With the Jio Platforms IPO scheduled to open on October 21, 2026, brokerage firm Nomura has highlighted a potential valuation gap for Bharti Airtel. Analysts argue the telecom major is trading at a 12-15% discount relative to Jio’s expected market debut valuation. The firm prefers Airtel for its ability to pass on price hikes and its focus on premium subscribers, as investors weigh the impact of new competition in the sector.
The Indian telecom sector is bracing for the arrival of its largest public offering as Jio Platforms prepares for its market debut. With subscription dates confirmed for October 21 to October 23, 2026, and a listing expected by October 28, investors are recalibrating their portfolios. In this environment, brokerage Nomura has issued a note identifying Bharti Airtel as a preferred choice, suggesting that its current valuation discount compared to the upcoming Jio IPO is not fully justified.
Nomura analysts estimate that the enterprise value of Bharti Airtel’s domestic business is trading at a 12% to 15% discount against the valuation implied for the Jio IPO. The firm suggests that this gap may narrow as investors evaluate the operational realities of both telecom giants post-listing. The central argument for this preference lies in the different customer bases of the two companies. Bharti Airtel has historically maintained a larger share of premium subscribers—customers who are generally less sensitive to price changes—which helps the company retain revenue stability even when costs rise.
This strategy was recently tested on October 8, 2026, when Bharti Airtel implemented a ₹50 tariff hike on its postpaid plans. This move is designed to improve the Average Revenue Per User, a key measure of profitability. Nomura points out that Airtel’s ability to execute such hikes without losing a significant number of customers contrasts with the potential risks facing Jio. Jio’s business model has traditionally relied on a massive, price-sensitive user base. If the industry sees further tariff adjustments, Jio may face a higher risk of subscriber churn compared to its competitor.
However, investors should be mindful of the broader risks within the sector. While Bharti Airtel shows operational resilience, it continues to manage high debt levels. With an average debt-to-equity ratio of 2.03, the company faces the constant need to manage its balance sheet while funding network expansion and spectrum payments. At the same time, the sheer scale of the Jio IPO, which is targeting an enterprise valuation between ₹10.3 trillion and ₹12 trillion, could lead to short-term volatility in telecom stocks as institutional capital is reallocated between the incumbent and the new entrant.
Looking ahead, the next few weeks will be critical for the sector. Investors may track the subscription response for the Jio IPO to gauge market liquidity and appetite. For Bharti Airtel, the focus will shift toward its upcoming quarterly financial performance and whether the recent tariff hikes translate into sustained margin growth. The ability of the company to balance debt reduction with capital spending on network infrastructure will also remain a key monitorable for long-term shareholders.