Reliance Jio Posts 4.9% Net Profit Growth in Q3 Amid Higher Revenue and Subscriber Additions

Mumbai: Reliance Jio Platforms (RJP), parent company of telcom operator Reliance Jio, reported a robust quarterly growth in net profit, surpassing its investors' expectations.

The company clocked a net profit of Rs 6,861 crore for the October-December quarter, up 4.9% from the preceding quarter, as revenue from operations rose 4.3% to Rs 33,074 crore due to tariff hikes, subscriber additions, and increased data and voice consumption.

Reliance Jio's average revenue per user (Arpu) per month jumped 4.2% quarter-on-quarter to Rs 203.3, following the impact of July's tariff hike, which pushed Arpu growth in Q3. The telecom operator also added 3.3 million new subscribers during the quarter compared to a net loss of 10.9 million subscribers in the preceding period.

The company said it expects strong operating revenue growth, with the residual impact of tariff hikes still to be felt. With more than 70% incremental JioAirFiber additions coming from underserved cities/towns, Reliance Jio announced its highest-ever quarterly home connections at over 2 million.

Total data traffic surged 3.3% QoQ to 46.5 billion GB, with the help of growing 5G adoption and fibre broadband users. Consolidated operating profit or EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) rose 4.1% to Rs 16,585 crore, leading to a margin increase of 10 basis points to 50.1%.

Reliance Jio recorded its fastest quarter ever in terms of home connections at over 2 million and 17 million total connections, following significant progress made in Q3.

"Robust growth is coming from digital services business led by sustained subscriber additions," said Mukesh Ambani, Chairman and Managing Director of Reliance Industries. "This was well-supported by a favorable subscriber mix, with an increasing number of users upgrading to 5G networks."

Akash M Ambani, Chairman at Reliance Jio added, "We believe Jio will continue to lead the charge in technology innovation and play a key role in digital inclusion by bringing high-quality communication technologies to all Indians."

In related news, Reliance Starlink raised channel bouquet prices by 18%.