ARPU gains, dividend trigger for Bharti Airtel as telecom enters new phase

Airtel, with industry-leading ARPU and subscriber growth, may also see a 60 basis points (bps) growth in operating profit margin

The telecom industry may be moving into a new phase. After several years of consolidation, the three private telecom operators may report 5-6.5 per cent quarter-on-quarter (Q-o-Q) increase in average revenue per user or ARPU in third quarter of financial year 2025 (Q3FY25), as the full effect of tariff hikes in July kicked in.

 

Pricing power is apparent with only 3+1 players (including BSNL).

 

Reliance Jio lost around 2 million subscribers Q-o-Q post-hikes, while Bharti Airtel may add around 3 million subscribers Q-o-Q. Vodafone Idea or VIL lost around 4 million customers Q-o-Q. Data usage per customer remains robust.

 

Reliance