The company has withdrawn the ₹299, ₹579, ₹619 and ₹649 prepaid packs nationwide. Following the rationalisation, the cheapest 28-day plan offering daily data is now priced at ₹349, implying a ₹50, or 16.7%, increase from the earlier entry-level plan.
The ₹299 prepaid smartphone plan offered 1.5 GB of daily data with a 28-day validity. Subscribers on the discontinued plan will now have to move to the next available ₹349 plan, which offers 2 GB of data per day.
Brokerages see the move as positive for Airtel’s average revenue per user (ARPU), although it does not amount to a formal tariff hike.
Citi maintained its ‘Buy’ rating on Bharti Airtel with a price target of ₹2,230. The brokerage said tariff and plan rationalisation by telecom operators occurs periodically, but the latest move is directionally positive for ARPUs.
Citi said the move is also in line with management’s strategy of driving ARPU growth through premiumisation, a trend that has been visible in recent quarters.
Based on assumptions around the subscriber mix on the ₹299 plan, Citi estimates the change could potentially increase ARPU by around ₹4 per month, translating into an estimated 2% earnings-per-share benefit.
JM Financial also retained its ‘Buy’ rating with a price target of ₹2,400, implying around 25% upside from current levels. The brokerage expects the move to result in a 2% increase in wireless ARPU and a 1% rise in India EBITDA.
CLSA estimates the plan rationalisation could boost Bharti Airtel’s India mobile revenue by 2-3%.
IIFL expects Bharti Airtel’s FY27 consolidated EBITDA estimates to see a 1% upgrade following the move.
Bharti Airtel shares ended 0.12% higher at ₹1,917.50 on Wednesday. The stock has declined around 9% so far this year.
