Archive · 12 Oct 2026
Nomura Sees Bharti Airtel Value as Jio IPO Approaches
Nomura is comparing the value of Jio and Bharti Airtel as Jio prepares for a possible stock-market listing.
It estimates what Reliance Industries’ large ownership stake in Jio could be worth.
Nomura says that value would be lower if investors apply a discount because Reliance owns the stake through a parent company.
It also says Reliance shares have already fallen considerably this year, which partly offsets the valuation difference.
Nomura thinks Bharti Airtel is attractively valued and may handle future price increases better.
It points to Bharti’s stronger customer retention after the July 2024 tariff increase.
Nomura gives Bharti a higher target share price than Reliance.
Its estimates suggest Jio’s projected valuation multiple would be higher than Bharti’s India telecom business.
Nomura estimates Reliance Industries’ 66.4% stake in Jio Platforms would be worth Rs 481–506 per Reliance share at the proposed IPO price band’s upper end.
Applying a 20% holding-company discount reduces that estimated value to Rs 385–405 per Reliance share; Nomura says the combined impact is Rs 136 per share.
Nomura maintains a Rs 1,690 target price for Reliance and a Buy rating with a Rs 2,360 target price for Bharti Airtel.
Nomura calls Bharti Airtel attractively valued and better positioned for potential tariff hikes, citing its premium subscribers and stronger subscriber retention after the July 2024 hike.
At the proposed IPO valuation, Nomura estimates Jio’s FY28F EV/Ebitda multiple at 10.5–10.9 times, versus 9.2 times for Bharti’s India telecom business.
- Who
- Nomura, Reliance Industries, Jio Platforms and Bharti Airtel.
- What
- Nomura assessed Jio’s proposed IPO valuation and compared it with Reliance and Bharti Airtel valuations.
- When
- The article refers to share-price data as of October 9, the July 2024 tariff hike and an anticipated tariff hike in 3QFY27F.
- Where
- India’s telecom and stock markets.
- Why
- The assessment considers Jio’s potential public listing, its implied valuation and how telecom operators may grow earnings through tariff increases.
- Reliance stake in Jio Platforms
- 66.4% after the potential listing, according to Nomura.
- Jio stake value per Reliance share
- Rs 481–506 before a holding-company discount; Rs 385–405 after a 20% discount.
- Nomura target prices
- Rs 1,690 for Reliance and Rs 2,360 for Bharti Airtel.
- Reliance year-to-date performance
- Down 26%, compared with a 14% fall in the NIFTY, as cited by Nomura.
- Post-July 2024 tariff hike subscribers
- Bharti Airtel added 2% over the following three quarters; Jio lost 0.3%, according to Nomura.
- Implied FY28F EV/Ebitda
- Jio: 10.5–10.9 times; Bharti’s India telecom business: 9.2 times.