Archive · 9 Dec 2025
Jio IPO to Boost Telecom Sector
Jio, a big telecom company, is planning to go public in early 2026.
This is expected to make things better for other telecom companies like Bharti Airtel and Vodafone Idea.
The prices people pay for phone services (ARPU) are expected to go up by about 12% each year until 2028.
This is because Jio needs to make back the money it spent on 5G, and the government wants to keep the number of big telecom companies stable.
The brokerage firm JM Financial thinks this will help all telecom companies make more money.
They also think that the way people pay for phone services might change, so that people who use more data pay more.
This could help the companies make even more money in the future.
Jio's IPO targeted for the first half of 2026 is expected to strengthen the tariff environment and boost ARPU growth in the telecom sector.
JM Financial projects a 12% CAGR in ARPU from FY25 to FY28, driven by tariff hikes and premiumisation initiatives.
Bharti Airtel and Jio's free cash flow is expected to increase significantly from FY26 to FY28.
The brokerage maintains a positive stance on Bharti Airtel, Bharti Hexacom, and Jio, with target prices set for each.
A structural repair of the tariff architecture and a shift towards a 'pay-as-you-use' model are expected to aid long-term ARPU growth.
- Who
- JM Financial, Bharti Airtel, Vodafone Idea, Jio, Tata Communications, Indus Towers
- What
- Jio's upcoming IPO and its impact on the telecom sector
- When
- IPO targeted for the first half of 2026
- Where
- India
- Why
- To justify 5G capital spend and strengthen tariff environment
- Jio IPO Target
- First half of 2026
- Expected ARPU Growth
- 12% CAGR (FY25-28)
- Bharti Airtel Target Price
- Rs 2,460
- Vodafone Idea Target Price
- Rs 11
- Jio's FY28 EV/Ebitda
- 12.4 times
- Projected ARPU by FY28
- Rs 270-300
- 5G Penetration
- 45%
- Monthly Data Consumption
- 32GB