Reliance Jio Poised for Growth Surge with 5G Expansion and Tech Innovation

Jefferies' report highlights Reliance Jio's strategic growth trajectory driven by rising telecom tariffs and expansion in home broadband. With an 18% and 21% CAGR in revenues and EBITDA expected over FY26-28, Jio's advanced tech and competitive edge in 5G make it a formidable player in the global market.

Reliance Jio is set for robust growth in the coming years, according to a Jefferies report. This growth is fueled by increasing telecom tariffs and the rapid expansion of its home broadband sector, particularly through Fixed Wireless Access (FWA).

The report forecasts an impressive 18% and 21% compound annual growth rate (CAGR) in revenues and EBITDA respectively from FY26 to FY28 for Jio. The report highlights Jio's strong positioning due to the rise in mobile tariffs and significant growth in its home broadband sector, driven by FWA. The brokerage firm has increased its target EV/EBITDA multiple to 15x, reflecting its confidence in Jio's superior growth outlook.

Jio's diverse technology ecosystem, spanning radios, network core, OSS/BSS systems, and FWA solutions, gives it a decisive competitive advantage. With relatively low global 5G penetration, Jio's cost-effective solutions can potentially dominate the USD 121 billion global telecom technology market, offering significant growth opportunities.

(With inputs from agencies.)