Reliance Jio’s wallet-friendly plans might’ve just gotten a little less friendly after last year’s tariff hikes—but here’s the kicker: the telecom giant is still cashing in on those price bumps, and the benefits won’t fully kick in until mid-2026.
Yep, you read that right. Thanks to customers on those long-term (3-month, 6-month, or yearly) recharge packs, Jio’s average revenue per user (ARPU) is set to keep climbing for two more quarters. But before you assume everything’s sunshine and rainbows, analysts are pointing out a stubborn problem—Jio’s profits aren’t growing as fast as they should be.
Why Jio’s ARPU is (Still) on the Rise
Back in July 2024, Jio, along with Airtel and Vi, hiked tariffs—because, well, inflation hits telcos too. But unlike its rivals, Jio has a ton of users on those longer-duration plans. That means the full effect of the price hike is still trickling in, and analysts say it’ll keep boosting ARPU until at least Q2 FY26 (July-Sept 2025).
Plus, Jio’s home broadband and FWA (fixed wireless access) business is growing fast. Since these services bring in way more money per user than mobile plans, they’re giving ARPU an extra nudge.
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The Catch? Margins Aren’t Budging
Here’s where things get tricky. Even though Jio’s adding millions of users (6.1 million in Q4 alone) and ARPU is inching up, its profit margins have barely moved—stuck around 52-53% for the past two years.
Why? Higher costs. Between marketing its broadband services, handling inflation, and pushing for more home broadband customers (they’re aiming for 100 million homes), expenses are piling up. So even as revenue grows, profits aren’t getting the same boost.
The Big Capex Slowdown Coming Soon
The good news? Jio’s massive spending on 5G and FWA rollout is almost done. After shelling out ₹41,600 crore in FY25, analysts expect capex to drop significantly in FY26. That means more cash flow, fewer heavy investments—and hopefully, some breathing room for margins.
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What’s Next? Another Tariff Hike?
Jio hasn’t dropped any hints about another price increase, but analysts won’t be surprised if one lands by mid-2026. With 5G investments mostly done, the next logical step is squeezing more revenue from users.
Bottom Line
Jio’s ARPU will keep rising, but unless costs cool down, profits won’t jump as much as investors hope. Still, with home broadband growing and capex easing up, the next year could be a turning point.
So, if you’re a Jio user, enjoy those current rates while they last—because history says they won’t stay this low forever.
