We expect Q3 to be good for Indian telcos: BofA Securities report

Riding on the benefits of the recent tariff hikes, continuing subscriber additions and pick-up in 4G net additions, telecom companies are expected to post “good” third quarter results.

For the incumbents, resumption of services in Jammu & Kashmir (J&K) would be in their favour, while Internet shutdown in various parts of the country would have its impact.

“We expect 3Q to be a good quarter for Indian telcos, led by some benefit of tariff hike (for December), good subs momentum and qoq margin improvement. We also expect commentary on exit ARPU to be good, which would help overall momentum for telcos,” BofA Securities said in a report.