India Telecom Sector "Q1FY27 Preview: Getting close to the next tariff..."

Research evidence excerpt

India Telecom Sector "Q1FY27 Preview: Getting close to the next tariff..."

Global Research

8 July 2026ab

India Telecom Sector Equities

IndiaQ1FY27 Preview: Getting close to the next tariff

increase? Wireless Communications

Navin Killa

Analyst

navin.killa@ubs.com

Previewing the Indian Telco Sector Q1FY27 +852-2971 7594

We expect a relatively stable Q1FY27 for Indian telecom operators with 1.9% and 2.3% Neil John

QoQ revenue growth for VIL and Airtel's India mobile business, reflecting better Associate Analyst

seasonality (more days). Airtel's consolidated revenues should grow 3.6% QoQ helped neil.john@ubs.com

by stronger African currencies and strong growth in broadband. With VIL's AGR relief +91-22-6155 6000

confirmed and moderation in oil prices in recent weeks, we will monitor management Aditya Chandrasekar

commentary for progress on two key future sector drivers: 1) VIL's debt and equity Analyst

funding, which is critical for it to accelerate capex; and 2) potential for tariff increase aditya.chandrasekar@ubs.com

before end of CY2026 (our and consensus base case currently at c10% around Sep- +91-22-6155 6056

Dec). We expect Indus' results to be largely uneventful. We have Sell ratings on Bharti Ajay Raj Choudhary

Airtel and Indus Towers and a Neutral on Vodafone Idea. Associate Analyst

ajay-raj.choudhary@ubs.com

Bharti Airtel +91-20-3055 5000

We expect consolidated and India mobile revenues to grow 3.6% and 2.3% QoQ due to

higher number of days, as tariffs have been stable. Broadband should continue to

benefit from accelerating growth in an under-penetrated market; we estimate revenues

to grow 37% YoY and 7% QoQ. We will monitor for any negative impact on Airtel

Business segment from the Middle East conflict, but currently factor accelerating growth