Reliance Jio Q2 Results Review - Underlying Capex Dips Sharply; Net Debt Reduces Slightly: ICICI Securities

ICICI Securities Report

Reliance Jio Infocomm Ltd.’s revenue grew 14.5% YoY in Q2 FY25, helped by tariff hike, faster growth in FTTH and rise in enterprise business. Ebitda grew 16.1% YoY, and incremental Ebitda margin was only 60%, restricted due to higher cost charged to P&L.

RJio’s free cash flow (after finance cost) generation turned positive, at Rs 6.5 billion in H1 FY25. This was aided by significant reduction in calculated capex at Rs 156 billion (versus Rs 345 billion in H1 FY24).

Net debt reduced by Rs 20 billion in H1 FY25 to Rs 1,597 billion. CWIP continues to expand at Rs 2,227 billion (versus Rs 2,079 billion in FY24) pending 5G commercial launch. We cut our Ebitda estimates by 0.4–3.2% for FY25/26E on higher net sub loss.

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