Reliance Jio, India's largest telecpm operator, has benefited from being able to offer UBR (Unlicensed Band Radio) using unlicensed spectrum. The telco's home broadband business has been growing rapidly, with more than one million users a month owing to the FWA (Fixed Wireless Access) services. Jio's FWA services are also being served using UBR. Jefferies said that, "We lower our ARPU assumptions by 1% and expect Jio's ARPU to rise at 11% CAGR to 272 over FY25-28, led by three tariff hikes of 10% each," in the third quarters of FY26, FY27, and FY28.
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Further, Jefferies said, "We expect Jio's margins to expand to 58% by FY28, led by operating leverage, driving a 21% CAGR in its Ebitda over FY25-28."
Reliance Jio reported its 5G user base at 234 million at the end of Q2 FY26. This is the highest for any telco in India, and the company is likely to improve margins on operations as 5G is monetised more directly from the consumers. As of now, 5G is being offered as an add-on with the 2GB daily data plans or plans that offer more than 2GB daily data. The telco's net profit for the quarter ending September 2025 stood at Rs 7,379 crore, up from Rs 6,539 crore a year earlier. The revenue from operations also went up by 14.6% YoY.
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Jio's ARPU stood at Rs 211.4 at the end of this quarter, which is also up from Rs 195.1 from a year ago. Jio's ARPU will not go up much from here without any tariff hikes. According to JP Morgan, the ARPU of the telco without any tariff hikes will stand at Rs 214 at the end of March quarter. The telco has also confirmed that the company will not hike the tariffs any time soon.
