Airtel subscriber growth stalls as Jio gains ground
Bharti Airtel’s Indian mobile services unit posted a 4 % sequential rise in EBITDA to ₹18,874 crore for the September quarter, with mobile ARPU climbing 2.7 % QoQ to ₹271. The improvement came despite a sharp slowdown in net mobile subscriber additions, which dropped from 3.3 million in Q1 FY27 to 0.7 million in Q2 FY27 after the company reinstated its ₹299 prepaid data plan offering 1 GB per day for 28 days.
Reliance Jio, by contrast, kept its entry-level prepaid price at ₹299 and introduced a Jio Prime scheme costing ₹300 for a twelve-month term, effectively ₹25 per month, to shield users from future tariff hikes. Jio’s net mobile subscriber additions rose from 7.3 million to 7.7 million in the same period, a figure that includes machine-to-machine and IoT SIMs but excludes home broadband users.
Airtel’s ARPU growth in Q2 was driven more by an extra day in the quarter and a higher share of postpaid customers, who made up 8.3 % of the subscriber base at the end of September. The company also raised all postpaid tariffs by ₹50 per month from 8 October, moving the lowest plan from ₹449 to ₹499, a move expected to support ARPU even if postpaid share remains modest.
The home broadband segment added 4.7 % QoQ, reaching 15.36 million homes, though management signaled a scaling back of fixed wireless access expansion and warned that fibre-to-the-home roll-out could delay near-term growth. Airtel’s market-cap-to-EBIT multiple sits around 24×, roughly a 10 % discount to Jio on the same metric, and the stock has been flat throughout 2026.
Analysts note that Jio’s upcoming listing offers a “clean play on Indian telecom services,” whereas Airtel’s broader portfolio—including its stake in Indus Towers, lending operations, and African businesses—makes a near-term re-rating more challenging.
Why it matters
The diverging subscriber trends and pricing strategies could reshape market share and valuation dynamics for India’s two largest telecom operators.
FAQ
What was Airtel’s mobile ARPU in Q2 FY27?
Mobile ARPU increased 2.7 % QoQ to ₹271.
How did subscriber additions compare between Airtel and Jio in Q2 FY27?
Airtel added 0.7 million mobile subscribers, while Jio added 7.7 million.
What tariff change did Airtel implement for postpaid plans in October?
Airtel raised all postpaid tariffs by ₹50 per month, moving the minimum plan from ₹449 to ₹499.
What is the market-cap-to-EBIT multiple comparison between Airtel and Jio?
Airtel’s multiple is around 24×, about a 10 % discount to Jio on the same basis.
Source: Mint Markets. See the original source for full details.
Scan with your phone
Scan with your phone