Jio Platforms shares rose more than 1% to Rs 1,435 on Friday, extending a post-listing rally that has pushed the stock up more than 28% across its first three trading sessions.

The stock made its market debut on Wednesday at Rs 1,359, a 21.36% premium to its IPO price. Within days, Jio had become India’s second-largest listed company by market capitalisation, valued at around Rs 12.5 lakh crore and ahead of rival Bharti Airtel.

The IPO that sold out in minutes

Demand was not a close call. The issue was fully subscribed within 100 minutes of opening. The Rs 5,500 crore portion reserved for qualified institutional buyers was snapped up within the first 10 minutes.

By the close of the third day, the IPO had drawn subscriptions of 22.2 times the shares on offer. The QIB portion alone was subscribed 70.55 times.

Those numbers set the tone for the trading that followed. On Friday, the shares gained another 5% in morning trade and touched a high of Rs 1,490 on the BSE before settling near Rs 1,435.

Nomura: the disruptor is now the leader

Nomura was the first brokerage to initiate coverage, assigning a Buy rating and a target price of Rs 1,340. That level has already been overtaken by the market.

The brokerage pointed to Jio’s extensive 5G coverage. Data usage per subscriber is 27% higher than Airtel’s, and Jio’s monthly churn rate of 1.6% is the lowest among peers. Nomura argues those advantages put Jio in a strong position to narrow the average revenue per user gap with Airtel.

‘the disruptor is now the leader of the industry’

The balance sheet is the other pillar of the call. Nomura’s analysts estimate Jio will become debt-free by FY29. Net debt-to-equity, including deferred payment obligations, fell to 0.37 times in FY26 from 0.56 times in FY24.

With most of its 5G investment cycle behind it, Jio is expected to cut capital expenditure to around 23% of revenue in FY26, down from 35% in FY25. That shift should free up significant cash and drive a sharp improvement in free cash flow.

Motilal Oswal sees a premium in the near term

Domestic brokerage Motilal Oswal initiated coverage with a Buy rating and a target price of Rs 1,350. It labelled the company ‘Gateway to digital India.’

Based on the firm’s estimates, Jio is valued at par with Bharti Airtel’s India business, excluding Indus and Airtel’s minority interests, at both the IPO price and the current market price. Motilal believes Jio could command a premium to that business in the near term. Its reasons are market leadership, greater influence over industry tariffs and a free float of less than 3%.

The same report warns that Jio’s earnings and valuation estimates remain highly sensitive to growth in wireless ARPU.

Dolat Capital: from telecom to digital infrastructure

Dolat Capital initiated coverage with an ‘Accumulate’ rating and a target price of Rs 1,435, the same level the stock is trading at. The brokerage says Jio is becoming more than a telecom company.

Its next phase, according to Dolat, may depend less on adding mobile subscribers and more on monetising the digital infrastructure it has built. Tariff repair, 5G upgrades, home broadband and enterprise services are pushing the company toward what Dolat calls an ‘integrated telecom cum tech play.’

Dolat projects revenue, EBITDA and adjusted profit to grow at compound annual growth rates of 13%, 15% and 21%, respectively, between FY26 and FY29. Growth is expected to come from tariff hikes, premiumisation, 5G monetisation and usage-based pricing, along with expansion in home broadband, enterprise services, digital products and international partnerships.

Elara Capital bets on affordability

Elara Capital has a Buy rating on the stock. Its analysts expect mobility to remain the main driver of revenue and profit.

Subscriber additions are projected to grow at a CAGR of 3% during FY26-29E, backed by affordable plans, an extensive network and low churn. Elara also expects a tariff hike of 12-15% in H2FY27E. Paired with migration from 2G to 4G and 5G, prepaid-to-postpaid upgrades, premiumisation and bundled digital services, that hike is expected to lift ARPU from Rs 214 in FY26 to Rs 257 in FY29E.

Affordable data, Elara argues, remains the foundation of Jio’s ecosystem. The company uses its customer base and distribution platforms to bring in third-party services, lower customer acquisition costs and deepen engagement.

What comes next: Investors will be watching the company’s first results since listing. The brokerages agree that tariffs and wireless ARPU will decide whether the premium holds. Readers should review the original research reports before making any investment decisions.