Telecom Q2 Preview: Cos to shrug off seasonality factor on higher Arpu, subscriber growth

Traditionally, the September quarter is a seasonally weak one for the telecom industry. But, the last quarter of the current financial year has not conformed to the trend, proving to be favourable for most of the companies.

Higher number of days in the last quarter, lower spectrum usage charges, tariff hikes, and lower fuel costs are seen lifting sector majors Bharti Airtel and Reliance Jio Infocomm’s earnings in Q2, according to analysts.

“We believe Airtel is well-positioned to report strong revenue growth and improvement in profitability, led by higher tariffs and market share gains,” said BNP Paribas in its report.