S&P Confirms RIL's Credit Rating at 'A-' Citing Jio Listing and Profit Growth

Jio Platforms presented its first post-listing results, noting a 13.7% rise in consolidated net profit to ₹8,389 crore for the September quarter of 2026. This growth is attributed to an increase in subscribers, higher revenue per user, and stable development of digital services.

According to regulatory filings, the company's consolidated operating revenue for the reporting quarter grew by 11.4%, reaching ₹40,475 crore. This report is the first since the successful listing of the company's shares on the stock exchange this week, and the results briefing was the first opportunity for Managing Director Akash Ambani to address investors during the quarterly review.

Commenting on the figures, Ambani emphasized that the current quarter's results reflect the power of the company's 5G network, as well as the expansion of broadband access and digital services coverage. He stated plans to continue building potential in satellite communications, 6G intellectual property, and integrating artificial intelligence into core voice and packet services to create long-term value for all stakeholders.

During the results presentation, Ambani outlined Jio's growth strategy, which includes international business models and opportunities in the enterprise segment, leveraging the technology stack and infrastructure built by the company. He noted multiple growth drivers in mobile, home, enterprise, and international markets, asserting that the company proves this at scale, possessing a clear path to growth and profitability supported by a very strong balance sheet even before IPO proceeds.

Net profit attributable to owners stood at ₹8,389 crore in the concluded quarter, compared to ₹7,379 crore a year earlier. On a sequential basis, consolidated net profit grew by 8% compared to ₹7,765 crore in the June quarter, and operating revenue increased by 3.3% compared to ₹39,173 crore.

Ambani pointed out that the enterprise segment will be a significant growth opportunity, where the company intends to actively invest and attract users to its network. He added that small and medium enterprises in the country represent a unique chance. The company will approach international markets selectively, not selling its patented stacks as hardware commissions or software as a service. Instead, the proposed business model involves partnering with clients as a managed service provider.

The company's net debt decreased by 78.6%, amounting to ₹8,822 crore in the reporting quarter compared to ₹41,161 crore a year ago. Jio Platforms attributed the revenue growth to attracting new subscribers, increasing the average revenue per user (ARPU), and healthy growth in digital services.

Connection revenue grew by 11%, while digital services showed a 16% increase during the quarter. The company's total subscriber base increased by 7.1%, reaching 54.24 crore people from 50.64 crore a year earlier, with 91 lakh subscribers added in September. Monthly ARPU rose to ₹218.8 from ₹211.4 a year ago and from ₹215.6 in the June quarter; average monthly data consumption per user increased by 14.2% to 44.2 GB.

Furthermore, Jio crossed the milestone of 30 crore 5G subscribers during the quarter, adding 6.6 crore 5G users in the last 12 months. The JPL press release notes that customer engagement remained high, with 5G now accounting for nearly 56% of total wireless traffic. The fixed broadband subscriber base reached 3 crore. The release also indicates that Jio AirFiber, with a total base of 15.1 million subscribers, accounted for over 75% of Jio's fixed broadband growth in the last 12 months. Total data throughput grew by 22.1% year-on-year to 71.3 billion GB for the quarter.

This is the first announcement of results from the digital and telecommunications company following its major debut on the stock market this week, when the company's shares closed almost 27% above its issue price of ₹1,119. This transformed the telecom and digital technology startup from 2016 into the second-largest domestic company by market capitalization in 10 years. The company's IPO raised ₹30,188 crore, of which ₹27,500 crore was used to prepay certain external commercial loans of its subsidiary, Reliance Jio Infocomm.

Addressing the JPL conference, Ambani stated that Jio Platforms' blockbuster IPO surpassed records across all investor categories, despite challenging market conditions and foreign investment outflows. He expressed confidence that the company will create even greater value in the next decade than it did in the first ten years. He reiterated the message from his NSE speech, saying: 'Never let today's achievements limit tomorrow's ambitions, and that is what we want to push forward with Jio.'

Jio Platforms CEO Pankaj Punwar stated that the company does not bundle services in its offering but creates new markets and value for customers, thereby increasing the company's wallet share.

Reliance Retail Ventures Ltd (RRVL), the country's leading retailer, continues to expand its network of dark stores, improve delivery speed, and deepen its presence in smaller towns while maintaining a close focus on unit economics and profitability, a company senior executive reported on Friday.

Reliance Retail's CFO, Dinesh Taluja, stated during a post-earnings call that the company prioritizes sustainable growth by investing in dark stores and customer acquisition, with margins expected to positively impact profitability starting from the next fiscal year according to the roadmap.

The company continues to scale up quick commerce operations and develops capabilities to respond to changing market conditions, focusing particularly on creating a hyperlocal network that covers the supply chain and technology.

Taluja noted: 'We are currently investing to build scale in the online business,' adding that the company 'is investing in capabilities to improve our accessibility, delivery speed, and reliability.'

Nevertheless, he also emphasized that growth in e-commerce and quick commerce will be executed with 'a balanced unit economics.' The company maintains a strict focus on profitability, including closing large underperforming stores while simultaneously expanding its dark store network.

In the grocery retail segment, where online revenue grew by 42% in Q2 of FY2027, there is a note of 'scaling the hyperlocal and revenue-visible online segment.'

Reliance Retail added 303 new stores to its retail network, resulting in a net reduction of 222 stores after accounting for the closure of unproductive locations. The company demonstrates a 'ruthless focus' on profitability by closing large stores that are not delivering results.

