Jefferies has reiterated its positive view on India’s telecom sector, forecasting 14% revenue CAGR over FY25–27.
In FY25, sector revenues grew 13% YoY, largely driven by higher tariffs. Bharti Airtel and Reliance Jio accounted for 95% of incremental revenue gains, with Bharti gaining 140 bps market share and Jio adding 50 bps.
Jefferies noted that Bharti’s market share gains were broad-based, while Jio’s gains were more concentrated in A/B circles.
Looking ahead, slower market share gains for Jio and potentially stronger market share defense by Vodafone Idea (VIL) could shift the industry’s focus toward new tariff hikes to drive profitability.
Jefferies reiterated Bharti Airtel as its top pick in the sector.
Disclaimer: The views and target prices mentioned in this article are as stated by Jefferies. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
