On a sequential basis, net debt declined 7.5% from ₹9,539 crore in the June quarter. The company’s net leverage ratio also improved significantly to 0.10 times in Q2 FY27 from 0.55 times in the year-ago quarter.
The company attributed the improvement in its balance sheet to EBITDA growth and lower capital expenditure intensity. Notably, the reported Q2 FY27 balance-sheet figures are before the impact of IPO proceeds.
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Stronger earnings support debt reduction
The improvement in Jio’s financial position comes alongside healthy operating performance. Revenue from operations increased 11.4% year-on-year to ₹40,475 crore in Q2 FY27, compared with ₹36,332 crore in the corresponding quarter last year.
EBITDA grew at a faster pace of 16.6% to ₹21,879 crore, while the EBITDA margin expanded by 250 basis points to 54.1% from 51.6%.
Profit after tax increased 13.7% to ₹8,387 crore during the quarter.
Another important indicator is the company’s ability to generate cash after capital expenditure. EBITDA less cash capex stood at ₹15,449 crore in Q2 FY27, increasing 52.5% from ₹10,129 crore in Q2 FY26.
For the first half of FY27, this metric reached ₹32,130 crore, almost double the ₹16,216 crore reported in the corresponding period last year.
This improvement indicates that a larger portion of operating earnings is being retained after cash capital expenditure, strengthening the company’s financial flexibility.
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Where could Jio invest next?
The company has identified four priorities for future growth: proprietary technology, digital distribution, enterprise services and international expansion.
Its plans extend beyond traditional telecom connectivity. Jio is looking to expand businesses across cloud computing, cybersecurity, Internet of Things (IoT), private 5G and enterprise managed services. It also wants to commercialise its proprietary technology in overseas markets through partnerships and an asset-light model.
Its consumer-facing digital ecosystem, spanning entertainment, artificial intelligence, financial services and productivity tools, offers another opportunity to monetise its large customer base.
Jio ended September with 542.4 million customers, including 300 million 5G subscribers. Its broadband customer base reached 30 million, while AirFiber subscribers increased to 15.1 million.
Brokerages including Geojit, Religare Broking and Canara Bank Securities have identified higher ARPU, broadband expansion, AI and enterprise services as potential long-term growth drivers.
However, the company has not announced a specific new capital expenditure budget for these initiatives.
The reduction in net debt and successful IPO mark an improvement in Jio’s financial capacity. The next challenge will be converting that strength into new revenue streams, higher returns on capital and sustainable shareholder value. Investors will closely watch whether its emerging businesses can contribute meaningfully to earnings beyond its established telecom operations.
