Indus Towers, Vodafone Idea Surge as Nomura Boosts Telecom Sector Outlook Ahead of Earnings Season
Shares across the telecom sector showed varied movement on Tuesday, with strong operational guidance from Nomura lifting key stocks. Nomura retained a positive outlook for the industry ahead of the upcoming June-quarter earnings season. This bullish sentiment saw Indigo Towers and Vodafone Idea climb significantly in afternoon trading.Indus Towers shares rose 2.51% to Rs 392.40. Simultaneously, Vodafone Idea gained 2.60%, reaching Rs 14.21. However, Bharti Airtel bucked this positive trend, slipping by 1.42% and settling at Rs 1,898.40 in the trading session.
Bharti Airtel's Broad-Based Delivery Drives Revenue Growth
Nomura’s 1QFY27 preview highlighted that Bharti Airtel is sustaining "broad-based delivery." The brokerage expects consolidated revenue to increase sequentially by 4%, reaching Rs 576.2 billion, and a year-on-year rise of 16%. EBITDA growth is also projected significantly, expected to increase 5% quarter-on-quarter and 18% year-on-year to Rs 329.7 billion.The report detailed the performance of Airtel's India wireless business, noting a "healthy subscriber addition" target of 4 million. Furthermore, a modest improvement in ARPU is anticipated, projected to rise from Rs 257/month in 4QFY26 to Rs 260/month.
Africa Market Stands Out for Bharti Airtel Growth
The African market segment was singled out by Nomura as the "standout driver of consolidated growth" for Bharti Airtel. This strength is attributed to sustained strong subscriber additions within the region. The favorable FX movement observed in the African markets is also noted as a key contributor to this positive momentum.Vodafone Idea Stabilizes Subscriber Base and Improves ARPU
For Vodafone Idea, Nomura projects that the company's subscriber base has stabilized following several quarters of decline. The projected end-of-period subscriber count is set at 193.2 million, marking a broadly flat change quarter-on-quarter (+0.35mn).The operator is expected to see revenue rise by 2% sequentially, reaching Rs 115.1 billion. This growth projection is primarily driven by an improvement in the ARPU metric within the company's operations.
Indus Towers Maintains Steady Growth and Operational Efficiency
Nomura’s analysis of Indus Towers projected steady tower additions for the upcoming quarter. Revenue is estimated at Rs 82.5 billion for the June quarter, representing a sequential rise of 2%. The brokerage expects EBITDA to reach Rs 45.4 billion, maintaining stable margins near 55%.The company is expected to add approximately 3,000 towers during the period under review. Indus Towers’ operational health is supported by a maintained tenancy ratio of 1.62x according to the report.
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