Telcos to push tariff hike to Dec amid weak sentiment

A 15% TARIFF increase, initially expected by March 2026, is now likely to be postponed to December, as pressure on consumer sentiment—driven by elevated crude prices and global uncertainties stemming from tensions in West Asia—tempers near-term pricing moves.

- URVI MALVANIA

Analysts, however, suggest the delay is tactical rather than structural, with the fundamental drivers for tariff adjustments remaining firmly in place. At the core of the argument is the ongoing need for pricing discipline in a capital-intensive sector.

“VI’s need for tariff repair and strategic share sales by Jio’s investors would be the drivers of biennial tariff hikes subsequently,” analysts from Ambit said. The expectation is that periodic increases will continue over the long term, as operators balance financial viability with affordability.