Bharti Airtel, Jio, Vodafone Idea Shares in Focus; Telcos’ Operating Profit Likely to Grow 12-14% in FY26

India’s telecom industry is set for robust growth in FY26, with operating profit projected to increase to approximately ₹1.55 lakh crore, according to Crisil Ratings.

The growth is largely driven by higher data usage and a rise in average revenue per user (ARPU), which is expected to increase to ₹220–225 from ₹205.

Drivers of Telcos’ Growth

The rollout of 5G networks and the adoption of premium data plans are expected to significantly boost ARPU, while a lower capital expenditure (capex) intensity post-5G rollout is likely to improve free cash flow. Crisil estimates the free cash flow could reach ₹70,000 crore, enhancing the credit profiles of leading telecom players.

Crisil Ratings notes that the industry benefits from high operating leverage, with every Re 1 increase in ARPU contributing ₹850–950 crore to overall operating profit.

The analysis, covering Bharti Airtel, Reliance Jio, and Vodafone Idea together holding 93% of the subscriber market share indicates strong financial performance across the sector.

Stock Impact and Outlook

Investors in Bharti Airtel, Reliance Jio, and Vodafone Idea could see positive sentiment as improving operating profits and cash flows strengthen the companies’ balance sheets. Reduced capex post 5G, coupled with robust ARPU growth, positions these telecom giants for sustained profitability, as per news reports.

Conclusion

With surging data consumption, 5G adoption, and improved free cash flows, India’s telecom industry is poised for a solid FY26. Bharti Airtel, Reliance Jio, and Vodafone Idea are expected to benefit the most, reflecting stronger operating performance and healthier credit profiles.

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