RIL to spend $15 billion annually on capex for two years; Jio IPO to help fund outlay: Moody’s

Telecom-to-oil conglomerate Reliance Industries (RIL) is expected to maintain consolidated capital expenditure of around $15 billion annually over the next two years, with the equity funding raised through Jio Platforms’ initial public offering (IPO) helping finance part of the investment, according to Moody’s Ratings.

The rating agency said the Jio IPO would provide RIL with greater funding flexibility as the conglomerate continues to invest in telecommunications networks and digital services without increasing its leverage.

“Equity funding at Jio Platforms will help fund part of this spending,” Moody’s said, while noting that the key credit benefit of the IPO would be increased funding flexibility rather than a material improvement in RIL’s leverage or liquidity over the next 12 months.

Jio Platforms, RIL’s 66.4%-owned digital services subsidiary, launched its IPO on October 21. The offer comprises 27 crore fresh shares and aims to raise ₹30,213 crore ($3.4 billion) at a price band of ₹1,065–₹1,119 per share.

Jio IPO strengthens RIL’s financial flexibility

Jio Platforms plans to use up to ₹27,500 crore ($2.9 billion) of the proceeds to repay borrowings at its wholly owned subsidiary, Reliance Jio Infocomm Ltd. The repayment will reduce debt and associated servicing costs, strengthening RIL’s capacity to fund investments without increasing leverage, Moody’s said.

“The IPO is credit positive for RIL because the proceeds will reduce debt and associated servicing costs,” the agency said.

The offer consists entirely of new shares, with neither RIL nor other existing shareholders selling their holdings. Jio Platforms will remain strategically important to its parent after the listing, with RIL retaining control.

Jio Platforms contributed 37% of RIL’s consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) in the financial year ended March 31, 2026, Moody’s said. The listing will also diversify Jio Platforms’ funding sources and broaden its access to domestic and international capital for future investments, acquisitions and strategic partnerships.

The listing is expected to enhance transparency and provide a clearer market valuation for RIL’s digital business. The final offer structure will determine the extent of dilution and the increase in minority interests.

Strong credit metrics provide a cushion

Moody’s said RIL’s credit quality remained underpinned by strong credit metrics and excellent liquidity. It forecasts the company’s adjusted net debt-to-EBITDA ratio at around 1–1.2 times over the next two years, well below its downgrade threshold of 3 times.

As of March 31, RIL held around ₹2.5 lakh crore ($29.3 billion) in cash, cash equivalents and current investments, compared with ₹1.1 lakh crore ($11.8 billion) in reported current borrowings, including lease liabilities.

RIL is a diversified conglomerate with businesses spanning oil-to-chemicals, digital services, retail, media and entertainment, upstream oil and gas, and new energy. Moody’s estimates that the company generated consolidated revenue of around ₹10.8 lakh crore and EBITDA of ₹2.1 lakh crore in FY26.