Jio IPO, Tariff Hikes & AGR Relief: Can Telecom Stocks Deliver Big Returns In 2026?

Telecom is emerging as one of the most compelling sectoral stories for 2026. Jefferies believes the upcoming Jio IPO could be a game-changer, reinforcing tariff discipline across the industry. Mid-year tariff hikes, likely around June 2026, combined with stable capex and rising revenues, are expected to significantly boost earnings, free cash flows and RoCE for telecom players. Potential AGR relief could further re-rate stocks like Indus Towers, making them key indirect beneficiaries. With India still among the world’s lowest ARPU markets, steady price hikes and customer migration to higher-value plans look sustainable. Jefferies’ top pick remains Bharti Airtel with a target price of ₹2,760, while Indus Towers carries a Buy call with a ₹510 target.