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Management Discussion and Analysis

Digital Services

Jio is a technology platform, conceived to drive digital transformation in India by democratising access to digital connectivity and digital services. This platform is built on key tenets of proprietary technology and phygital distribution capabilities across the country. Jio's connectivity platforms form the fundamental pillar of India's growing digital economy and as of March 2026, serving over 524 million customers, including consumers and businesses.

Strategic Objective

Develop cutting edge digital products and services using proprietary technologies and partnerships for customers in India and beyond.

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Industry Overview

India: World's Third-largest Digital Economy, being Propelled by Connectivity

India is the fastest-growing large economy globally, with digital-led sectors emerging as the main drivers of national growth. According to the Government of India estimates, digital economy is 13% of the country's Gross Value Added (GVA) at US$ 0.5 trillion in 2025, and is set to cross US$ 1 trillion contributing ~20% of the GVA by 2030. The building blocks of this digital growth - digital payments, e-commerce, cloud services, media, and other digitally enabled sectors, are all driven by connectivity as the backbone, with high-speed broadband across mobility and fixed line now available pan-India.

Availability of world-class connectivity infrastructure will also propel AI adoption in India and make it a key enabler for India's AI-driven digital revolution. Recent estimates by Competition Commission of India expect Indian AI market to grow to US$ 131 billion by 2032. Stanford University too ranks India 3rd in its 2025 Global AI Vibrancy Ranking.

Highly-engaged Billion Broadband Users Driving Need for New Digital Use Cases

India's broadband subscriber base crossed 1 billion across Mobility, Wireline and Fixed Wireless Access (FWA) during the year. These billion users are highly engaged with average monthly data consumption of over 25GB on mobile devices and that on home broadband being almost 10x of the usage on mobile network. According to Ericsson Mobility Report, Indian smartphone users will have the highest digital engagement across users globally with average per capita data usage at 65 GB/month. Improving network quality with rapid adoption of 5G and FWA and India's Digital Public Infrastructure are the key drivers. This scale of engagement is attracting global technology companies to offer best-in-class digital services across AI tools, cloud compute, and media and entertainment, among others.

Regulatory Developments

Key regulatory developments during the year:

  • TRAI is carrying out consultation for Spectrum Auction in IMT bands, including the upper 6 GHz and 600 MHz bands.
  • TRAI recommended reducing spectrum usage charges for microwave spectrum and E-Band to a uniform charge of 0.10% of AGR.
  • Government has notified the rules under Digital Personal Data Protection Act, 2023 to protect the digital personal data. Progressive implementation timelines are provided, and the rules will come into full effect by May 2027.
  • TRAI recommended the implementation of Calling Name Presentation (CNAP). Operators have implemented the on-net CNAP while testing for off-net CNAP is underway.

Business Performance

Financial Performance

(₹ Crore) FY 2025-26 FY 2024-25 Y-o-Y Change
Value of Sales and Services 1,76,164 1,54,119 14.3%
Revenue from Operations 1,49,965 1,31,336 14.2%
EBITDA 76,560 65,001 17.8%
EBITDA margin* 51.1% 49.5% 160 bps
*EBITDA margin is calculated on Revenue from Operations

Revenue and EBITDA growth for the Digital Services business in FY 2025-26 were 14.3% and 17.8% Y-o-Y, led by healthy subscriber addition, ARPU growth and scale-up of digital services. Customer engagement on the Jio network remained robust, with average per capita data and voice usage at 42.3 GB and 988 minutes per month, and a subscriber base of over 524 million for the quarter ending March 2026.

Jio's Deep-rooted Engineering and Tech Culture is Catalysing Innovation

Jio has been at the forefront of India's digital transformation with investments in new technologies to provide customers with differentiated value proposition. This has resulted in more customer engagement and expanding use-cases of digital services to streaming, cloud gaming, cloud computing, and AI. Jio's platform is built on an end-to-end proprietary technology stack with core capabilities across:

  • Network: Standalone 5G stack, Indigenous UBR Technology, OSS/BSS Systems
  • Device engineering: JioBharat, Jio Set-Top-Box, 5G Radios, Jio Frames
  • Software and operating systems: Jio TeleOS, JioBharat OS
  • Applications: MyJio App, JioTV+ JioSaavn, JioAICloud, JioPC and, JioGames

Innovation is integral to Reliance's DNA, and drives multiple aspects of its business operations, leading to cost efficiencies, reduced time-tomarket, optimised network planning and rollout, and real-time performance management. This includes innovative distribution architecture, use of digital twin in neural maps and AI tools for optimisation across network and operations.

