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Mobile Recharges Likely to Get Costlier From June 2026: Jefferies
Jefferies: A 15% increase in mobile tariffs is possible by June 2026. According to Jefferies' report, prices will rise due to the Jio IPO and revenue growth. Vodafone Idea will also need a 45% hike to repay its debt.
Mobile recharge prices could become higher from June 2026. According to a Jefferies report, Indian telcos are once again gearing up for a significant increase in mobile phone rates. Analysts have estimated a possible rise of around 15% in mobile service prices by June 2026.
Such a rise would happen just two years after the last tariff rise. Recently, a report from brokerage firm Jefferies suggests that this is imperative for Reliance Jio’s long-awaited IPO and promoting overall revenue growth in this industry.
According to a report prepared by Jefferies equity analysts Akshat Agarwal and Ayush Bansal, Jio's IPO is highly likely to launch in the first half of 2026. Analysts believe that the proposed IPO will not only boost the valuation of the entire telecom sector but also lay the groundwork for an increase in mobile service rates.
The report estimates that Jio could increase its mobile tariffs by 10 to 20%. The primary objective is to bring its valuation closer to that of rival Bharti Airtel and provide investors with a double-digit internal rate of return.
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This potential tariff increase will directly impact telecom companies' earnings. The report estimates that the sector's revenue growth rate will more than double in fiscal year 2027 (FY27) compared to fiscal year 2026. While this growth is expected to be 7% in FY26, it is expected to reach 16% in FY27.
Average revenue per user (ARPU) is also expected to see a healthy 14% growth in FY2027, driven by a 15% headline tariff hike in June 2026. However, the report also cautions that new subscriber additions may slow down slightly due to higher tariffs.
