ICICI Securities’ Pankaj Pandey said the next tariff hike for telecom operators could hit 16‑20% after last year’s July increase, a move that should lift earnings and free‑cash flows into a new regime.
The forecast comes as Bharti Airtel already reports healthy free‑cash flows, which management expects to deploy in data‑center expansions and other high‑margin 5G infrastructure projects.
Pandey stresses the industry’s competitive landscape is tightening, with only a handful of players—primarily Airtel, Jio Platforms and Vodafone Idea—likely to dominate once the new price levels are in place.
Beyond telecom, Pandey upgraded Radico Khaitan’s outlook, citing a 30% growth upgrade and a move from 11‑13% EBIT margins to a narrower, premium‑segment focus that should sustain better profitability.
He also highlighted Piramal Pharma’s CDMO arm, noting that 54% of its revenue stems from contract development and manufacturing, with a 38% YoY growth rate, riding a nearly $135 billion patent‑expiry cycle that could swell the opportunity to $300 billion.
Overall, ICICI Securities maintains a buy rating on the telecom sector and the highlighted companies, projecting that the sector’s weight in the Nifty will increase as tariff hikes translate into higher monetisation of 5G capex and stronger free‑cash‑flow streams.