Jio Platforms races past brokerages’ 12-month targets on debut

Jio Platforms has taken just one trading session to race past the 12-month price targets set by some of the leading brokerages. The stock’s stellar market debut on Wednesday saw it close at Rs 1,419, up nearly 27% from its issue price of Rs 1,119 and comfortably above the targets set by Nomura, Motilal Oswal Financial Services and Elara Capital.

All three brokerages initiated coverage with a ‘Buy’ rating, betting on higher average revenue per user (ARPU), tariff hikes, expansion in home broadband and new revenue streams from digital services and international technology licensing.

The sharp listing-day rally, however, has already taken the stock 3.8–5.9% above their 12-month price targets, raising questions about how much of Jio’s growth potential is already reflected in its valuation.

Nomura, which initiated coverage on Wednesday with a target price of Rs 1,340, had projected an upside of nearly 20% from the issue price. The brokerage expects Jio to leverage its high data consumption per subscriber and low customer churn to drive ARPU growth. An anticipated industry-wide tariff hike in November–December 2026 could provide an immediate earnings trigger.

Nomura also identified home broadband expansion, international licensing opportunities for Jio’s proprietary unlicensed band radio (UBR) technology and declining capital expenditure as key growth drivers.

Motilal Oswal Financial Services (MOFSL), which set a target price of Rs 1,350, expects Jio to consolidate its leadership in wireless services. It projects a 100-basis-point increase in the company’s revenue market share between FY26 and FY29, alongside Jio accounting for 73% of incremental industry subscriber additions in home broadband during the period.

The brokerage also sees significant opportunities beyond traditional connectivity services.

“Scaling up its digital platforms, including cloud, enterprise communications, internet of things (IoT), and managed services, along with international tie-ups for its 5G/UBR technology, will offer the next leg of growth beyond the connectivity business,” MOFSL said.

Elara Capital, which assigned the highest target price among the three at Rs 1,367, is particularly bullish on Jio’s emerging digital services business.

The brokerage believes Jio is leveraging its affordable data offerings and extensive telecom network to build a large-scale digital products and services ecosystem catering to consumers and enterprises.

Elara expects digital services revenue to double by FY30, expanding at twice the pace of the telecom business and emerging as the company’s biggest growth driver. Meanwhile, Jio’s telecom subscriber base is projected to grow at 3% annually between FY26 and FY29, supported by affordable tariffs, extensive network coverage and low churn.