Bharti Airtel shares rise 10%; data demand, tariff hikes help

Shares of Bharti Airtel Ltd surged 10 per cent to a record high on Tuesday, as customers upgraded their data and calling plans and the Indian telecom operator raised mobile tariffs, helping boost average revenue per user.

The company’s average revenue per user, a key metric for the telecom sector, rose 25 per cent to 154 rupees at its India mobile services business during the quarter ended March 31.

“Bharti Airtel’s strong data subscriber additions despite sharp tariff hikes reflects consumer acceptance of higher tariffs,” Jefferies said in a note. “Moreover, its ability to add data subscribers should also support market share gains.”