Telecom preview: Brokerages anticipate healthy Q2, led by ARPU and subscriber adds

What happened

Brokerages expect India’s telecom operators, including Bharti Airtel and Vodafone Idea, to report a healthy second quarter, with sequential growth in average revenue per user (ARPU), meaning average revenue per customer, and subscriber additions. Analysts have shifted their expected tariff hike timing to mid-2027.

Confirmed

Global impact / market context

Higher ARPU and subscriber additions could lift telecom companies’ revenue even before a tariff increase. For Airtel, upgrades from lower-value packs may support customer revenue, though the article says this benefit may last only one month. A later tariff hike delays another possible source of revenue growth.

Analyst inference

The article presents a mixed near-term picture: brokerages expect customer and revenue growth, supported by migration to newer networks and higher-value plans, but now place the next tariff increase in mid-2027. That timing matters because price increases would raise customer bills and operator revenue.

Analyst inference

What to watch

1. Check reported quarterly ARPU against brokerages’ expected sequential growth, which they attribute to customers moving to newer networks and higher-value plans; weaker growth would mean less revenue improvement. Analyst inference
2. Compare Airtel’s and Vodafone Idea’s reported subscriber additions with brokerages’ expectations; slower customer growth could limit their ability to spread network costs across more users. Analyst inference
3. Watch for changes to the tariff hike timeline, now expected in mid-2027; further delay would postpone higher customer prices and the resulting potential revenue increase. Analyst inference

Evidence

• Original source link unavailable