Jio Platforms Anticipates 3.2% Profit Growth in Q2 Results
Jio Platforms is set to release its Q2 results on October 30, with expectations for profit and revenue growth.
Jio Platforms' revenue is projected at ₹35,100 crore for Q2 FY27.
Profit after tax is estimated to rise 3.2% to ₹7,400 crore.
The company's average revenue per user (ARPU) is expected to increase to ₹218.
Jio Platforms, a leading telecommunications company in India, is preparing to announce its financial results for the second quarter of FY27 on October 30. Analysts predict a modest growth in profit, with estimates suggesting a 3.2% increase in profit after tax, reaching ₹7,400 crore. This announcement follows the company's recent stock market debut, which saw its shares rise significantly, reflecting strong investor interest.
In the preceding quarter, Jio Platforms reported a revenue of ₹34,200 crore, and analysts are optimistic about a quarter-on-quarter increase to ₹35,100 crore for Q2 FY27. The expected growth is attributed to factors such as an increase in average revenue per user (ARPU), which is anticipated to rise to ₹218 from ₹215.6 in the previous quarter, and a net addition of subscribers, projected between 8 million and 10 million.
The company's EBITDA is also expected to show a positive trend, with a forecasted rise of 2.7% to ₹19,200 crore, maintaining an EBITDA margin of 54.7%. The growth in revenue is likely to be supported by the expansion of home broadband services and an additional day in the quarter, which could positively impact subscriber metrics.
Despite the anticipated growth, uncertainty looms over the potential declaration of dividends, as Jio Platforms has not paid dividends in the last three years. The company’s Red Herring Prospectus indicates that any future dividend payments will be at the discretion of the Board, influenced by various internal and external factors. This lack of clarity has left investors eager for more information during the upcoming results announcement.
Looking ahead, analysts believe that Jio Platforms' growth trajectory will be bolstered by several factors, including potential telecom tariff hikes, continued subscriber growth, and the increasing adoption of digital and cloud services. Brokerages such as Motilal Oswal project a revenue compound annual growth rate (CAGR) of 14% from FY26 to FY29, alongside improvements in profitability and cash flow generation.
