Telecom Stocks Outlook
Seen rising near term; tariff hikes seen as trigger
This story was originally published at 22:20 IST on 6 February 2026
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MUMBAI – Telecommunication stocks are expected to rise in the near term. Bharti Airtel reported its December quarter earnings on Thursday. The company posted a marginal sequential decline in its consolidated bottom line for the December quarter because of a one-time cost on account of the new labour codes. The tariff hikes are likely to be an impetus for telecom companies, but are not expected to come through till the listing of Jio Platforms Ltd., according to an analyst at a large broking firm.
Jio Platforms Ltd.'s listing, which is expected to take place in the first half of 2026, could even take longer considering the complex nature of the process to get listed. This makes Jio's listing important, especially for Bharti Airtel Ltd. as tariff hikes are seen as a major trigger for the company.
Bharti Airtel released its December quarter earnings on Thursday. The company's consolidated bottom line for the December quarter declined 2.4% sequentially and over 55% on year to INR 66.31 billion. The company missed analysts estimates of INR 73.08 billion. Its consolidated top line rose 3.5% sequentially and nearly 20% on year to INR 539.82 billion. The company reported a one-time cost of INR 2.57 billion due to the change in labour codes. However, even excluding the one-time cost, the company still missed analysts' estimates.
Bharti Airtel's revenue was largely in line, with the company managing to report healthy growth in its free cash flow, according to the analyst. When asked about the company's net profit coming under estimates, the analyst said the company has a very volatile history when it comes to its net profit and the metric does not provide the full picture. The company's free cash flow is a better metric to understand the company's performance, according to the analyst. The company also reported a reduction in its debt, which reinforces the positive outlook on the company.
Bharti Airtel reported an operating cash flow of INR 159.18 billion for the December quarter. Bharti Airtel is committed to stepping up investments in data centres to reach a capacity of 1 gigawatt over the next 3–4 years, up from 120–130 megawatts currently, the management said in a post-earnings conference call Friday. This will take its market share to 25% from 12% currently, the management added.
Shares of Bharti Airtel look good with its support on the higher end at INR 1,982 and resistance at INR 2,150, according to Rupak De, technical analyst at LKP Securities. Investors are likely to take a buy-on-dip approach for the stock Vodafone Idea Ltd., with the stop loss at INR 9.70. On a rise, the stock is likely to face resistance at INR 13, according to the analyst.
TOP HEADLINES
* Earnings Review: Bharti Airtel Q3 PAT down QoQ on one-time cost; misses view
* Earnings Review: Bharti Hexacom Q3 PAT rises sharply on fall in expenses
* Earnings Outlook: Bharti Airtel Q3 PAT seen outpacing sales on higher ARPU
* Earnings Outlook: Bharti Hexacom Q3 PAT seen up on higher wireless ARPU
* Analyst Concall: Capex to stay elevated next 2-3 yrs, says Indus Towers mgmt
* Tata Comm CFO Kabir Ahmed Shakir resigns; cessation date yet to announce
* HFCL Oct-Dec consol PAT rises 44% QoQ to INR 976 million
* Earnings Review: Indus Towers PAT dn 3% QoQ on higher expenses; misses view
* Railtel Corp Oct-Dec PAT falls 18% QoQ as sales fall 4%
* BUDGET: FY27 telecom receipts seen at INR 1.17 tln, dn 34% from FY26
* Telecom Stocks Outlook: Seen mixed near term; Jio's listing seen as trigger
* Earnings Outlook: Indus Towers Q3 PAT seen down on high base of write backs
* CARE ups Vodafone Idea bk facilities outlook to 'positive', reaffirms 'BBB-'
* Tata Communications launches AI-ready suites for enterprises
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 | 2,038.40 | 3.50 | 2086.70 | 1964.30 |
| Mahanagar Telephone Nigam | 31.18 | (-)8.00 | 32.50 | 30.10 |
| Reliance Industries | 1450.80 | 4.00 | 1465.00 | 1426.40 |
| Tata Communications | 1552.70 | (-)1.10 | 1576.60 | 1520.00 |
| Tata Teleservices Maharashtra | 43.77 | (-)4.10 | 45.00 | 42.40 |
| Vodafone Idea | 11.12 | (-)0.50 | 11.50 | 10.70 |
| Index | Levels | |||
| Nifty 50 | 25693.70 | 1.50 | 25841.90 | 25417.80 |
| S&P BSE Sensex | 83580.40 | 1.60 | 84059.40 | 82685.90 |
End
Reported by Akshat Saksena
Edited by Akul Nishant Akhoury
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