Reliance Jio IPO Set for 2026: Tariff Hike Expectations and Execution Risks Ahead
The biggest moment for India’s telecom sector is going to come when Reliance Jio IPO will enter the market in 2026. Reliance Industries Chairman Mukesh Ambani has made it clear during the AGM that Jio will complete its listing plan by the first half of 2026. This IPO will not only be the biggest in India, but is also expected to be a landmark event for global investors. But along with this, analysts are also highlighting some execution risks and valuation concerns.
Reliance Jio IPO 2026: Preparations for a Record-Breaking Listing
Reliance Jio, which is India’s largest telecom operator today, is set to set a new record through its IPO. After the announcement of the AGM, a lot of discussions started in the market regarding valuation gains, tariff hike strategies and demerger options. Analysts believe that the IPO will be a big value unlocking moment, but if the company had taken the demerger route, it would have been even more beneficial for the shareholders.
Antique Stock Broking analysts said that the AGM has further sharpened the value-unlock narrative of the Jio IPO. The brokerage highlighted three growth engines – Retail, RCPL/consumer brands and new AI subsidiary Reliance Intelligence. This clearly shows that Jio IPO 2026 will not be a play of a single segment but will represent an entire digital ecosystem.
Analysts’ Valuation and Tariff Hike Expectations
Antique Stock Broking has given Reliance Jio a valuation of $113 billion, which is based on 12x EV/EBITDA multiple. If churn is reducing and average revenue per user (ARPU) increases, then premium multiple can be sustained even after IPO. The brokerage has given a target of ₹1,640 per share while maintaining BUY rating on RIL which implies 21% upside.
On the other hand, JM Financial said that one more important thing comes out of the IPO timeline – the possibility of ~15% tariff hike in the telecom industry by the end of 2025. If this happens, it will be positive for both Reliance Jio and Bharti Airtel. Jio’s subscriber momentum is also strong, with the 5G user base crossing 220 million and overall subscribers reaching above 500 million.
Reliance Jio IPO 2026 and New Product Launches
During the AGM, Reliance not only showcased the IPO plan but also new products. These include Jio AI Cloud, Jio-PC and AI-powered wearables like JioFrames. The company’s focus is to connect every Indian household to broadband, digitize MSMEs and businesses and take its homegrown technology to global markets. All this creates a strong growth narrative for Jio IPO 2026.
Strong Base of Scale and Profitability
Jio Platforms reported a net profit of ₹7,110 crore in the June quarter, which is a 25% growth compared to last year. Revenue reached ₹41,054 crore which is a 19% jump, and EBITDA also increased by 24% to ₹18,135 crore. JioAirFiber is now adding more than 1 million homes every month, which further accelerates growth.
With over 500 million subscribers, Jio now has the second largest telecom base in the world after China Mobile. Reliance has a 66.3% stake in Jio Platforms, while Meta and Google have 10% and 7.7% stakes respectively. These strategic partnerships could further strengthen valuations at the time of the IPO.
Reliance Jio IPO Risks and Execution Concerns
Analysts believe the IPO will be a landmark event, but there are still some concerns. Antique Stock Broking has warned that aggressive timelines, especially in new energy businesses, could be a swing factor. If timelines are missed, both valuation and profitability could come under pressure.
Nuvama analysts have also cautioned that despite the IPO, RIL shareholders may get limited benefit due to the holding company discount. Meaning, there will be a risk of trading at a discount on Reliance stock even after the IPO.
Market Context and Global Positioning
If Reliance Jio IPO is launched in 2026, it will easily dwarf Hyundai Motor India’s 2024 ₹27,870 crore IPO. According to analysts’ estimates, Jio can raise ₹58,000–67,500 crore with just a 5% stake sale, which will be double the size of Hyundai’s IPO.
Mukesh Ambani has a clear vision of taking Jio to the level of global telecom giants. But in this journey, decisions like tariff hikes, capital allocation and listing structure will play a very critical role. Investors will closely watch whether Reliance Jio IPO 2026 will unlock true value or there will be a discount risk on RIL shares.
Disclaimer:
This article is written for informational purpose only. The views and analysis given in it are based on reports of market experts and brokerages. Readers are advised to take advice of their financial advisor before taking any investment decision.
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