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Informist, Friday, Jul. 11, 2025

MUMBAI – The direction of telecom stocks are likely to be decided by June quarter corporate earnings and the overall sentiment in the market, analysts said. Currently, earnings are the only visible trigger for the sector, with Tata Communications set to report uts latest quarter results Thursday.

Next week, Bharti Airtel may see some bounce back after declining nearly 5% this week, and ended lower for four consecutive sessions in a weak market. The stock is likely to move in a range of INR 1,895-INR 1,965 during the week. Vodafone Idea also fell 3% during the week and is expected to move in a range of INR 7.00-INR 8.00 in the coming week. On Friday, Bharti Airtel ended 2.1% lower at INR 1,921.90 and Vodafone Idea closed 2.2% lower at INR 7.17.

During the week, global brokerage UBS downgraded Bharti Airtel to 'sell' from 'neutral' and kept a target price of INR 1,970. UBS noted while it has factored in a 10–12% tariff hike late 2025-26 (Apr-Mar), the timing of such an increase remains uncertain. The brokerage said lower-end tariffs are higher than those in other emerging markets, thus limiting room for further hikes. UBS also flagged the stock's expensive valuation.

The brokerage also downgraded Vodafone Idea to 'neutral' from 'buy' with a target price of INR 8.50 on the back of expensive valuations and similar risks regarding tariff hikes as Bharti Airtel.

Meanwhile, Elon Musk's Starlink received final approval from India's space regulator to launch satellite broadband services in the country, according to Moneycontrol. However, it must still acquire spectrum before rolling out commercially. While Starlink's services will increase competition in the market, it is unlikely to disrupt the existing satellite communications market majorly due to its higher pricing, analysts said.

Tata Communications will report its June quarter earnings this week. The company is expected to clock a consolidated net profit of INR 1.52 billion for the quarter, plummeting 19% sequentially due to weakness in services and technology solutions segments amid continued slowdown in the automotive segment. Its top line is seen falling 6% on quarter to INR 12.11 billion. The company is expected to report its highest ever sequential fall in both top line and bottom line since November 2023, when it debuted in the stock market.

TOP HEADLINES

* RailTel Corp gets INR-174.8-mln work order from Chhattisgarh govt
* ARPU per month of wireless users rises 17% to INR 174.46 in FY25: TRAI
* RailTel gets letter of intent of INR 970 mln from Central Warehousing Corp
* HC refuses to restrain Xiaomi in patent infringement case
* TRAI seeks views on allowing limited use of foreign telecom cos' SIM cards

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 Subhojit Sarkar

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