Telecom operators expected to see stable Q2, say analysts

Indian telecom operators are expected to show sequential growth in the second quarter of financial year 2020-2021 on the back of higher gross additions and data subscriber additions. Though a seasonally weak quarter followed by the monsoon, Q2FY21 is expected to be an aberration, due to substantial low base witnessed in Covid-hit first quarter of FY21.

The average revenue per user (Arpu) is expected to see moderate rise for all operators on a sequential basis. While Bharti Airtel is expected to report Arpu in the range of Rs 157-Rs 159 seeing a flat to 1.2% increase, Vi (erstwhile Vodafone Idea) is expected to report a slightly higher 4-5% increase in Arpu from Rs 114 in Q1FY21 to Rs 119-Rs 120 in Q2FY21. Reliance Jio, according to analysts, will see a 2% quarter-on-quarter increase in Arpu to Rs 143 compared to Rs 140 in the preceding quarter.