Bharti Airtel shares gained 3% on Tuesday as investors anticipate industry-wide tariff hikes by December 2026. The telecom major is shifting its focus toward high-growth areas like enterprise solutions and data centers while normalizing capital spending. Analysts expect the company to maintain growth momentum despite the upcoming Jio Platforms market debut, with a continued focus on increasing average revenue per user through premium service plans.
Bharti Airtel shares traded at ₹1,974 on Tuesday, rising 3% as investors factored in anticipated industry-wide tariff changes. This movement follows a 12% rise in the stock throughout October, highlighting a shift in investor interest toward the telecommunications sector.
A key driver for this optimism is the expected increase in mobile tariffs. Analysts at Motilal Oswal project a 15% hike in smartphone tariffs by December 2026. This move is considered essential for the industry to move beyond the period of unlimited 5G data, which has made it difficult for companies to earn better returns on their network investments. While past delays in raising prices had weighed on the stock earlier this year, current expectations suggest the market now believes a price increase is imminent.
The company is also changing how it allocates money. As the need for massive 5G network spending starts to normalize, Bharti Airtel is focusing on other growth areas like fiber infrastructure, enterprise business services, and data centers. By pushing more customers toward postpaid plans and premium 4G and 5G services, the company aims to increase the average revenue it earns from each user. This strategy aims to reduce dependence on pure mobile data volume growth.
Investors have also noted the company’s history of paying consistent dividends, which has provided some stability to its valuation. Brokerage firm Jefferies has maintained a positive view on the stock, setting a target price of ₹2,400. The firm argues that concerns regarding capital shifting away toward the upcoming Jio Platforms public debut may be exaggerated, given the limited initial free float expected.
However, the telecom sector continues to face risks related to intense competition and regulatory changes. The entry of Jio Platforms into the public market will create a new benchmark for sector valuation. For investors, the most important factors to watch will be the actual timing and scale of the expected tariff hikes, as well as the company’s ability to maintain its market share against rivals while expanding its enterprise and data center businesses.