Operators witness growth in Q2 FY26 while Vi’s market share slips near record low, says report

According to a research report by Jefferies, Bharti Airtel, Reliance Jio, and Vodafone Idea Limited (Vi) recorded solid revenue growth in the fiscal second quarter (Q2) of 2025-2026; however, Vi saw its market share drop to a near all-time low.

Airtel delivered the strongest performance with a 12 per cent year-on-year (YoY) rise in revenue, followed by Jio with a 10 per cent increase, while Vi posted a 4 per cent growth YoY.

Further, Airtel’s revenue expansion was led by a 10 per cent improvement in average revenue per user (ARPU), while for Jio, a 6 per cent YoY increase in its subscriber base supported revenue growth. Vi’s revenues, in contrast, were up 4 per cent YoY due to an 11 per cent ARPU rise despite continued subscriber erosion, with its user base declining by 6 per cent YoY.

During Q2, annualised sector revenue reached a fresh peak of $34 billion, though it moderated by 10 per cent YoY due to July 2024 tariff hikes forming part of the comparative base.

The report estimates the sector’s revenue to grow at a 14 per cent compound annual growth rate (CAGR) to $45 billion over FY26-28E (estimated), with market shares for Airtel and Jio remaining largely stable.

Airtel retained its industry leadership with an ARPU of Rs 256, an increase of 2.2 per cent quarter-on-quarter (QoQ), in the quarter ended September 30, 2025. Jio’s ARPU rose 1.2 per cent to Rs 211.4, while Vi’s improved to Rs 167, supported by higher data usage and rising adoption of premium plans.

Additionally, Jio added 8.3 million subscribers in the quarter, taking its total user base to 506.4 million, whereas Airtel added 1.4 million customers, expanding its wireless base to 364.2 million. Vi, however, continued to lose users, reporting a net reduction of nearly 1 million subscribers.

As per the report, Airtel and Jio gained 70 basis points (bps) and 30bps market share, respectively, in Q2 FY26 compared to the same quarter last year. In metros, Airtel and Vi gained around 300bps and 100bps market share, respectively, in Q2 FY26 over Q2 FY25, while Jio saw a decline of nearly 400bps.

The report noted that Vi’s revenue growth in the July-September period was supported by a slowdown in subscriber losses, enabling better reflection of tariff hikes in its revenue performance.