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Informist, Friday, Dec. 19, 2025

MUMBAI – Stocks of telecommunication companies are likely to perform well in the coming week, say analysts. Bharti Airtel may rise to INR 2,200 after its breakout beyond INR 2,028, Anshul Jain, technical analyst at Laxmishree Investments and Securities, said. Rupak De, senior analyst with LKP Securities, said the company's recovery could continue, with resistance seen between INR 2,100 and INR 2,120. He sees support for the stock at INR 2,050. 

Vodafone Idea has broken past INR 10.74 and may now cross INR 12, Jain said. Tata Communications is expected to trade in the range of INR 1,813-INR 1,913. A breakout above this range could see the stock going up to INR 2,200-INR 2,400, according to Jain.

Global brokerage Morgan Stanley expects the telecom sector's repair phase to continue in the near term, CNBC-TV18 reported. The broking firm sees several drivers for the industry's organic growth in the medium term. It expects average revenue per user to grow in a mid-single digit. It also expects to see telecom tariffs being raised in the first quarter of the financial year 2026–27 (Apr-Mar), as per CNBC-TV18. 

Analysts expect telecom tariffs to rise by 15–18% over the next two years. Higher tariffs are seen to be necessary to push average revenue per user to INR 300, which would allow the industry to earn reasonable returns on its investment. Low tariffs and single-digit returns could make it difficult for companies to invest in future technologies such as sixth-generation networks. Telecom companies have already started raising funds to strengthen their balance sheets.

This week, Vodafone Idea's wholly-owned subsidiary, Vodafone Idea Telecom Infrastructure, raised INR 33 billion through non-convertible debentures to repay dues to the parent company. The funds will be used for Vodafone Idea's capital expenditure plans. Bharti Airtel, meanwhile, approved the first and final call for the remaining INR 157.41 billion to be raised through the rights issue it had announced in 2021. The proceeds will be used to service interest costs and for general corporate purposes. The company expects its India business to become "effectively net debt-free" in the near term, barring dues to the Department of Telecommunications and finance lease obligations.

Union Minister of Communications Jyotiraditya Scindia said India's telecom exports rose 72% over five years to INR 184.06 billion in FY25, according to a report by The Economic Times. He also said 767 of the 778 districts in the country have been connected with the 5G network. The country's 5G subscribers are expected to rise to 420 million by 2026 and 1 billion by 2030, from nearly 360 million currently, the report quoted him as saying.

Morgan Stanley raised its target price on Bharti Airtel by 20% to INR 2,435 while maintaining its "overweight" stance, CNBC-TV18 reported. The revised target implies an upside of 16% from Friday's close. The brokerage expects mid-single-digit growth in average revenue per user to drive double-digit growth in Bharti Airtel's India earnings before interest, tax, depreciation, and amortisation, while return ratios are likely to improve to around 20%.

Shares of Bharti Airtel ended slightly higher Friday at INR 2,097.70 on the National Stock Exchange. Shares of Vodafone Idea closed nearly 6% higher at INR 11.96 and those of Tata Communications ended nearly 2% up at INR 1,824.70. The S&P BSE Telecommunication Index closed over 1.5% higher at 3129.07 points. 

TOP HEADLINES

* Indus Towers arm incorporates two subsidiaries to invest in African markets
* Bharti Hexacom appoints Karthikeyan Velu as CFO from Jan 1
* Bharti Airtel approves final call to raise INR 157 bln via rights issue
* Bharti Airtel promoters seek to amend existing shareholders' agreement
* Gopal Vittal to take charge as Bharti Airtel executive vice-chairman Jan 1
* RailTel Corp gets order for INR-268.85-mln project from port in Tamil Nadu
* SC upholds Delhi Metro order to Indus Towers for wireless mobile connectivity
* RailTel Corp gets INR 1.48-bln order to supply servers, security devices
* PRESS: Vodafone Idea may get 4-5 year interest-free moratorium on AGR dues
 

Following are the resistance and support levels for key telecommunication stocks for next week, as per calculations based on their prices on the NSE:

End

Reported by Akshat Saksena

Edited by Rajeev Pai

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