Jio to Witness Gains From July 2024 Tariff Hikes for 2 More Qtrs

RELIANCE INDUSTRIES’ TELECOM arm Reliance Jio is expected to continue seeing flow-through of the July 2024 tariff hikes in its average revenue per user (ARPU) till Q2FY26, as its customers on longer duration packs complete the recharge cycle, analysts said.

- URVI MALVANIA

However, there is less visibility on the telco's incremental margin growth, they added, since it has seen flat to marginal growth in Ebitda margin over the past few quarters, despite subscribers and ARPU growth.

Jio's ARPU grew 1.43% sequentially at ₹206.3, ahead of analyst estimates of ₹205, on the back of the flow-through of past tariff hikes.

"Jio has historically taken the longest to show the full impact of tariff increases due to a high proportion of users on 3-month/6-month/annual plans," an analyst from JP Morgan said.

ARPU is also expected to be buoyed by the growth in home broadband footprint, which has higher ARPU than mobile business, analysts added.