A potential Rs 11 lakh crore valuation for Jio Platforms could narrow the valuation gap with Bharti Airtel and unlock value for Reliance Industries, while a 15 per cent telecom tariff hike is expected in December 2026, according to Motilal Oswal.
Jio Platforms (JPL), the digital services holding company of Reliance Industries, could seek a valuation of around Rs 11 lakh crore ($114 billion) in its impending initial public offering (IPO), a level that could emerge as a re-rating catalyst for both Bharti Airtel and Reliance Industries, according to brokerage Motilal Oswal Financial Services.
The valuation reported by Bloomberg is broadly in line with Motilal Oswal’s own estimated valuation of Rs 11.2 lakh crore for JPL. At Rs 11 lakh crore, JPL would be valued at around 12 times FY28 estimated EV/EBITDA, compared with about 10.3 times for Bharti Airtel’s India business at its current market price.
Motilal Oswal said the JPL listing would provide investors with another large listed telecom investment option, but concerns that it could materially divert allocations away from Bharti Airtel may be overstated.
Jio is the market leader in wireless and home broadband and is expected to have a relatively low initial free float of around 3 per cent at listing. The brokerage said Bharti Airtel does not warrant a significant valuation discount to JPL, citing its stronger free cash flow generation and higher return on capital employed.
More from Business15 per cent telecom tariff hike seen in December 2026
The brokerage expects the long-awaited telecom tariff increase to become more likely after the JPL IPO and Vodafone Idea’s proposed fundraise.
Motilal Oswal has built in an estimated 15 per cent smartphone tariff hike in December 2026, which it expects could support earnings growth across the sector.
Bharti Airtel has already discontinued its entry-level Rs 299 daily unlimited data pack to support organic average revenue per user (ARPU) growth, while Reliance Jio has relaunched its JioPrime membership, which the brokerage views as a potential signal that tariff increases could be approaching.
The brokerage expects the tariff increase to provide greater visibility on an approximately 15 per cent EBITDA CAGR for the telecom business between FY26 and FY29.
What the Jio IPO means for Reliance Industries
For Reliance Industries, the listing could provide a clearer valuation for its 66.4 per cent stake in JPL and potentially unlock value.
Motilal Oswal estimates that RIL’s current market price already factors in an 18-36 per cent holding-company discount on its JPL stake, depending on the valuation assigned to Reliance Retail Ventures.
The brokerage said RIL would continue to offer exposure not only to Jio but also to India’s largest retailer, its integrated energy business and growth areas including new energy, data centres, artificial intelligence and FMCG.
It has assigned a Rs 1,530 target price to RIL and said stronger refining and petrochemicals earnings, along with a recovery in retail revenue growth and profitability, could be key medium-term triggers.
Jio’s financial profile
Motilal Oswal’s estimates show Reliance Jio’s wireless subscriber base rising from 497 million in FY26 to 541 million in FY28, while its overall subscriber base, including broadband, is projected to rise from 524 million to 584 million.
Jio’s revenue is estimated to increase from Rs 1.29 lakh crore in FY26 to Rs 1.69 lakh crore in FY28, while EBITDA is projected to rise from Rs 69,800 crore to Rs 95,700 crore. Its EBITDA margin is expected to improve from 54.2 per cent to 56.6 per cent over the same period.
