Jio IPO Could Lead to Re-Rating for Airtel

Reliance Jio, India’s largest telecom operator, is soon expected to go for IPO (Initial Public Offering). This is expected to take place in the first half of 2026, as confirmed by Reliance Industries CMD Mukesh Ambani. According to Jefferies, Reliance Jio IPO can trigger re-rating for Bharti Airtel. When Jio goes for IPO, it would most likely lead to the company going for tariff hikes. This is because the investors would definitely want the company to post improved EBITDA (earnings before interest tax, depreciation and amortisation). A tariff hike for the industry would be good not just for Jio, but also Airtel.

• Make Telecom Talk My Trusted Source
• 
• 

Read More – Ai+ NovaWatch Announced for India

Jefferies has raised the target price for Airtel to Rs 2,760, implying a 32% upside from the current levels. Jio Platforms Limited (JPL) remains the company with the largest subscriber base in India, and now focus towards monetisation would strengthen after the listing. Major shareholders such as Reliance, Google, Meta, and more expected to stay invested in the company.

The analysts at Jefferies suggest that Jio needs a 10-20% tariff hike in FY27 for its equity valuation to reach closer to Bharti Airtel’s and also deliver a double digit internal rate of return to existing private equity investors. Telcos have been raising tariffs every two years for the last few times. Since the last hike came in July 2024, the next is expected somewhere in 2026.

Read More – CMF To Bring New Headphone Pro and Watch 3 Pro to India Soon

A hike always leads to SIM consolidation in the short-term, however, aids the telcos in boosting their average revenue per user (ARPU) figures. After listing, Jio would need to continously post strong returns and increase monetisation avenues to keep the investors happy and interested. JPL is now spearheaded by Akash Ambani along with several experienced leaders such as Kiran Thomas, Mathew Oommen and more.