Jio Platforms IPO: Motilal Oswal Sees 21% Upside, Sets ₹1,350 Target Price

Jio Platforms has received a positive assessment from brokerage firm Motilal Oswal following its stock market debut on October 28. The brokerage initiated coverage with a Buy rating and set a target price of ₹1,350 per share. Compared with the reported IPO issue price of ₹1,119, the target suggests a potential upside of approximately 21%. Nomura has also reportedly expressed a positive outlook, setting a target price of ₹1,340 per share. These targets represent brokerage estimates, not guaranteed returns.

Motilal Oswal expects Jio Platforms to expand beyond connectivity services by growing its digital business, including cloud services, enterprise communications, the Internet of Things, managed services and international partnerships involving 5G and UBR technologies. For FY26 to FY29, the brokerage projects revenue to grow at a compound annual growth rate (CAGR) of 14%, EBITDA at 15% and profit after tax at 20%. Its assumptions include continued subscriber additions, higher home broadband subscriptions, increased digital-platform revenue and a potential tariff hike of around 15% from March 2027. The brokerage also estimates that the company could generate approximately ₹1.46 lakh crore in free cash flow between FY26 and FY29 and potentially reach a net cash position by FY29. In an optimistic scenario, revenue growth could reach 16% CAGR and EBITDA growth 18.5%, supported by stronger home broadband growth, higher average revenue per user and improved margins. The report also notes that Jio Platforms' reported ₹30,213 crore IPO attracted bids worth approximately ₹7.4 lakh crore from anchor and other investors combined.