More Stories

Informist, Friday, Feb. 27, 2026

MUMBAI – Shares of telecommunication companies are expected to be range-bound in the near term, analysts said. There are three major events that are key to the sector's performance in the medium term – likely tariff hikes, fundraising by Vodafone Idea, and the listing of Jio Platforms Ltd., they said. Shares of Bharti Airtel tumbled nearly 5% over the week amid concerns that the next round of tariff hikes may be pushed back due to delays in Jio's listing and the company's foray into non-banking financial services. 

The next round of tariff hikes is likely to take place only after the listing of Jio Platforms and is seen as crucial for other industry players, especially Bharti Airtel. However, the listing seems to have been marred by regulatory delays, as Jio Platforms would require an exemption to reduce its minimum public float to 2.5% instead of the mandated 5% due to its large valuation. This has delayed expectations of a tariff hike, weighing on Bharti Airtel's stock, according to an analyst at a domestic broking firm.  

Another reason for the weakness in Bharti Airtel's stock is its foray into non-banking financial services. This is completely different from its core business, raising concerns about the new venture's performance, given the company's inexperience in the field, according to the analyst. The company's decision to diversify into non-banking financial services might not sit well with its investors, the analyst said. 

The Reserve Bank of India had granted an NBFC licence to Airtel Money on Feb. 13. In July, Bharti Airtel had incorporated Airtel Money as a new step-down wholly owned subsidiary. The company will invest about INR 140 billion in the business, with another INR 60 billion coming from the promoter group Bharti Enterprises.

The investments in the non-banking financial company might be seen as a slight negative from a capital allocation perspective, as they are not part of the company's core telecom business, according to JM Financial. However, the infusion of INR 140 billion over the next few years is small, given the company's potential consolidated free cash flow of INR 600 billion to INR 700 billion and its current market capitalisation of around INR 12 trillion. Assuming the company can leverage the capital infused 5 times, the objective is likely to build a portfolio of over INR 1 trillion, the brokerage said.

On Vodafone Idea's capital expenditure plan of INR 450 billion over the next three years, the analyst said it is good enough to retain its current subscriber base. However, the major concern is the company's ability to win back its subscribers. Given the deep pockets of rivals Jio and Bharti Airtel, if Vodafone Idea engages in a price war by reducing its tariffs, its rivals will be more than equipped to reciprocate, he said.

The company's main challenge lies in maintaining its subscriber base and growing its average revenue per user, according to the analyst. After the last round of tariff hikes, the company saw a loss of subscribers and consumer down-trading. Consumer down-trading is a behavioural shift in which consumers consume less or switch to cheaper alternatives to save money. The revenue growth from a 20% tariff hike will be lower than it would have been around 5 years ago, the analyst said.

In the week ended Friday, the BSE Telecommunication index ended 3.8% lower at 2975.47 points. The index has near-term support at 2850 points, but if it fails to hold above that level, it could fall to 2750 points, according to Rishabh Srivastav, technical analyst at Lakshmishree Investment and Securities. The resistance for the index is seen at 3100 points. 

Bharti Airtel is expected to find support at INR 1,840-INR 1,800 and resistance at INR 1,950-INR 2,000, according to two technical analysts. The company's shares could fall as much as INR 1,800 if the stock does not sustain INR 1,840, according to Srivastav. Shares of Vodafone Idea are expected to find support at INR 9.70-INR 9.50 and resistance at INR 12-INR 12.50, according to the two analysts.

TOP HEADLINES

* Tata Communications' indirect US subsidiary BUC Mobile dissolved Feb 16
* Tejas Networks signs pact with NEC Corp to supply 5G 'massive MIMO' radios
* INDIA TODAY: ED attaches Anil Ambani's INR 37 bln Mumbai house in fraud case
* SC notice to customs dept on Xiaomi Tech's plea against INR 6.5-bln demand
* Airtel Money to get INR 200 bln as Bharti Airtel pushes NBFC pedal
* HFCL to join project led by IIT Delhi to research hollow-core fiber tech
* Tata Comm, RailTel Corp partner to advance next-gen digital infrastructure
* SC asks Sistema Shyam to pay reserve price to DoT from 2G spectrum case date
* Bharti Airtel, Zscaler partner for AI, cyber threat research centre in India

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:

End

Reported by Akshat Saksena

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.