Jio Platforms share price extended its post-listing rally for a second consecutive session on Thursday, October 29, rising as much as 5.12% to hit an intraday high of Rs 1,490 on the BSE.
The stock has now gained 9.72% from its listing price of Rs 1,358, taking its gains to 33.15% over the initial public offering (IPO) price of Rs 1,119 (upper band).
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At 10:38 am, Jio Platforms shares were trading 3.9% higher at Rs 1,472.60 apiece. In comparison, the BSE Sensex was up 0.71% at 73,764.
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The continued rally comes a day after Jio Platforms made a strong stock market debut on October 28, listing at Rs 1,358 per share on the BSE and NSE, a premium of 21.36% over its IPO issue price.
The post-listing gains have also helped Jio Platforms overtake Bharti Airtel to become India's second-largest listed company by market capitalisation, behind Reliance Industries (RIL). Jio Platforms' market capitalisation stood at Rs 13,52,208.04 crore at the last check.
Jio Platforms Shares Hit Rs 1,490: Trading Volumes Remain Strong
Trading activity in Jio Platforms shares remained elevated on Thursday.
On the BSE alone, 31.36 lakh shares worth Rs 461.33 crore had changed hands. On the NSE, 215.61 lakh shares worth Rs 3,172.65 crore had been traded.
The stock's continued advance follows its strong debut, when the shares listed at Rs 1,358 apiece, comfortably above the issue price of Rs 1,119.
Jio Platforms Stock: All 3 Brokerage Targets Hit
The post-listing rally has already taken Jio Platforms shares above the initial target prices set by the three brokerages that initiated coverage on the company with 'Buy' ratings.
Nomura initiated coverage with a target price of Rs 1,340, while Motilal Oswal set a target of Rs 1,350. Elara Capital initiated coverage with a target price of Rs 1,367.
Jio Platforms' listing-day intraday high of Rs 1,375 exceeded all three targets. The stock's subsequent rise to Rs 1,490 has widened the gap between its current market price and these initial brokerage estimates.
Nomura's valuation is based on 12 times its December 2028 forecast EBITDA. Motilal Oswal and Elara Capital use an enterprise value-to-EBITDA multiple of 11.5 times estimated FY29 EBITDA, with Motilal Oswal also citing a discounted cash flow-backed valuation.
The focus now shifts to whether the company's earnings growth, cash generation and digital services expansion can support its valuation as trading continues after the listing.
Tariff Hikes Could Drive Jio Platforms' Next Growth Phase
Brokerages Nomura, Motilal Oswal and Elara Capital believe Jio Platforms' next growth phase will depend on its ability to convert its large subscriber base into higher average revenue per user (ARPU), stronger cash flows and a larger digital services business.
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Tariff increases could provide an immediate boost to revenue. Nomura expects an industry-wide tariff hike of around 15% in November-December 2026, while Motilal Oswal expects a similar increase from March 2027.
Nomura also sees scope for Jio to focus on tiered pricing rather than flat unlimited-data bundles, alongside premiumisation through 5G network slicing.
The brokerage estimates that India's mobile market could expand from Rs 2.9 trillion in FY26 to Rs 5.2 trillion in FY31. It expects Jio Platforms to deliver an EBITDA compound annual growth rate (CAGR) of around 13.5% over FY26-FY29.
Motilal Oswal projects a 14% CAGR in consolidated revenue, 15% in reported EBITDA and 20% in profit after tax over the same period.
Home Broadband And Digital Services Offer Further Growth Opportunities
Beyond tariff hikes, home broadband expansion and digital services are expected to support Jio Platforms' growth.
Nomura said Jio had 28.6 million fixed broadband subscribers in June 2026, compared with Airtel's 14.7 million. With home broadband penetration at around 21% in India, against a global average of more than 70%, the brokerage sees an addressable market of over 300 million households.
Motilal Oswal expects Jio to account for around 73% of incremental net additions in the home broadband industry over FY26-FY29. It also expects the company's revenue market share in wireless services to increase by around 100 basis points to 43.3% over the period.
Elara Capital sees digital services as another key growth driver. While the segment contributes around 12% of revenue and 5% of EBITDA in FY27 estimates, the brokerage expects digital services revenue to double and EBITDA to triple by FY30, growing at twice the pace of the core telecom business.
The opportunity includes consumer services such as entertainment, productivity and the Internet of Things, alongside enterprise offerings such as cloud, communications and managed services.
Lower Capital Expenditure Could Improve Cash Flows
Brokerages also expect Jio Platforms' cash generation to improve as its investment cycle eases.
Nomura said capital expenditure declined to around 23% of revenue in FY26 from approximately 35% in FY25. It expects the company to become net debt-free by FY29.
Motilal Oswal estimates cumulative free cash flow of Rs 1.46 trillion over FY26-FY29 and also expects Jio Platforms to reach a net cash position by FY29.
Jio's proprietary 5G and unlicensed-band radio technologies could provide another growth avenue through international licensing partnerships. Nomura said the company is initially targeting up to 12 strategic partnerships, potentially reaching 1.5 billion users across the US, Germany, South America, East Asia and Africa.
What Could Investors Watch Next?
Jio Platforms shares have extended their gains for a second session, with the stock now trading above the initial target prices set by Nomura, Motilal Oswal and Elara Capital.
The next test will be whether tariff increases, home broadband expansion, digital services and lower capital expenditure translate into the earnings and cash-flow growth expected by brokerages.
Nomura has flagged delays or smaller-than-expected tariff increases, as well as higher handset and equipment costs, as downside risks.
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