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Informist, Friday, Feb. 14, 2025

MUMBAI – Telecom stocks are likely to be range bound next week as they consolidate after the end of the earnings season, Piyush Pandey, research analyst at Centrum Broking, said. He expects Bharti Airtel to be among the top perfomers and keep growing at a steady pace. 

Vodafone Idea's earnings might improve in the coming quarters boosted by an increase in average revenue per user and tariff hikes in shorter intervals, brokerage reports said. However, the outlook for the company hinges on its ability to raise funds soon as it is critical for the company to be able to invest in networks and return to a modest subscriber growth path, Nomura said in a post-earnings brokerage report. The global brokerage pegs its average revenue per user to grow by 13% during 2026-2027 (Apr-Mar) and the pace of subscriber loss to decline in FY26. The company expects tariff hikes at shorter intervals given the weak return on capital across the sector, Centrum Broking said. 

The Supreme Court rejected review petitions filed by Bharti Airtel, Vodafone Idea, and other telecom operaters regarding relief from its adjusted gross revenue dues. The Department of Telecommunications has estimated Bharti Airtel's dues at INR 439.80 billion, way higher than the company's estimate of INR 130.04 billion. The department has estimated Vodafone Idea's dues at INR 582.54 billion compared with the company's assessment of INR 215.33 billion. However, the development is along expected lines and is already priced in, Pandey said. 

Market leader Reliance Jio might face increased competetion from Elon Musk-backed Starlink's potential entry into the domestic market. While offering better speeds, there are concerns regarding its higher pricing, media reports said. Jio is unlikely to face much of a threat from Starlink due to competetive pricing, but will be beneficial in rural areas, Pandey said. 

State-owned Bharat Sanchar Nigam reported its December quarter earnings Friday where it reported a profit for the first time since 2007. The company reported a profit of INR 2.62 billion in Oct-Dec on the back of a reduction in finance costs and overall expenditure, as compared to a loss of INR 12.45 billion a quarter ago. 

TOP HEADLINES

* SC junks Bharti Airtel, Vodafone Idea pleas on miscalculation in AGR dues
* ITI net loss narrows QoQ to INR 671.2 million in Oct-Dec
* PRESS: RailTel to bid for another INR 5 bln of Kavach orders in Apr-Jun
* RailTel Corp gets INR 147-mln work order from Airports Authority of India
* Analyst Concall: Vodafone Idea says need more tariff hikes for future growth
* Bharti Airtel awards contract to Nokia, Qualcomm to expand 5G access devices
* Earnings Review: Vodafone Idea's loss narrows QoQ, lower than mkt estimate
* Earnings Outlook: Vodafone Idea to post loss, but higher ARPU to aid revenue
* PRESS: Fin min rejects proposal for PSUs taking haircut on MTNL loans
* Analyst Concall: Bharti Airtel to exit global pdt offering in B2B segment
* 3M India Oct-Dec net profit falls 15.9% on year to INR 1.14 billion

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

Reported by Akash Mandal

Edited by Deepshikha Bhardwaj

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