Reliance Jio, India’s largest telecom operator, unveiled its third-quarter results today, showcasing a modest 3% quarter-on-quarter increase in net profit to reach ₹5,208 crore. While the headline figure indicates continued profitability, analysts were looking for a sharper bump, with the average estimate falling slightly above ₹5,228 crore.
However, Jio’s revenue from operations saw a more positive trajectory, climbing 2.5% to ₹25,368 crore compared to the previous quarter. This rise was primarily driven by strong data consumption on the network, which witnessed a year-on-year surge of 31.5%. Notably, Jio’s Average Revenue Per User (ARPU) remained flat at ₹181.7, reflecting a balance between subscriber mix upgrades and the impact of free data allowances on 5G plans.
“The continued expansion of our subscriber base, fuelled by the success of JioBharat phones and JioAirFiber services, has bolstered our digital services segment,” said Akash Ambani, Chairman of Reliance Jio, in a statement. He also highlighted the record-high gross revenue of ₹32,510 crore achieved in Q3, showcasing a 11.4% year-over-year rise.
Despite the flat ARPU, analysts believe Jio’s focus on affordability and network expansion in rural areas could pay off in the long run. The company’s JioAirFiber service, offering bundled home broadband and TV packages, has seen robust demand, particularly in Tier 3 and 4 towns. Additionally, the upcoming launch of affordable 5G smartphones and potential tariff hikes in the future might contribute to ARPU growth.
The Indian telecom market remains fiercely competitive, with rivals Bharti Airtel and Vodafone Idea continuously vying for market share. While Jio maintains its lead with over 400 million subscribers, maintaining profitability and driving ARPU growth will be crucial for its future dominance. The coming quarters will be critical for Jio to capitalize on its data-driven strategy and leverage its expanding fiber network to solidify its position in the ever-evolving Indian telecom landscape.