Reliance is committed to its vision of 'AI Everywhere, For Everyone'

Jio created data economy in India and now Reliance is aggressively pursuing its strategy to build sovereign AI infrastructure in India. To support this, RIL has recently announced a plan to invest ₹ 10 lakh crore for the development of multi-gigawatt (GW) scale AI-ready data centres, creating a sustainable, high-performance compute backbone that will bring the cost of AI down for every Indian citizen. By combining domestic compute capacity with localised, multilingual, voice-first platforms, Reliance will empower everyone - from farmers and students to large corporations - to innovate and compete with cutting-edge AI solutions and services.

Jio Extends Market Leadership across Mobility and Fixed Broadband

As of March 2026, Jio had over 524 million total customers, including 268 million+ 5G users and 27 million+ fixed broadband connections. In three years since its launch, Jio's True5G network has surpassed the scale of Jio's 4G network and now accounts for 55% of wireless data traffic. Jio's proprietary point-to-multi-point Unlicensed Band Radio (UBR) technology has significantly increased market reach and the capacity to connect premises with fibre-like fixed broadband connectivity giving up to 1 Gbps symmetrical bandwidth. This has driven Jio's fixed broadband market share to ~43% as of March 2026.

Jio's unparalleled coverage and capacity are enabling global scale engagement on its network which carried over 241 Exabytes of total data traffic during FY 2025-26, growing 30.8% Y-o-Y and making it one of the largest data operators globally. The scale of Jio's digital transformation is diversified across demographics, income brackets and geographic locations.

Jio Provides Nation-Scale Gateway to Digital India

Extensive pan-India reach, large, diversified and highly engaged customer base, together with multilayered access ecosystem, makes Jio a highly preferred gateway to digital India. It has an extensive multi-layered phygital network for providing seamless access of owned and third-party digital services, including:

  • MyJio App to enable personalised digital discovery and access to a large library of digital services.
  • Jio Set-top-box and Jio TV+ application to enable at home digital use cases across entertainment, cloud compute, cloud gaming and smart home solutions.
  • Pan-India network of localised and scalable physical touchpoints with feet-on-street personnel trained for sales, installation and customer service.

During the year, Reliance Intelligence partnered with Google, providing Millions of Jio users with 18 months of complimentary access to Google AI Pro (Gemini).

On the enterprise front, Reliance Enterprise Intelligence Limited (REIL), was established as joint venture with Meta to leverage Meta's open-source Llama models and Reliance's vast enterprise and SMB footprint to deliver 'enterprise-ready AI' solutions. In addition, Jio also partnered with Jio BlackRock and JioHotstar for joint go-to-market development offering Jio customers unique value proposition across multiple use cases.

Taking Technologies Developed in India to Global Markets

Jio's digital service offerings are based on indigenous technologies which enables control over the entire value chain. After large-scale development of 5G and FWA stack in India, Jio as a managed services provider would provide its proprietary network technologies in select international markets in partnership with local operators. This will include cloud-native RAN, 5G core, OSS/BSS platforms, UBR-based FWA, JioBharat, JioTV+ and Jio Set-top-box.

SCOT Analysis

Strengths

  • Amongst the most advanced connectivity infrastructure globally.
  • Unmatched digital and physical distribution footprint in India.
  • Technology offerings span across consumer and enterprise segments.

Opportunities

  • Jio's 5G network leadership is driving India's progress towards 5G and fixed broadband connectivity.
  • Jio is ready to take its technology stacks to global markets.
  • AI penetration in India to be driven by Jio's high speed, low-latency network.

Challenges

  • Unforeseen disruptions across the global technology supply chain.
  • Investment in developing use cases and increasing engagement across its digital platforms.

Threats

  • Evolution of new technologies and services could change consumer behaviour and make current technologies redundant.
  • Irrational price competition could impact long term returns.

Outlook

Jio has been the catalyst for India's digital transformation by bringing world-class technology platforms to Indian users. Jio's over 524 million subscriber base and pan-India distribution network will further drive India's AI leadership and enable citizens and enterprises to harness AI tools to create, innovate and grow. This, together with continued growth momentum in mobility and fixed broadband businesses will drive sustained value creation for all stakeholders over many years.

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