Reliance Industries’ Jio Platforms Ltd (JPL) posted strong financial results for the second quarter of FY25, despite experiencing its first subscriber loss in 12 quarters. The company’s decision to raise tariffs led to a 23.4% increase in net profit, driven by higher revenue per user and growing data consumption. However, Jio also lost 10.9 million subscribers, mainly to Bharat Sanchar Nigam Ltd (BSNL), which maintained lower rates.
Revenue Growth Driven by ARPU and Data Usage
JPL’s net profit climbed to Rs 6,539 crore, compared to Rs 5,299 crore a year earlier. Its average revenue per user (ARPU) rose by 7.3% to Rs 195.10, following a 12-25% increase in tariffs for most of its users. While the rate hike boosted revenue, the company reported a decline in its subscriber base, which now stands at 478.8 million.
Jio’s revenue from operations also grew by 18%, totaling Rs 31,709 crore, fueled by strong data consumption and the expansion of its 5G services.
Loss of Low-Value Subscribers
Analysts pointed out that Jio’s subscriber loss primarily involved low-value customers, who are more sensitive to rate hikes. These losses are expected to decline in the coming quarters as the initial impact of the price hike wears off. Meanwhile, Jio has seen steady growth in ARPU, which is projected to continue increasing as more users adopt long-term tariff plans.
Expansion in 5G and Home Broadband
Jio continues to lead the 5G market, with 148 million 5G users, making it the largest operator outside China. The company’s home broadband connections also grew to 2.8 million, with a target of connecting 100 million homes across India.
Future Outlook
Despite the subscriber loss, Jio’s profitability and ARPU growth reflect its ability to adjust to market conditions. As Jio focuses on expanding its AI and 5G ecosystem, the company is expected to sustain its leadership in India’s telecom and digital services market.
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