Vi falters while Airtel, Jio see AGR growth in Q1
What's the story
Telecom giants Bharti Airtel and Reliance Jio have reported a sequential rise of 2.6-2.7% in their adjusted gross revenues (AGR) for the June quarter. The data, analyzed by ICICI Securities, shows that Vodafone Idea's AGR remained flat during this period. The top three players' AGR (including national long distance, part of core mobile revenues) grew 16.6% YoY and 1.4% sequentially to ₹71,600 crore in Q1 FY26.
Revenue breakdown
Airtel captures 39.7% market share, Jio leads with 42.7%
Bharti Airtel's AGR increased 2.6% sequentially and 20.8% YoY to ₹28,400 crore, capturing a market share of 39.7%. Meanwhile, Reliance Jio captured an even larger chunk of the pie with an AGR of ₹30,600 crore—up by 2.7% sequentially and 16.6% on-year in Q1 FY26. Vodafone Idea's AGR share remained unchanged at 13.4%, but its adjusted revenues grew by a modest 1% sequentially and 4.6% annually to ₹9,600 crore during this period.
Revenue significance
Telcos focus on premiumizing subscriber base
AGR is a crucial metric for telecom operators as it helps the government calculate license fees and spectrum usage charges. The figure usually includes only core revenue from telecom services. Analysts have noted that telcos are now focusing on "premiumizing" their current subscriber base by discontinuing entry-level plans. This strategy has led to record churn levels among subscribers switching between different operators.
Subscriber shifts
Record-high mobile number portability requests
The churn has been reflected in the record-high Mobile Number Portability (MNP) requests. These requests surged to a record 15 million in July, up from 14 million in the previous month. "Users continue to shift between operators post tariff hikes," Jeffries said in a report. The brokerage also noted that churn levels have remained high since July 2024, after headline tariff hikes were implemented.
Revenue growth
Telecom operators expected to nudge customers toward premium plans
Market trackers expect telecom operators to continue nudging customers toward premium plans and monetizing the increasing data consumption by Indian users. This is likely to keep churn levels high. To boost average revenue per user (ARPU), telecom companies are expected to rely on a mix of headline tariff hikes, upgrades to premium plans, and data monetization.