Jio Platforms Q3 Preview: Monetization Takes Center Stage
Reliance Jio Infocomm is entering a significant transition period. The telecom giant is shifting its focus from aggressive network expansion to monetization and cash flow generation. This strategic pivot comes as its parent company, Jio Platforms, prepares for a potential stock market listing in mid-2026.
Analysts view the December quarter as a consolidation phase. They anticipate steady subscriber additions and gradual improvement in average revenue per user. The rollout of paid 5G services, particularly fixed wireless access, is expected to drive this progress.
Financial Expectations for Q3FY26
Jio Platforms will report its quarterly results on Friday, January 16. Morgan Stanley projects a 2.7% sequential increase in operational revenue. This would bring the total to approximately ₹37,295 crore. Year-on-year growth is estimated at 12.8%.
The standalone telecom arm, Reliance Jio Infocomm, shows similar trends. Four brokerage firms predict a 2.5% quarter-on-quarter revenue rise to ₹32,650 crore. Net profit is expected to reach ₹7,111 crore, representing a 2% sequential increase.
Growth faces some constraints. Higher finance costs from previous 5G investments and increased depreciation expenses are limiting factors. These elements temper what could otherwise be stronger profit expansion.
Subscriber Growth and ARPU Trends
Average revenue per user should see organic improvement. This stems from higher data consumption and favorable subscriber migration patterns. More users are upgrading from 2G to 4G and 5G networks while moving to higher data plans.
Without major tariff interventions, ARPU is projected to grow modestly. Estimates suggest a 0.6-1.0% sequential increase to around ₹213.5 for the December quarter.
Jefferies highlighted Jio's impressive 5G adoption rates. The company has 234 million 5G subscribers, representing 48% of its mobile user base. This marks a 38% year-on-year growth. Jio is actively encouraging high-data users to transition to 5G by including it in all plans with 2GB daily data allowances.
Analysts expect Jio to add 6.5-7 million new subscribers during October-December. This would push the total user base to approximately 513 million.
Fixed Wireless Access and Home Broadband
Fixed wireless access is becoming a key monetization channel for 5G. Jio has established clear leadership in this segment. The company was the first to scale up its 5G FWA offering and commercialize unlicensed band radio technology last year.
This UBR technology functions like a radio station. It transmits internet wirelessly from a central tower antenna to multiple buildings simultaneously. As of November 2025, Jio's home broadband subscriber base reached 24.4 million. This includes 13.6 million fiber-to-the-home users, 7.6 million 5G FWA subscribers, and 3.2 million UBR technology users.
Digital Services Expansion
While telecom remains the revenue backbone, non-connectivity digital services are gaining importance. This segment includes managed technology services, cloud solutions, bundled content, and devices.
BNP Paribas notes that increasing adoption of digital services creates differentiation opportunities. Jio's bundling of Google AI Pro serves as a current example. These services represent potential monetization avenues in the medium term.
Non-connectivity revenues reached ₹14,100 crore in FY25. They are annualizing over ₹17,000 crore in FY26. This represents 12% of Jio Platforms' consolidated revenues, up from 8% just two years ago.
The company continues to focus on IoT and artificial intelligence offerings. Jio PC converts televisions into AI-enabled computers. The company also discussed launching Jio Frame in August. This smart glass features a multilingual AI voice assistant and camera capabilities.
UBS summarized the current quarter perspective in a January 7 note. "While 2026/FY27 could be a critical year for the sector given the impending IPO of Jio and possible final decision on government relief, we expect Q3FY26 results to be largely uneventful in the absence of meaningful price intervention."
The transition from network building to monetization represents Jio's new strategic direction. All eyes are on how effectively the company can convert its massive 5G infrastructure into sustainable revenue streams.