He stressed: 'The focus will be on unit economics, not just vanity metrics like order volume or reach. Growth will be disciplined, provided the economics make sense. Where the economics don't make sense, we won't grow, and we will continue to expand our dark store network.'

Unlike several competitors primarily focused on online sales and heavily investing in building autonomous infrastructure, Reliance Retail has an advantage in leveraging its existing physical store network to support online deliveries.

The company operates in over 5,000 stores and more than 1,000 cities, giving it a broader omnichannel reach compared to competitors concentrated mainly in the top 100 cities.

Taluja noted that the company is also rapidly growing in smaller towns where 'there is no competition... There is consumer demand there, and our additional costs are much lower.'

Taluja explained that Reliance Retail is observing rapid growth in small towns where the demand for online food delivery services remains largely untapped, and additional infrastructure costs are lower due to the ability to utilize the existing retail network.

The company also reported improvements in key operational metrics. He stated: 'Our average order values have increased significantly. The percentage of fully fulfilled orders has risen. Average delivery time has substantially decreased over the last four quarters. So everything is moving in the right direction, and investments are also benefiting net profit.'

Reliance Retail, which previously presented a three-year plan, has made significant progress. 'Looking at the growth of our JioMart and Omnichannel vertical, we manage the largest omnichannel network in the country, and this is reflected in the numbers. We achieved 42% growth in online grocery business. The share of online in the B2C retail market grew by 70 basis points.'

Taluja noted that the quick commerce segment remains highly competitive, with six players operating, leading to price pressure and customer acquisition investments. 'Our share has grown by 100 basis points, and we manage the largest store network. Look at our competitors; the next player is somewhere around 2,500 dark stores.'

Reliance Retail makes selective investments in margin, especially in metropolitan areas, to remain competitive and retain customers. 'The good news is that compared to other players who are actually incurring losses, we have a profitable core, and we are using it to fund the growth engines, which is the online growth engine, and we are still making money,' said Taluja.

The company is also focusing on increasing the utilization of its existing assets and leveraging its scale to increase margins, rather than relying on discount-based expansion. Reliance Retail plans to focus on scaling its JioMart platform in FY2027 before concentrating on profitability and value creation in FY2028 and FY2029.

The strategy includes expanding JioMart's reach across various platforms and strengthening its omnichannel presence, as well as improving product availability, delivery speed, and reliability. In FY2028 and FY2029, the focus will shift to monetizing the expanded business by increasing repeat purchases, average basket size, and customer lifetime value.

Thanks to the impressive market entry of Jio Platforms Ltd., investors have shown enthusiasm, paving the way for potential stock offerings from several of the country's largest private companies.

The massive demand for Jio shares indicates that investors are willing to commit significant capital to large deals, even amid a challenging situation in the Indian stock market, according to investment bankers. They noted that strong post-listing results could increase the confidence of future issuers in conducting major transactions.

Amrinder Singh, Head of Equity Capital Markets at SBI Capital Markets Ltd., stated that 'Jio's blockbuster debut helped restore investor confidence in large placements, especially among retail investors.' He added that given the active portfolio, which includes public sector undertakings, financial firms, and new ventures, the Indian primary market is expected to remain vibrant due to a combination of landmark offerings and disciplined pricing.

Currently, about 113 companies have received regulatory approval to list on Indian exchanges, while another 115 have submitted draft documentation. These include potentially multi-billion dollar deals from India's largest private enterprises and local subsidiaries of global corporations. Companies such as PhonePe Ltd., Pernod Ricard India Ltd., Hindustan Coca-Cola Beverages Pvt., MakeMyTrip Ltd., and Parle Products Pvt. are considering or preparing for a possible listing in India. Flipkart, backed by Walmart Inc., is also weighing a stock sale.

Furthermore, Tata Sons Pvt., the holding company of the Tata Group, has faced pressure regarding a listing, which could lead to landmark market events similar to Jio's success. Local media reported that billionaire Mukesh Ambani also plans to take Reliance Retail Ventures Ltd. public in the future.

Jio's Initial Public Offering attracted a record ₹30,200 crore ($3.1 billion) and was oversubscribed more than 22 times, drawing applications worth $78 billion. The shares rose by 27 percent on the first day of trading, surpassing Bharti Airtel Ltd. and becoming the second most valuable company in India by market capitalization.

Ramdeo Agrawal, Chairman of Motilal Oswal Financial Services Ltd., observed that 'Jio's debut as the second most valuable listed company in India with a market capitalization exceeding $100 billion highlights the growing depth and scale of the country's capital markets and may encourage more large companies to seek a public listing.'

Indian companies have already raised approximately $18.26 billion through IPOs this year, approaching the record high of $22.36 billion achieved last year. Besides Jio, the National Stock Exchange of India Ltd. completed an IPO worth about $2.4 billion, and other major issuers, including SBI Funds Management Ltd. and Manipal Health Enterprises Ltd., have also utilized this market.

The ability of investors to absorb these offerings may prompt peripheral companies awaiting listings to accelerate their plans, potentially keeping India among the world's most active new equity markets until 2027. Part of the impetus for the Jio deal was a regulatory change that allowed large issuers to dilute at least 2.5 percent of their share capital. This enables highly valued companies to raise funds in the market without overloading it.

Steven Richard Evans, Chairman of Red Lions Capital in Dubai, commented: 'Jio was the first serious test for all of this, and the test was passed brilliantly. I think you will see many other large groups queue up to use the same route.'