Indus Towers and Vodafone Idea shares rose on July 8, 2026, after Nomura projected steady growth and stabilization for the sector ahead of the June-quarter earnings. While analysts pointed to stable tower additions and subscriber trends, Bharti Airtel shares saw a decline.
Indian telecom stocks showed a mixed performance on Tuesday as investors reacted to a sector assessment from brokerage firm Nomura ahead of the June-quarter earnings season. Indus Towers shares increased by 2.51% to ₹392.40, and Vodafone Idea climbed 2.60% to ₹14.21. Meanwhile, Bharti Airtel saw a slight decline, falling 1.42% to ₹1,898.40.
Subscriber Trends and Financial Projections
For the first quarter of fiscal year 2027, Nomura anticipates that Bharti Airtel will continue to see strong performance across its Indian and African operations. The brokerage projects consolidated revenue for Bharti Airtel to reach ₹576.2 billion, representing a 16% year-on-year increase. Nomura also forecasts an improvement in the company's average revenue per user (ARPU) to ₹260, up from ₹257 in the previous quarter. The company has historically relied on consistent subscriber growth in India to drive its top-line performance, though maintaining these levels requires significant capital spending on network infrastructure and 5G deployment.
Vodafone Idea, which has faced long-term pressure from declining subscriber numbers and high debt, is showing signs of stabilization. Nomura estimates its subscriber base at 193.2 million, a modest sequential increase of about 0.35 million. Revenue is projected to grow by 2% sequentially to ₹115.1 billion, driven mainly by ARPU expansion rather than massive new user additions. For investors, the sustainability of this stabilization remains a primary monitorable, especially given the company's historical financial challenges and the competitive intensity in the Indian telecom market.
Operational Outlook for Indus Towers
Indus Towers is expected to report a revenue of ₹82.5 billion for the quarter, a 2% increase compared to the previous period. Nomura anticipates that the company will add approximately 3,000 towers, maintaining a tenancy ratio of 1.62x. While tower additions signal expansion, the company faces continued pressure from revenue dilution per tower. Investors should track how the company balances its tower expansion with potential changes in tenancy as telecom operators adjust their network spending.
Beyond these projections, the telecom sector continues to face risks related to high leverage, particularly for Vodafone Idea, and the ongoing capital requirements for maintaining and upgrading network capacity. The final impact of these trends on stock valuations will likely become clearer once companies release their official quarterly results and management provides commentary on future debt servicing, network investment plans, and pricing strategy.