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Informist, Friday, Nov. 7, 2025

MUMBAI – Telecom stocks are likely to trade in a range next week and track the overall market, with sentiment remaining weak amid the correction from recent highs. Vodafone Idea will be in focus, with the beleaguered telecom company slated to report its September quarter earnings on Monday. 

The debt-ridden company's consolidated net loss is expected to widen sequentially in the quarter due to continued subscriber base declines. This will mark the 29th consecutive quarter the company has reported a net loss. The company's top line for the quarter is expected to see a slight sequential uptick driven by higher average revenue per user, though this will be largely offset by the continued decline in subscriber base. Its average revenue per user for the reporting quarter is expected to rise 0.6-2.4% sequentially. 

In a positive development for the struggling company, the Income Tax department on Monday withdrew its plea from the Supreme Court, in which it had sought INR 37 billion from Vodafone India Services regarding the sale of the telecom company's call centre business to Hutchison Whampoa Properties (India). The stock gained this week after the Supreme Court allowed the government to consider relief for all pending adjusted gross revenue dues of the company. Despite a blip midway through the week due to confusion over the top court's written order, the stock ended the week 10% higher. 

The stock is expected to move in a range of INR 9.0 to INR 10.50 next week, a technical analyst at a domestic brokerage said. On Friday, the stock closed at INR 9.61 on the National Stock Exchange, up nearly 4%. 

Bharti Airtel announced its second-quarter results this week. The company reported a consolidated net profit of INR 67.92 billion, up 14% on quarter, and above analyst estimates of INR 64.61 billion. Its revenue for the quarter rose 5% sequentially to INR 521.45 billion, higher than the Street's view of INR 505.36 billion. The company's earnings before interest, tax, depreciation, and amortisation margin rose 50 basis points on quarter to 57.4%, while average revenue per user rose 10% on year to INR 256.  

Post earnings, Jefferies raised its target price on the stock to INR 2,635 from INR 2,500 while maintaining a 'buy' rating. The company beat consensus on multiple fronts and its India mobile segment saw a steady growth with a positive surprise on margins during the reporting quarter, NDTV Profit cited the global brokerage as saying on Tuesday. 

"We maintain BUY as we believe industry's wireless ARPU will grow at 13% CAGR (compound annual growth rate) in the next 3 years, driven by regular tariff hike and multiple premiumisation strategies... further, there is improved visibility of the next tariff hike of 15% in the next few months (and regular tariff hikes thereafter) due to Jio's likely IPO by 1HCY26 (Apr-Sep), coupled with the government's intent to ensure a '3+1' player market," JM Financial said on Bharti Airtel on Tuesday.

The stock is likely to move in a range of INR 1,925-INR 2,100 next week, a technical analyst at a domestic brokerage said. Friday, the stock closed over 4% lower at INR 2,001.20 on the National Stock Exchange, weighed down by a likely block deal executed by Pastel, a subsidiary of Singapore Telecommunications.

TOP HEADLINES

* RailTel Corp gets orders worth INR 795.67 mln from Gujarat, UP govt bodies
* Earnings Outlook: Vodafone Idea Q2 net loss may widen QoQ on subscriber loss
* Moody's ups Bharti Airtel rtg to Baa2 on better credit profile, mkt shr gain
* Analyst Concall: Bharti Airtel arm to build AI hub data centre in Google deal
* Route Mobile posts Q2 consol net loss on INR 1.4-bln one-time cost
* Tax dept withdraws INR 37 billion tax demand case vs Vodafone India from SC
* Bharti Airtel to buy up to 5% additional stake in subsidiary Indus Towers
* Earnings Review: Robust customer adds, ARPU boost Bharti Hexacom Q2 sales
* Earnings Review: Bharti Airtel Q2 consol PAT up 14% QoQ, beats Street view
* 3M India Jul-Sept PAT rises 43% YoY to INR 1.91 billion
* SC rejects plea for svc tax vs Bharti Airtel on free calls for employees
* Govt can consider reassessment of AGR dues of Vodafone Idea till FY17 - SC
* Transactions from Reliance Comm Infra to Reliance HR not fraudulent- NCLT

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 Saji George Titus

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