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Informist, Friday, Jul. 25, 2025

MUMBAI – Shares of telecommunication companies are likely to keep consolidating in the near term, with market activity turning stock-specific instead of sectoral bets as the June quarter earnings flow in. The overall weakness in the market over the past few weeks may also weigh on these stocks, analysts said.

Next week, telecom stocks are likely to track the overall market, analysts said, amid lack of sector-specific cues. Bharti Airtel is likely to move in a range of INR 1,900-INR 1,950 next week, a technical analyst at a domestic brokerage said. The stock rose nearly 2% this week after declining for three straight weeks. Vodafone Idea is likely to move in a range of INR 7.00-INR 8.00, having fallen nearly 7% this week. On Friday, Bharti Airtel closed 0.1% higher at INR 1,937.90, while Vodafone Idea closed 2.3% lower at INR 7.20.

"Bharti, in its FY25 annual report, reiterated the need for tariff repair in the India wireless business, amidst limited 5G monetisation, to support the long-term sustainability of the industry (with continued high capex requirements) and ensure sustainable improvement in the industry's RoCE (return of capital employed)," JM Financial said in a report Thursday. "...the management believes its premiumisation strategy provides considerable opportunity for healthy upgrades given low-level postpaid penetration (6% in India), and as over 200mn feature phone users are yet to upgrade to smartphones in India," it added.

The government introduced the draft National Telecom Policy this week, which aims to incentivise telecom operators for using indigenously designed and manufactured equipment. Analysts see the move potentially boosting telecom hardware makers such as Tejas Networks and HFCL. 

The proposal builds on the 2018 National Digital Communications Policy and aims to double the telecom sector's GDP contribution, and create over a million jobs by 2030. It also aims to attract investments of INR 1 trillion in the sector annually. The policy proposes to ensure ensure universal 4G coverage and widespread 5G access by 2030, and also promises affordable internet, wider fibre deployment, and 10o million fixed broadband connections to households. Analysts said the policy may bridge the gap between Indian telecom equipment makers and global leaders such as Ericsson and Cisco. 

Analysts also said the June quarter earnings will decide the direction of telecom stocks going ahead. No telecom company is set to release its earnings in the coming week. Bharti Airtel and Vodafone Idea have not announced their earnings dates yet.

TOP HEADLINES

* HFCL consol net loss narrows QoQ to INR 322.4 million in Apr-Jun
* RailTel Corp gets order worth INR 402 mln from Central Coalfields
* Tanla Platforms Apr-Jun consol PAT rises 0.9% QoQ to INR 1.18 billion
* Tata Tele Maha net loss widens QoQ to INR 3.25 bilion in Apr-Jun
* SC upholds order to reject stamp dept penalty against Vodafone Idea Telecom
* Tata Comm, Amazon Web Services to enable advanced AI-ready network in India
* Route Mobile CEO Gautam Badalia resigns, effective Thu
* Analyst Concall: Tata Comm sees single-digit growth in core connectivity ops

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 Avishek Dutta

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