Jio Platforms Q2 Results: Profit Rises 13.7%, Margins Improve

Jio Platforms reported an 11.4% increase in revenue and a 13.7% rise in net profit in Q2 FY27. A larger customer base, higher spending per user and growth in digital services supported the performance, while improved operating margins helped profit grow faster than revenue.

But the results go beyond customer additions. Home broadband expanded sharply and net debt declined, even as higher finance costs absorbed part of the improvement in operating earnings. Here is what the quarter tells investors about Jio’s growth and profitability.

Jio Platforms Q2 Results at a Glance

EBITDA measures earnings before interest, tax, depreciation and amortisation. It helps explain how the business performed before financing costs, taxes and certain asset expenses.

Why Operating Profit Grew Faster Than Revenue

Jio’s revenue from operations increased to ₹40,475 crore, while EBITDA rose to ₹21,879 crore. Its EBITDA margin improved from 51.6% to 54.1%.

This means that for every ₹100 of revenue, Jio generated approximately ₹54.10 in EBITDA, compared with ₹51.60 a year earlier. A greater share of its revenue was therefore retained as operating earnings.

A telecom network requires substantial spending on infrastructure and technology. As more customers use that network and revenue grows, some existing costs can be spread across a larger business.

The margin improvement suggests that Jio is benefiting from this scale. For investors, the next question is whether it can maintain that improvement while continuing to invest in network capacity and new services.

More Customers and Higher Spending Supported Growth

Jio’s total customer base increased from 506.4 million to 542.4 million, adding 36 million customers over the year. Monthly average revenue per user, or ARPU, increased from ₹211.4 to ₹218.8.

ARPU measures the average monthly revenue generated from each customer. Its improvement shows that revenue growth was supported by both a larger customer base and higher average spending.

Customer retention also improved. Monthly churn, which measures the proportion of customers leaving the service, declined from 1.9% to 1.6%.

Together, these figures show that Jio expanded its customer base while reducing the rate at which customers left. Maintaining that combination would support future growth, although competitive pricing and customer acquisition costs also matter.

Higher Data Usage Does Not Automatically Mean Higher Revenue

Monthly data consumption per customer increased from 38.7 GB to 44.2 GB. Jio’s customer base using its newer mobile network also expanded from 234.4 million to 300 million.

However, ARPU increased by only 3.5%. Customers used substantially more data, but their average monthly spending rose more slowly.

This distinction matters because data consumption measures usage, while ARPU measures revenue. Customers can consume more data within an existing plan without paying proportionately more.

Jio is expanding its offerings across entertainment, productivity, gaming and computing. These services could help generate additional revenue and strengthen customer relationships, but higher usage alone does not prove that customers will spend more.

Home Broadband Is Becoming a Larger Growth Driver

Jio’s home broadband customer base increased from 22.7 million to 30 million. AirFiber customers, included within that base, increased from 9.6 million to 15.1 million.

AirFiber provides home internet through a wireless connection, helping Jio reach households without relying entirely on a physical fibre connection to each home. Its expansion gives the company another source of growth alongside mobile services.

A household broadband connection also creates opportunities to offer television content, gaming and computing services. This can deepen the customer relationship beyond basic internet access.

However, the presentation does not separately disclose home broadband profitability. Customer growth establishes demand, but investors also need to assess whether revenue from these connections can cover installation, equipment and service costs while generating attractive profits.

Digital Services Are Growing Beyond Connectivity

Jio Platforms’ standalone revenue increased from ₹3,941 crore to ₹4,881 crore. The presentation describes this revenue as representative of digital offerings, including entertainment content, enterprise managed services, cloud gaming and cloud computing.

This supports the company’s effort to generate more business beyond connectivity. Its enterprise strategy includes combining internet services with cloud, cybersecurity and other technology solutions.

However, standalone revenue should not be added separately to consolidated revenue. These figures describe different reporting levels and are not independent revenue pools.

The investor question is whether digital services can become a larger and consistently profitable contributor. Revenue growth is encouraging, but the presentation does not provide a separate profit breakdown for each offering.

Why Net Profit Grew More Slowly Than Operating Earnings

Despite stronger operating margins, net profit growth remained below EBITDA growth. Finance costs increased 40.3% to ₹3,009 crore, while depreciation and amortisation rose 14% to ₹7,611 crore.

Depreciation and amortisation spread the cost of assets, such as network equipment and intangible assets, over their useful lives. Along with finance costs, these expenses reduce the operating earnings that ultimately reach the net profit line.

As a result, EBITDA increased 16.6%, while net profit rose 13.7%. Investors should therefore assess both operating margins and the expenses below operating profit.

Lower Debt Strengthened the Balance Sheet

Net debt declined 78.6% to ₹8,822 crore. Total borrowings fell from ₹74,491 crore to ₹58,943 crore, while cash and marketable securities increased from ₹33,330 crore to ₹50,121 crore.

The presentation states that these figures exclude the impact of IPO proceeds. The improvement therefore reflects the balance sheet position before that money was included.

EBITDA less cash capital expenditure increased 52.5% to ₹15,449 crore. This indicates a larger surplus after capital spending, although it is not the same as free cash flow because it excludes other cash movements, including taxes, interest and working capital changes.

Author’s Take

Jio’s Q2 results show growth across customers, average spending and operating profitability. Expanding home broadband, rising digital services revenue and lower net debt also strengthen its position.

The key test is whether these gains translate into sustained net profit and cash generation. Higher finance costs show why improving operating margins alone cannot explain the full earnings picture, while rising data usage needs to produce meaningful additional revenue over time.