Centrum values the company at close to ₹12 lakh crore, based on an EV/EBITDA multiple, which is enterprise value divided by earnings before interest, tax, depreciation and amortisation, of around 13 times projected financial year 2027-28 (FY28) earnings. Jio has close to 530 million customers, with average revenue per user (ARPU) at about ₹240 a month.
“At the valuation of 11.5 lakh crore, it would be fairly attractive for the investors to put in money,” said Piyush Pandey, Senior Vice President at Centrum India.
He said the current valuation already factors in a tariff increase expected later this year. “It’s already factoring in a tariff hike of close to around 12% by November-December,” Pandey said.
Over the next five years. he expects the share of enterprise services, Internet of Things (IoT), cloud and fixed broadband in Jio’s revenue to climb to 15–20% from around 10% now as these businesses scale.
The IPO itself is structured as a fresh issue of 2.27 crore shares, with no offer-for-sale (OFS) component.
Pandey expects both Jio and Bharti Airtel to dominate the Indian telecom market, together holding 85–90% market share within five years. At that point, he said, ARPU growth becomes the main driver of earnings, since customer additions are likely to slow or plateau.
Pandey also pointed out that Jio’s EBITDA minus the capital expenditure doubled from under ₹20,000 crore in 2024-25 (FY25) to ₹42,000 crore in 2025-26 (FY26).
He said this trend should continue as 5G-related capital expenditure moderates. “Free cash flow would definitely increase since most of the CapEx is behind,” Pandey said, adding that the company may use the additional cash for higher dividends or acquisitions.
For the full interview, watch the accompanying video
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