Cash Capex Declines 36% Between FY24 and FY26: What This Means for Jio IPO?

Ahead of Jio IPO, investors are taking a look at the financial trends of the company to assess its health. Jio Platforms Limited’s cash capital expenditure (capex) declined by approximately 36% between FY24 and FY26, while revenue from operations grew by 34.1%, EBITDA increased by 38.8%, and net cash flow from operating activities rose by 34.5% over the same period.  

In this article, we take a closer look at the company’s financials and how its capital expenditure has evolved over the past three financial years. 

Jio’s Cash Capex Falls from ₹53,509 Crore to ₹34,184 Crore 

According to Jio Platforms’ Draft Abridged Prospectus, cash capex fell from ₹53,509.6 crore in FY24 to ₹44,268 crore in FY25 and ₹34,184.3 crore in FY26. The reduction coincided with the moderation of the heavy investment cycle associated with network development, including 5G infrastructure expansion. 

Cash capex, as defined in the prospectus, includes cash expenditure on property, plant and equipment, spectrum and other intangible assets, net of proceeds from asset disposals. 

Revenue and EBITDA Rise as Capital Spending Moderates 

Jio Platforms’ financial performance improved between FY24 and FY26, with revenue and EBITDA increasing alongside a rise in EBITDA margin. At the same time, the company reported EBITDA less Cash Capex increased significantly as cash capital expenditure declined. 

Revenue from operations grew by approximately 34.1% between FY24 and FY26, while EBITDA increased by around 38.8%. EBITDA margin rose from 50.16% to 51.91%, indicating an improvement in operating profitability relative to revenue. Meanwhile, EBITDA less Cash Capex increased substantially from ₹1,449.1 crore to ₹42,071.1 crore, reflecting higher EBITDA alongside lower cash capital expenditure.  

What Lower Cash Capex Means for Cash Flow Generation?

Jio Platforms’ cash capex declined while operating cash flow and the amount remaining after cash capex increased between FY24 and FY26. The following figures illustrate the trend. 

Overall, the figures indicate that Jio generated stronger operating cash flow while spending less on capital expenditure, improving the cash available after capex. However, EBITDA less Cash Capex is a company-reported metric, not conventional free cash flow, and future cash generation will depend on operating performance and investment requirements. 

Key Details of Jio IPO 

The Jio Platforms IPO is expected to raise ₹37,700 crore, with a reported price band of ₹1,150–₹1,220 per share. The proposed issue comprises 27 crore fresh equity shares, with no Offer for Sale (OFS), and each share has a face value of ₹10.   

The prospectus states that the proposed IPO proceeds are intended to be used, in part, to prepay or repay certain borrowings of material subsidiary Reliance Jio Infocomm Limited, alongside general corporate purposes. Future cash generation will continue to depend on operating performance and capital investment requirements.  

Conclusion 

Jio Platforms’ declining cash capex and rising operating cash flow indicate improved cash generation ahead of its proposed IPO. However, sustaining this trend will depend on future business growth and investment requirements.