Reliance Jio Poised for Explosive Growth Amidst Telecom Renaissance

In a bullish forecast, Jefferies has painted a promising picture for Reliance Jio, one of India's telecom titans, anticipating robust growth over the coming years. The brokerage firm expects Jio to achieve an 18% compound annual growth rate (CAGR) in revenues and 21% in EBITDA from FY26-28, fueled by increased telecom tariffs and the rapid expansion of its home broadband segment, especially through Fixed Wireless Access (FWA).

The report underscores Jio's substantial growth prospects, driven by the scaling of its enterprise business and monetization of its technological advancements. Notably, Jefferies has raised Jio's target EV/EBITDA multiple to 15x, reflecting a premium over its competitor Bharti Airtel, due to its favorable growth outlook. The enterprise value (EV) for Jio has been increased to USD 180 billion, with a projection set for December 2026.

Jio's technological ecosystem, integrating radios, network infrastructure, and FWA solutions, offers a competitive advantage, especially in a global market where 5G penetration is still emerging. The company's investments in technology have resulted in substantial increases in patent activity, enhancing its position in shaping future connectivity standards. With ongoing developments in AI and open digital architectures, Jio aims to optimize network operations and capture a larger market share amidst the global telecom evolution.