According to a report by Motilal Oswal Financial Services Limited, the revenue of India’s telecom industry increased eight per cent (quarter-on-quarter) to Rs 674 billion (13 per cent growth year-on-year) in the second quarter (Q2) of financial year 2024-2025 (FY25), mainly driven by tariff hikes.
Driven by three rounds of smartphone tariff hikes, India’s quarterly telecom revenue has almost doubled (up 96 per cent) since September 2019, implying 14 per cent five-year industry revenue compounded annual growth rate (CAGR).
As per the report, the telecom industry’s average revenue per unit (ARPU) has almost doubled from Rs 98 in September 2019 to Rs 193 in September 2024, driven by tariff hikes. However, as a result of sharp tariff hikes, the industry’s subscriber base at 1.15 trillion in September 2024 is lower than September 2019 levels (1.17 trillion).
The report highlighted that among telcos, Bharti Airtel has been the biggest beneficiary of tariff hikes with a 2.2 times increase in implied ARPU, registering a 17 per cent five-year CAGR. Over the reporting period from 2019-2024, Bharti’s revenue has increased 2.6 times, implying 21 per cent five-year revenue CAGR, with incremental revenue market share significantly higher at 48 per cent.
