Telecom Stocks Outlook
Seen rangebound next week, earnings seen as trigger
This story was originally published at 21:18 IST on 16 January 2026
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MUMBAI – Shares of telecom companies are likely to stay rangebound in the near term. Earnings are expected to be the key trigger for telecom companies in the near term, according to analysts. Apart from earnings, investors will track developments on Vodafone Idea's dues and the eventual listing of Reliance Industries' Jio Platforms, they said.
On Friday, the BSE Telecommunication index closed 0.6% lower at 3021.34 points. The index is expected to find support at 2920-2900 points and resistance at 3100-3150 points, according to Jatin Gedia, vice president of technical research at Teji Mandi Investment Technologies. The telecom sector is unlikely to see a significant improvement in earnings, as the last time the industry saw a tariff hike was in July 2024.
Bharti Airtel is expected to report a net profit of INR 73.08 billion in the December quarter, up nearly 8% on quarter and 1% on year, according to the average of estimates from six brokerages. The company's revenue is expected to rise by more than 3% sequentially and nearly 20% on year to INR 539.34 billion. Vodafone Idea is expected to report a net loss of INR 65.63 billion for the December quarter, according to the average of estimates from six brokerages. The company reported a loss of INR 55.62 billion in the September quarter and INR 66.09 billion in the year-ago quarter. Its revenue is expected to rise slightly on quarter and 1% on year to INR 112.40 billion. Reliance Jio reported a net profit of INR 71.73 billion for the December quarter, up 3% on quarter. The company's revenue came in at INR 327.51 billion, up 3% on quarter. The company's average revenue per user for the quarter was INR 213.7 per month, up from INR 211.4 in the previous quarter.
On tariff hikes, the analyst said they ideally should have been implemented, given that four to five quarters have passed since the last hike. The analyst said there are two possibilities: either a tariff hike will occur before Jio's listing, or the company will list with a promise of near-term tariff hikes. "... my sense is that if it were to happen, it would've happened by now, which means you might see a tariff hike only in FY27," the analyst said.
On Vodafone Idea, the analyst said that of the INR 2.15 trillion dues, INR 870 billion might be restructured to INR 400 billion. This would translate into relief of roughly INR 400 billion–INR 450 billion. However, as the company also has spectrum dues to pay, the relief alone will not be sufficient. It will have to look for alternative sources of funding to stabilise operations, arrest customer churn and roll out competitive 5G services to match peers.
Telecom operators, including Bharti Airtel and two Tata group units, are contemplating collective representation to seek similar treatment for their adjusted gross revenue liabilities, similar to that given to Vodafone Idea, according to a report in The Economic Times. Regarding whether the government will provide the other operators with equitable treatment, the analyst said the government was "protecting its interests" because it holds a 49% stake in the company. The reasons behind the preferential treatment given to Vodafone Idea are the government's stake in the company and its interest in maintaining the sector competitive with a '3+1' structure, the analyst said.
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The following are the resistance and support levels for key telecom stocks for next week as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharti Airtel | 2,016.40 | (-)0.50 | 2052.60 | 1970.60 |
| Mahanagar Telephone Nigam | 33.63 | (-)2.10 | 34.10 | 33.30 |
| Reliance Industries | 1457.90 | (-)1.20 | 1489.20 | 1439.40 |
| Tata Communications | 1754.60 | 0.70 | 1787.50 | 1725.70 |
| Tata Teleservices Maharashtra | 46.00 | (-)1.50 | 46.90 | 45.40 |
| Vodafone Idea | 10.82 | (-)3.90 | 11.20 | 10.60 |
| Nifty 50 | 25694.35 | 0.00 | 25954.50 | 25532.30 |
| S&P BSE Sensex | 83570.35 | (-)0.00 | 84399.10 | 83042.10 |
End
Reported by Akshat Saksena
Edited by Saji George Titus
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