Summary:
Ambit Securities has raised profits estimates and revised fee goals for foremost Indian telecom and associated shares Reliance Industries Ltd (RIL), Bharti Airtel, Vodafone Idea and Indus Towers reflecting progressed region basics, persisted government support (specially for Vodafone Idea), and stronger revenue boom potentialities driven via tariff hikes and 5G/FTTH monetization. Ambit reaffirmed purchase rankings on Airtel, Vodafone Idea and Indus Towers whilst assigning a sell rating on RIL due to constrained upside.
Ambit Securities has up to date its outlook for India’s telecom region, elevating profits in step with proportion (EPS) forecasts and revising fee goals on key stocks as robust demand, regulatory support and strategic shifts reshape the industry’s growth trajectory. The brokerage increased its FY2025-42 revenue CAGR estimate by 1%, underpinned with the aid of projected tariff hikes, monetization of 5G and fiber get admission to networks, and sustained client call for fact’s offerings.
The endured authorities backing for Vodafone Idea (VI) consisting of a partial adjusted gross revenue (AGR) waiver and halting further equity conversion has strengthened self-belief within the quarter’s three-player structure, making VI’s operations extra sustainable at the same time as benefiting related infrastructure players.
Price Target Revisions and Ratings
Ambit’s trendy research caused fantastic changes in goal costs and ratings for the subsequent stocks:
• Bharti Airtel Ltd: Buy rating maintained with a 13% boom in charge goal to ₹2,528, supported by means of advanced free coins, glide conversion and strong monetization prospects throughout cell, fiber and company offerings.
• Vodafone Idea Ltd: Buy score reaffirmed with a goal fee of ₹15.1, reflecting progressed viability thanks to regulatory remedy and potential future tariff increases.
• Indus Towers Ltd: Buy rating with a target fee of ₹559 — recognized because the pinnacle picks due to its “Utility + Growth” profile, cut prices to global peers and advantages from ongoing community growth across operators.
• Reliance Industries Ltd (RIL): Sell score with a target charge of ₹1,510, implying a moderate disadvantage; Ambit believes RIL’s telecom valuation is much less compelling as compared to pure-play telcos.
Sector Growth Drivers
Ambit expects a 15% tariff hike in Q4 FY26 to be a key earnings catalyst, as pricing electricity improves enterprise profitability. With height capex for 5G and FTTH rollouts at the back of them, operators are expected to shift consciousness to monetization and coins waft generation. Airtel and Reliance Jio are forecasted to attain 15% and 17% sales CAGR, respectively, through FY2042, supported by way of sturdy working leverage. Indus Towers is buying and selling at a large cut price relative to international infrastructure friends on a cash EBITDA foundation, providing ability fee for lengthy-time period investors.
Strategic Implications for Investors
Ambit’s updated outlook highlights accelerated proportion sale pastime through strategic buyers in Jio, Airtel, and Hexagon among 2026 and 2028, with VI divestment simplest probably after 2028. This dynamic ought to gift institutional investment opportunities as telecom shares benefit greater representation in indices.
Overall, Ambit’s revisions mirror a more positive earnings outlook throughout India’s telecom panorama, driven by means of regulatory clarity, pricing strength, and extended monetization of next-generation networks.
