Reliance Jio Q1 Results Review: Healthy Ebitda Offset By Steep Rise In Interest Costs — Dolat Capital

Reliance Jio gained robust 9.9 million subscribers following the completion of SIM consolidation (trailing 12 months 8.4 million) post-tariff hike. However, persistent high capex, healthy margin expansion but steep rise in interest costs remain a concern..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Reliance Jio Infocomm Ltd.’s Q1 FY26 results were in-line. revenue /Ebitda/adjusted profit after tax grew +16.6/19.9/23.3% YoY & 2.9/5.3/1.1% QoQ driven by tariff hike in early July 2024. The company gained robust 9.9mn subscribers following the completion of SIM consolidation (trailing 12 months 8.4 million) post-tariff hike. However, persistent high capex, healthy margin expansion but steep rise in interest costs remain a concern. Jio’s strong position in 4G/5G combined with Vodafone Idea’s payout obligations, implies consistent tariff hikes for the industry and/or duopoly, benefiting both Jio and Bharti Airtel Ltd. We have broadly maintained our estimate for FY26-27. .Key triggers for the future are- tariff hikes,higher monetization of 5G subs,lower capex/robust free cash flow anda potential public listing. Our Enterprise/Equity value for Jio (per share of RIL for its effective ~65% stake in Jio) is unchanged at Rs 482/449 @ 11x FY27E EV/E..Click on the attachment to read the full report:.'Add' Reliance Industries Shares Maintains Dolat Capital Post Q1 Results — Check Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Reliance Jio Q1 Results Review: Healthy Ebitda Offset By Steep Rise In Interest Costs — Dolat Capital

Steep capex, trivial free-cash-flow and high debt are key challenges for Jio, adds Dolat Capital.

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