Jio Q1: Brokerages spotlight strong net adds, FWA-led broadband gains; say APRU lift modest

New Delhi, Jul 21 (PTI) Reliance Jio turned in Q1 report card of robust subscriber addition and 5G user tally with strong traction seen in home broadband segment, though growth in average revenue per user was modest, according to analysts.

The big takeaways from the April-June quarter numbers for them were better-than-expected revenue growth, a sharp rise in net adds to about 10 million post-tariff-hike digestion, and 5G users surpassing 210 million.

"Overall, healthy results with strong subscriber addition and EBITDA (earnings before interest, taxes, depreciation, and amortisation) expansion, despite flattish ARPUs," UBS said in its report.

On 5G, Jio is the largest operator globally in terms of data traffic, UBS said, citing the subscriber base of 210 plus million users.

"AirFiber continues to see strong demand and is the largest FWA (Fixed Wireless Access) service globally with 82 per cent market share in India and a subscriber base of 7.4 million," it said.

In Q1FY26, Jio added 2.6 million home subscribers (1.8 million using FWA) with fixed broadband base now reaching 20 million (7.4 million from AirFiber), it further pointed out.

JP Morgan said that the revenue was up a "stronger-than-expected" 3 per cent sequentially led by 1.2 per cent growth in ARPU, addition of 7.3 million wireless subscribers and 2.6 million fixed subscribers in the quarter.

For Jio, Q1 (April-June) was a robust quarter with strong net adds and "modest" ARPU (average revenue per user) growth, it said.

Citing Jio’s ARPU rise of 1.2 per cent quarter on quarter to Rs 209, it observed, the increase was a partial flow-through of tariff hikes that should end this quarter.

"Jio has historically taken the longest to show the full impact of tariff increases due to a high proportion of users on 3m/6m/annual plans that have queued multiple periods of plans," JP Morgan note said.

Notably, Jefferies has raised its FY25-27 subscriber estimates by up to two per cent to pick up mobile subscribers as well as higher FWA subscribers. It expects RJio's mobile subscribers to reach 517 million and home broadband subscribers to reach 38 million by Mar-27.

"Reliance Jio's 1Q results missed estimates due to lower-than-expected ARPUs and higher depreciation and interest costs. Subscriber additions and margins surprised positively and should support revenue and earnings growth in the coming quarters," the Jefferies report said.

Jio Platforms - the entity that houses Reliance Industries' telecom and digital businesses - on Friday reported a net profit of Rs 7,110 crore for the June quarter, a nearly 25 per cent rise over the year-ago period, its numbers bolstered by customer adds, improved realisations per user and data traffic growth.

Revenue from operations jumped 19 per cent to Rs 35,032 crore, driven by strong subscriber momentum across mobility and homes, increased customer engagement and growth in the digital services business, according to the earnings statement by parent Reliance Industries.

Quarterly Earnings Before Interest, Taxes, Depreciation, and Amortization or EBITDA at Rs 18,135 crore was up 23.9 per cent year-on-year. Average Revenue Per User - a key vector - increased to Rs 208.8 against Rs 206.2 in the March quarter and Rs 181.7 in the June quarter of FY25.

Reliance Jio Infocomm - the telecom unit - posted a 23.2 per cent increase in net profit at Rs 6,711 crore in Q1FY26, while revenue from operations grew 16.6 per cent to Rs 30,882 crore. PTI MBI MR