Jio Platforms Q2 net profit jumps 23.4% to ₹6,539 crore amid ARPU boost

Jio Platforms on Monday reported a 23.4 percent year-on-year rise in consolidated net profit for Q2 FY25 to Rs 6,539 crore, as average revenue per user surged to Rs 195.1 per month, bolstered by tariff hike and better subscriber mix.

The revenue from operations of Jio Platforms - which houses Reliance Industries' telecom and digital businesses - rose 18 percent to Rs 31,709 crore in the just-ended September quarter.

The gross revenue stood at Rs 37,119 crore in Q2 FY25, 17.7 percent higher than the corresponding period of the previous year.

Reliance Jio Infocomm, the telecom business, clinched a 23.1 percent increase in standalone net profit for Q2 FY25 to Rs 6,231 crore. The revenue from operations of Reliance Jio Infocomm - the largest of three private telecom players in the Indian market - climbed almost 14.5 percent year-on-year to Rs 28,338 crore.

ARPU - a key metric for telcos - increased to Rs 195.1 with the partial follow-through of the tariff hike and a better subscriber mix, Reliance said in its earnings release.

The ARPU was substantially higher (by 7.4 percent) compared to Rs 181.7 in Q1 FY25 and Q2 FY24.

The full impact of the tariff hike will flow through in the next 2-3 quarters, according to an earnings statement.

Engagement levels continued to remain strong, with total data and voice traffic increasing by 24 percent and 6.4 percent, respectively.

"Limited amount of SIM consolidation observed after the tariff hike, offsetting continued strength in gross addition in 2Q FY25; monthly churn increased to 2.8 percent," the statement said.

The total subscriber base stood at 478.8 million in Q2 FY25, lower than 489.7 million in Q1 FY25, following some bit of SIM consolidation that the company expects to taper down going forward.

Jio has reached 148 million subscribers on 5G in less than two years of the launch and continues to be the largest 5G operator outside China, the company said.

Per capita data consumption increased to 31GB/month, with a higher mix of 5G and home users.

The fiscal second quarter marked another record quarter for home connects, it said, adding that Jio is the fastest-growing fixed wireless operator globally, with over 2.8 million JioAirFiber connections.

Jio exuded confidence that scaling up distribution, continuous optimisation of the onboarding process, and technology edge would enable it to achieve the target of connecting 100 million homes in India at record speed.

"Jio has transformed India from 5G-dark to 5G-bright through unmatched spectrum holdings, 5G Standalone Architecture, and advanced technologies like Carrier Aggregation and Network Slicing," it said.

Akash M Ambani, Chairman of Reliance Jio Infocomm, said Jio since its inception has focused on deep tech innovation to create customer and shareholder value.

"The ongoing transformation created by Jio True5G and JioAirFiber in India’s digital landscape is a testament to this approach. AI is creating the next runway for this transformation, and Jio is committed to developing the world’s best AI ecosystem in India, for all Indians. Jio is committed to delivering robust shareholder returns and has demonstrated a strong uplift in financial performance in the current quarter," he added.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, said growth in Digital Services was led by increased ARPU and improving customer engagement metrics, reflecting the strong value proposition of services.

"The home broadband segment is witnessing accelerated momentum on the back of our unique industry-leading JioAirFiber offering. Jio’s broad spectrum of offerings enables it to digitally empower every village, town and city in India as well as the country’s small and medium scale enterprises," he said.

The digital services business continues to focus on innovative deep-tech solutions on a national scale and is on track to deliver the path-breaking benefits of Artificial Intelligence to all Indians, he added.

To support Jio's vision of 'AI Everywhere for Everyone using Connected Intelligence' Jio's AI-Cloud Welcome offer was introduced during the quarter. Under this offer, Jio users will get up to 100 GB of free cloud storage to securely store and access all their photos, videos, documents, digital content, and data.