Jio Platforms shares surge over 28% in first three trading sessions, brokerages remain bullish

Jio Platforms' shares closed at Rs 1,435 on Friday, extending a rally that has lifted the stock more than 28% in its first three trading days since the Wednesday debut at Rs 1,359, a 21.36% premium to the IPO price. The listing valued the company at roughly Rs 12.5 lakh crore, making it India's second-largest listed firm by market capitalisation, ahead of rival Bharti Airtel.

Investor demand was strong, with the IPO fully subscribed within 100 minutes and the qualified institutional buyer tranche subscribed 70.55 times. By the end of the third day, overall subscription stood at 22.2 times the shares on offer.

Japanese brokerage Nomura initiated coverage with a Buy rating and a target price of Rs 1,340, noting that Jio's 5G coverage drives data usage per subscriber 27% higher than Airtel's and that its churn rate of 1.6% is the lowest among peers. The firm projects the company will become debt-free by fiscal year 2029 and expects capital expenditure to fall to about 23% of revenue in FY26, improving free cash flow.

Domestic broker Motilal Oswal also gave a Buy rating, setting a target of Rs 1,350 and describing Jio as a “gateway to digital India.” The brokerage says Jio is valued on par with Bharti Airtel’s Indian business and could command a premium due to market leadership, tariff influence and a free float of less than 3%, though earnings estimates remain sensitive to wireless ARPU growth.

Dolat Capital assigned an Accumulate rating with a target of Rs 1,435, highlighting a shift toward an integrated telecom-and-technology model. It forecasts revenue, EBITDA and adjusted profit to grow at compound annual rates of 13%, 15% and 21% respectively between FY26 and FY29, driven by tariff hikes, 5G monetisation, broadband expansion and enterprise services.

Elara Capital issued a Buy rating, expecting mobility to stay the main revenue driver while forecasting a 12-15% tariff hike in the second half of FY27. The brokerage projects subscriber additions to grow at a 3% CAGR through FY29, with ARPU rising from Rs 214 in FY26 to Rs 257 in FY29, supported by affordable plans, network breadth and low churn.

All four brokerages cite Jio's extensive 5G network, low churn, and expanding digital infrastructure as key factors underpinning the stock’s strong early performance.