Telecom Tsunami! India's Gross Revenue Shatters Records, Nears ₹1 Lakh Crore Mark!

Telecom Sector Reaches Record Revenue High

The Indian telecom sector has reported its highest-ever quarterly gross revenue, reaching ₹99,828 crore in the September 2025 quarter (Q2 FY26). This represents a substantial year-on-year increase of 9.19% from ₹91,426 crore in the same period last year.

Key Financial Growth

• The sector's gross revenue has neared the ₹1 lakh crore mark for a single quarter, signalling strong operational performance and subscriber growth.
• Adjusted Gross Revenue (AGR), the revenue on which government charges are levied, also saw a significant uptick.
• AGR rose by 9.35% year-on-year to ₹82,348 crore in Q2 FY26, compared to ₹75,310 crore in Q2 FY25.

Major Players' Performance

• Key telecom operators, including Reliance Jio, Bharti Airtel, Vodafone Idea, and BSNL, collectively contributed around 84% to the total AGR, amounting to ₹69,229.89 crore.
• Reliance Jio experienced robust growth, with its AGR increasing by approximately 11% to ₹30,573.37 crore.
• Bharti Group (Bharti Airtel) posted an impressive 12.53% rise in AGR, reaching ₹27,720.14 crore.
• Vodafone Idea reported an AGR of ₹8,062.17 crore.
• BSNL saw a modest increase of 1.19% in its AGR, reaching ₹2,020.55 crore.
• Tata Teleservices recorded a 7.06% growth in AGR, amounting to ₹737.95 crore.

Government Revenue Boost

• The increase in AGR has positively impacted government collections.
• The government's revenue from licence fees saw a 9.38% year-on-year increase, collecting ₹6,588 crore in Q2 FY26.
• Revenue from spectrum usage charges also grew by 5.49% YoY, amounting to ₹997 crore for the quarter.

Importance of the Event

• This record revenue highlights the resilience and growth trajectory of the Indian telecom sector.
• It suggests improving financial health for operators, potentially leading to better services, infrastructure investment, and increased profitability.
• The growth in AGR is crucial for both the companies and the government's revenue streams.

Impact

• Rating: 8/10
• The strong revenue growth is highly positive for telecom companies listed on stock exchanges, potentially leading to improved investor sentiment and stock performance.
• It signals a healthy competitive environment and sustained demand for digital services in India.
• Increased government collections from licence fees and spectrum charges contribute positively to fiscal revenues.

Difficult Terms Explained

• Gross Revenue: The total income generated by a company from all its business operations before any deductions or allowances.
• Adjusted Gross Revenue (AGR): This is a specific definition used in the Indian telecom sector. It is the revenue on which the government levies license fees and spectrum usage charges. It is calculated by deducting certain items from the gross revenue.