Jio Platforms Reports 11.3% Revenue Growth in Q2 FY27
Jio Platforms sees significant growth driven by broadband, enterprise services, and AI, alongside steady telecom performance.
Jio Platforms' revenue reached Rs 47,485 crore, an 11.3% increase year-on-year.
The company added 1.9 million mobile subscribers in September, leading the telecom sector.
Analysts predict further growth from broadband and AI services, despite anticipated tariff hikes.
Jio Platforms Ltd, a subsidiary of Reliance Industries, has reported a revenue of Rs 47,485 crore for the second quarter of FY27, marking an 11.3% increase compared to the same period last year. This growth is attributed to the company's expanding digital services, which include broadband and enterprise solutions, alongside its established telecom operations. The positive earnings report reflects a steady increase in subscriber numbers and average revenue per user (ARPU).
Analysts have noted that Jio's growth trajectory is likely to be bolstered by value-added services beyond traditional tariff increases. Piyush Pandey from Centrum India highlighted the importance of broadband and AI as key drivers for the company's future growth. This comes in the wake of Jio's recent Q2 results, which demonstrated a robust performance in digital services, supported by a growing subscriber base and higher ARPU.
In September, Jio led the Indian telecom market by adding 1.9 million mobile subscribers, contributing significantly to the industry's overall net addition of 2.2 million. This performance is part of a broader trend, with Jio's management emphasizing that future growth will not solely rely on tariff hikes but will also focus on enhancing customer spending and expanding its digital offerings.
The company is also preparing for anticipated telecom tariff hikes, with projections suggesting a 15% increase in smartphone tariffs by March 2027. However, Jio's leadership has reiterated that its growth strategy will encompass a wider range of services, including improvements in subscriber mix and enhanced digital solutions.
Looking ahead, Jio Platforms is expected to continue its expansion into areas beyond mobile telecom, which is crucial for its earnings outlook. Analysts remain optimistic, with brokerages like Nomura and Goldman Sachs maintaining their Buy ratings on Reliance Industries, citing the company's strong quarterly performance and future growth potential in the digital sector.