RIL Shares Slide Ahead of Jio Platform IPO; Investors Might Be Counting Profits, Not the Excitement

Mumbai, October 14: Reliance Industries (RIL) is preparing for its biggest value-discovery event, but its stock is sliding instead of celebrating. RIL shares have fallen nearly 5 per cent in the last five sessions, 7 per cent over the past month and 26 per cent so far this year. 

Experts say the dip is not about the size of the proposed Jio Platforms IPO. They say investors are doing a harder sum: what Jio is worth, how much of it RIL shareholders can actually reach, and what profit sits behind the number. 

Why Is Reliance’s Share Price Declining? 

Market experts say Reliance shares may be witnessing this trend as investors focus more on the profits the company generates rather than the value that could be unlocked through Jio’s listing. Analysts believe the stock may react once concrete figures on Jio’s profitability become available. 

They also point to the performance of other businesses within the Reliance Group as a factor that could affect the stock. Analysts have highlighted concerns about refining margins, profitability in the petrochemicals business and the capital required to expand various businesses under Reliance. 

These factors could continue to weigh on the share price until there is greater clarity on the company’s profitability. 

Little Room for A Sharp Re-Rating 

Experts in the field say the price tag is the second hurdle for the IPO. They say Jio’s proposed valuation, at around 12 times forward EV/Ebitda, already carries a premium to Bharti Airtel’s India telecom business. In their view, that leaves limited room for a sharp re-rating on the back of the listing alone. 

They add that Jio’s average revenue per user, or ARPU, is lower than Airtel’s. Looking ahead, they say further tariff hikes and a push towards premium plans will be needed to lift earnings growth. 

The Profit Behind Jio 

The base for that test is in the draft prospectus filed with SEBI on June 19, 2026. For Fiscal 2026, Jio Platforms reported profit after tax of Rs 30,049 crore, up from Rs 26,109 crore a year earlier. EBITDA was Rs 76,255 crore at a margin of 51.91 per cent, and net cash flow from operating activities was Rs 77,556 crore. 

Experts say the question is whether this profit can keep growing. “Overall, the market wants stronger earnings growth, better cash flows and greater clarity on the IPO before assigning a higher valuation to Reliance,” Tiwari said. 

Part Of the Value May Already Be Priced In 

Analyst say the market may have moved early, since a large part of Jio’s potential value may already be reflected in RIL’s share price. In their view, that is one reason the stock is not rallying on the IPO news alone. 

Experts also say an IPO announcement by itself is not enough to move Reliance shares. They say investors are looking at the bigger picture: how the group’s core businesses are performing, where earnings are headed and how much value the Jio listing will actually unlock. 

What Investors Are Waiting For 

In short, experts say the listing may give Jio a price, but it will not by itself lift Reliance. Investors, they say, want stronger earnings growth, better cash flows, a clear listing structure and proof that Jio’s profit can keep rising before they pay more for the stock. 

Backgrounder: Jio Platforms IPO, What Abridged Draft Prospectus Says 

Jio Platforms Limited filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 19, 2026. This backgrounder is based only on the draft abridged prospectus that summarises the DRHP. Price band, issue size in rupees and bid dates are left blank in it. 

The Issue 

The IPO is a fresh issue of up to 27 crore equity shares of face value Rs 10 each, with no offer for sale. Shares are proposed to be listed on BSE and NSE. Seats are reserved for qualified institutional buyers, non-institutional investors, retail investors, eligible employees and eligible RIL shareholders. There are 19 book running lead managers, including Kotak Mahindra Capital, Morgan Stanley, BofA Securities, Axis Capital, Goldman Sachs and J.P. Morgan. KFin Technologies is the registrar. 

The net proceeds are meant for prepaying borrowings of the subsidiary Reliance Jio Infocomm Limited (RJIL) and for general corporate purposes. 

The Business 

Jio Platforms describes itself as a technology platform powered by its pan-India digital connectivity. As of March 31, 2026, Reliance Jio Infocomm Limited (RJIL) had 524.4 million customers. These customers can use the Jio network to access mobile and fixed-line broadband, entertainment, cloud gaming, smart home and AI services. 

Commercial customers can use Jio’s network for enterprise broadband, leased lines, cloud, IoT, managed Wi-Fi, private 5G and security services. Jio operates in a single reportable segment, as disclosed in its financial statements. The bulk of its business is conducted in India. 

Who Owns Jio? 

Reliance Industries owns 66.43% of Jio, equivalent to 5,937,841,645 shares. Its weighted average purchase price is Rs 89.58 per share. An affiliate of Meta Platforms holds the next-largest stake at 9.98%, followed by Google International with 7.73%. 

The Public Investment Fund of Saudi Arabia, an affiliate of KKR and an affiliate of Vista Equity each own 2.31%. Silver Lake, Mubadala, General Atlantic and the Abu Dhabi Investment Authority hold stakes ranging from 0.93% to 1.88%. Entities under TPG also hold shares in Jio. 

Some Key Numbers 

In FY26, Jio reported revenue from operations of Rs 1,46,885 crore, compared with Rs 1,28,218 crore in FY25. EBITDA stood at Rs 76,255 crore, up from Rs 64,170 crore in the previous financial year. This translated into an EBITDA margin of 51.91%. 

Net profit after tax stood at Rs 30,049 crore, compared with Rs 26,109 crore in FY25. Basic earnings per share (EPS) was Rs 33.63, while return on average net worth stood at 9.42%. 

Jio ended FY26 with borrowings of Rs 70,781 crore, down from Rs 73,060 crore in the previous year. Its net debt-to-EBITDA ratio declined from 0.71 times to 0.36 times. 

Source

• Jio Platforms draft abridged prospectus