Bharti Airtel announced a ₹50 postpaid tariff increase on June 28, 2024, as part of a broader 10‑20% hike projected for the second half of FY27. The move raises every postpaid plan by roughly 15‑20%, aligning with the 5G monetisation push that all three major operators are pursuing.
The hike boosted Q4 FY25 ARPU to ₹245 from ₹211, a 16% YoY jump that eclipsed the consensus estimate of ₹230 quoted by Equirus Securities. Postpaid services now account for 8‑12% of the company’s topline, underscoring the strategic emphasis on higher‑margin revenue.
Reliance Jio and Vodafone Idea followed suit, with Jio’s ARPU rising to ₹206 and Vodafone’s to ₹164 in the same quarter. The trio’s parallel tariff adjustments signal a sector‑wide shift to capture the premium 5G demand, a trend that has already lifted all three stocks in the last two weeks.
Equirus Securities projects a 10‑20% tariff hike in H2 FY27, which could lift Bharti Airtel’s ARPU above ₹300 by FY28. The forecast is based on the company’s capital‑expenditure drive and the need to sustain long‑term returns amid intensifying competition.
Motilal Oswal's recent note highlights the potential impact of a Jio Platforms IPO, noting that a successful listing could serve as a re‑rating catalyst for both Reliance Industries and Bharti Airtel, adding upward pressure on valuations across the telecom sector.