HSBC said the probability of a telecom tariff hike in 2026 has increased, while maintaining that growth drivers for leading players Bharti Airtel and Reliance Jio remain intact. The brokerage expects average revenue per user (ARPU) growth, rising home broadband subscriber additions, and healthy free cash flows to support dividend growth across the sector.
On Bharti Airtel, HSBC reiterated a buy call with a target price of ₹2,200 per share, which implies an upside potential of about 13.4% from the current market price of ₹1,940.50. On Reliance Industries, the brokerage raised its target price to ₹1,750 per share while maintaining a buy rating, indicating a strong 23.9% upside from the CMP of ₹1,413. For Vodafone Idea, HSBC kept a reduce rating with a target price of ₹5.80 per share, which represents a downside of around 25.6% from the CMP of ₹7.79.
The brokerage noted that while Airtel and Jio are well positioned to benefit from industry growth drivers, Vodafone Idea continues to face challenges despite sector tailwinds.
Disclaimer: The views and investment recommendations expressed are those of HSBC. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
