Mukesh Ambani, Akash Ambani’s big win, Reliance Jio Q3FY25 net profit rises to Rs…

Mukesh Ambani, Akash Ambani led Jio’s strong financial performance underscores its dominant position in India’s telecom market, with innovative services and strategic pricing driving sustained growth.

Reliance Jio, India’s largest telecom operator and a key arm of Mukesh Ambani-led Reliance Industries, reported a robust 24% increase in standalone net profit for the October-December 2024 quarter, reaching ₹6,477 crore compared to ₹5,208 crore in the same period last year. Sequentially, the net profit rose from ₹6,231 crore in the preceding July-September 2024 quarter.

The company’s revenue from operations climbed to ₹29,307 crore, up from ₹25,368 crore in the year-ago quarter, driven by higher average revenue per user (Arpu), largely attributed to tariff hikes.

Reliance Jio Q3FY25 results

Jio surpassed market expectations on net profit, revenue, and Arpu, supported by increased adoption of JioAirFiber and the return of mobile users. Consolidated net profit for the quarter rose 4.9% quarter-on-quarter to ₹6,861 crore, while consolidated revenue from operations grew 4.3% sequentially to ₹33,074 crore. On a year-on-year basis, Jio posted a 19.4% rise in revenue and a 26% increase in net profit, outpacing analyst estimates.

The company’s earnings before interest, taxes, depreciation, and amortization (Ebitda) rose 18.8% year-on-year to ₹16,585 crore, up from ₹13,955 crore in Q3 FY24. However, Ebitda fell slightly short of analysts’ expectations, as brokerage IIFL Securities had projected a 19.5% year-on-year increase.

JioAirFiber, the company’s fixed wireless access service offering fibre broadband-like speeds without requiring direct fibre connections to homes, played a significant role in revenue growth. Alongside JioFiber, these services continued to expand Jio’s customer base.

Arpu for the December quarter stood at ₹203.3, up from ₹195.1 in the September quarter and marking a 12% increase from ₹181.7 a year ago. Jio stated that the residual impact of the recent tariff hike will become more apparent in the coming quarters, with trends likely to mirror the previous two hikes. This is due to a significant portion of Jio users being on annual plans or having recently recharged.

Akash Ambani is the Chairman of Reliance Jio Infocomm Limited (RJIL). He handles development of products and services for the company. He also serves on the board of Jio Platforms Limited, which is Reliance Industries’ digital services business.