Fueling the market euphoria surrounding Dalal Street's mega debut of the year, leading domestic brokerage house Motilal Oswal Financial Services has initiated research coverage on Jio Platforms with a high-conviction 'Buy' recommendation. In its baseline assessment, the brokerage assigned a 12-month target price of ₹1,350 per share, representing a 21 percent premium over the company's IPO issue price of ₹1,119.
Even more striking is the brokerage's blue-sky valuation: under an accelerated bull-case scenario, Motilal Oswal projects the stock could surge by up to 51 percent to reach ₹1,690. The bullish endorsement closely follows Japanese investment bank Nomura's listing-day initiation at a target of ₹1,340, reinforcing institutional confidence that the telecom and digital powerhouse has entered a high-margin monetization phase anchored by subscriber dominance, cloud services, and structural cash generation.
Beyond Connectivity: 15% Tariff Hike and Digital Services to Drive Multi-Year Earnings
Motilal Oswal's thesis emphasizes that Jio Platforms has transitioned far beyond conventional cellular connectivity to become an integrated enterprise technology conglomerate. The company's expanding digital footprint now encompasses cloud infrastructure, Internet of Things (IoT) ecosystems, enterprise communication architecture, managed corporate services, and high-value international commercial agreements centered around proprietary 5G and Unified Broadband (UBR) technology suites.
Under standard baseline projections spanning fiscal years 2026 through 2029, the brokerage forecasts consolidated revenue to expand at a compound annual growth rate (CAGR) of 14 percent, reported EBITDA to climb at a 15 percent CAGR, and Profit Before Tax (PBT) to clock an impressive 20 percent annual growth rate. Key fundamental catalysts fueling this trajectory include steady gross subscriber additions, surging home broadband (HBB) penetration, and a projected 15 percent pan-network tariff hike anticipated around March 2027.
₹1.46-Lakh-Crore Cash Surge: Path to Zero Debt and 13x Bull-Case Valuation Multiple
A cornerstone of the brokerage's assessment is Jio Platforms' rapid post-5G capex transition. With nationwide standalone 5G rollouts largely finalized, disciplined capital expenditure combined with compounding operating profits is projected to generate a staggering ₹1.46 lakh crore in cumulative Free Cash Flow (FCF) between fiscal years 2026 and 2029. This unprecedented liquidity creation is expected to turn Jio Platforms into a net cash company by FY 2029.
In Motilal Oswal's optimistic bull scenario, revenue growth accelerates to 16 percent annually, driven by an 8 percent annual expansion in Average Revenue Per User (ARPU) and higher-than-expected broadband conversions. Operating leverage under this setup pushes annual EBITDA growth to 18.5 percent, aided by incremental margins widening to 67 percent alongside richer profitability across non-telecom enterprise verticals. Reflecting this operational velocity, Motilal Oswal applies a premium Enterprise Value to EBITDA (EV/EBITDA) multiple of 13 times FY2029 earnings in its bull framework—well above its baseline 11.5 times multiple—cementing Jio Platforms as a cornerstone compounder for long-term equity portfolios.
