Bharti Airtel Stock: Bharti Airtel’s decision to withdraw select prepaid plans could provide a boost to the telecom major’s Average Revenue Per User (ARPU), with brokerage estimates suggesting a potential monthly increase of Rs 4 to Rs 12.
Brokerages including Morgan Stanley, IIFL Capital, JM Financial and Citi have assessed the potential impact of Airtel’s recent prepaid plan rationalisation. While the move is not being viewed as an across-the-board tariff hike, analysts believe it could encourage subscribers to move towards higher-value plans and support Airtel’s premiumisation strategy.
The Rs 299 plan was among the popular offerings affected by the changes. With the plan withdrawn, subscribers looking for a similar option may now have to opt for the Rs 349 pack, translating into an effective price increase of around 16 per cent for those customers.
At the same time, Airtel has retained its entry-level Rs 199 and Rs 219 prepaid plans.
The changes have led brokerages to assess whether the reshuffled plan structure could accelerate Airtel’s efforts to improve monetisation without implementing a broad-based tariff hike.
Morgan Stanley: Rs 8-12 ARPU increase
Morgan Stanley estimates that the changes to the plans could lead to an increase of approximately Rs 8 to 12 in gross ARPU at the company level.
The brokerage’s estimate assumes that around 20-30 per cent of Airtel’s wireless subscribers were on plans below Rs 349 and that some of these customers could now upgrade to the Rs 349 offering.
Morgan Stanley said that the move represents a focused attempt by Airtel to improve monetisation while capitalising on customer preferences for higher-data plans.
“Airtel has taken the first step towards changing its tariff architecture, and it will be important to watch whether other telecom operators follow a similar approach,” the brokerage added.
Citi sees Rs 4 monthly ARPU benefit
Citi has estimated an ARPU benefit of around Rs 4 per month based on assumptions related to the subscriber mix on the Rs 299 plan.
According to Citi, the move is consistent with Airtel management’s strategy of driving ARPU growth through premiumisation.
The brokerage views the plan changes as a way to encourage customers to migrate towards higher-value offerings rather than as a formal, broad-based tariff increase.
JM Financial has estimated a potential ARPU increase of Rs 5-6, equivalent to around 2 per cent.
The brokerage assumes that around 10 per cent of Airtel’s subscribers could upgrade to plans costing approximately Rs 50 more.
JM Financial said the move is aimed at shifting subscribers towards higher-data and higher-ARPU plans rather than representing a broad tariff hike.
IIFL Capital has estimated an annualised ARPU uplift of around Rs 12. However, it expects the benefit during FY27 to be around Rs 4, as its estimates already factor in broader tariff hikes later in 2026.
The brokerage described the latest changes as an advancement of tariff hikes on select plans.
“We believe this is an advancement of the next round of tariff hikes (assumed in Dec’26) on select plans. For now, we are not assuming that this tariff tweak is over and above the Dec’26 expected tariff hike. The incremental benefit from the current move will thus be limited to four months of FY27, implying a potential FY27 ARPU uptick of Rs 4,” IIFL Capital told PTI.
Bharti Airtel Stock: What brokerages are saying
The brokerage estimates indicate that Airtel’s latest prepaid plan rationalisation could provide a modest but meaningful lift to ARPU, depending on how many subscribers shift to higher-priced plans.
Morgan Stanley has the highest estimated gross monthly benefit at Rs 8-12, while Citi sees a Rs 4 monthly benefit. JM Financial expects a Rs 5 and 6 increase, while IIFL Capital estimates an annualised uplift of Rs 12, with the FY27 benefit likely to be around Rs 4.
Titagarh was trading at Rs 1992, up Rs 49.10 or 2.53 per cent from the previous close of Rs 1,942.90. The stock has opened at Rs 1,935.15, touched a high of Rs 2,005.65 and a low of Rs 1,932 during the session, while the 52-week low stands at Rs 1,745.00. The upper circuit limit is Rs 2,191.20 and the lower circuit is Rs 2,191.20.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
