Airtel, Vodafone Idea, Indus Towers & Bharti Hexacom: SBI Securities' Sunny Agrawal shares view on telcos

Sunny Agrawal, DVP and Head of Fundamental Desk at SBI Securities, believes investors are reasonably positioned to generate steady returns in calendar year 2026, supported by stable benchmark gains and selective stock picking.

Benchmark indices could deliver returns of around 12–13 per cent, while investors who pick outperforming mid- and small-cap stocks may see overall portfolio returns of 15–16 per cent in 2026, the market expert told Business Today on Thursday.

Sharing his outlook on the telecom sector, Agrawal said, "We continue to remain constructive on telecom as a sector."

He noted that the existing players are well placed to deliver healthy earnings growth, aided by a potential rise in average revenue per user (ARPU).

"So, I believe the kind of penetration which we have seen in the telecom sector and the post-consolidation, now I think the existing players are well-placed to deliver healthy earnings, backed by a likely increase in ARPU," he said.

Agrawal also pointed out that India remains one of the lowest ARPU and lowest cost markets globally. "So, I think annualised 5 to 6 per cent increase in ARPU is not a big deal," he said, adding that this could be driven by both direct tariff actions and indirect measures such as discontinuation of base plans and migration of users to higher-value prepaid or postpaid packages.

On company-specific prospects, Agrawal said, "So, as of now, Bharti Airtel and Bharti Hexacom Ltd, which operates in Rajasthan and the North East, are well positioned to deliver a decent earnings growth trajectory."

Commenting on Indus Towers Ltd, he said, "Indus Towers is one of the key beneficiaries in case Vodafone Idea Ltd gets a significant AGR relief. So, Indus Tower is an indirect beneficiary of that."