000–36,000 Cr)
Bankers Morgan Stanley, Kotak (reportedly drafting papers)
Timeline H1 2026, pending DRHP filing and SEBI approval
Previous Investors Meta ($5.7 Bn), Alphabet ($4.5 Bn), KKR, Silver Lake, Vista, Mubadala

This will be Reliance’s first public offering of a major business unit since Reliance Petroleum’s debut in 2006 — a gap of nearly two decades.

What’s Next

Jio’s IPO will likely set the tone for India’s entire 2026 primary market. If it prices at the upper end of $170 Bn, it reinforces that India can produce and sustain mega-cap listings on par with global standards. If it prices at $130–140 Bn, the “national pride” premium will face a reality check.

The trigger to watch: a formal DRHP filing with SEBI, expected once the government notifies new IPO regulations. That filing will reveal the exact price band, lot size, and financial disclosures that turn a valuation rumour into a concrete investment decision.

The real question is not whether Jio will IPO. It is whether Indian public markets will assign a premium to platform optionality the way private investors did in 2020 — or whether they will value Jio strictly as a telecom stock. The answer will define how India’s next wave of mega-listings gets priced.

What do you think — is $170 Bn justified, or are bankers getting ahead of themselves? Let us know on Twitter @StartupFeed_in

Jio Platforms, the digital and telecom arm of Reliance Industries, operates India’s largest mobile network with over 500 million subscribers across 4G and 5G. Founded in 2016 and headquartered in Mumbai, Jio has raised over $25 Bn from investors including Meta Platforms, Alphabet, KKR, Silver Lake, and Mubadala. Jio Platforms is led by Akash M Ambani as Chairman of Reliance Jio Infocomm.

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