Telcos to See Moderate Q4 Growth

PRIVATE TELCOS BHARTI Airtel, Vodafone Idea, and Reliance Jio are expected to report moderate growth in Q4FY25 led by stabilizing of the July tariff hike impact, and fewer days in the quarter, analysts said.

- URVI MALVANIA

Average revenue per user (ARPU) for the telcos is expected to be driven by premiumisation of the customer base, though it is partially likely to be offset by fewer days in the quarter, they added.

All three telcos have been reporting jumps in quarterly ARPU over the past few quarters as a result of the July 2024 tariff hikes, which raised the entry-level pack prices, and saw green shoots of attempts to monetise 5G services by Airtel and Jio.

"While Bharti and Vi saw the full flow-through of July'24 tariff hikes in Q3 itself, Jio will see residual gains in Q4," analysts from IIFL said.