Delay in price hike, weak Q2 results may play spoilsport for Bharti Airtel

There could be earnings cuts and lower target prices if the hikes don't materialise this year

The Bharti Airtel stock fell close to 5 per cent on Monday, on account of concerns that price hikes — the single-biggest trigger for the sector and telco — may not take effect in FY21. 

The Street expected price hikes after the Supreme Court’s verdict on the adjusted gross revenue or AGR case on September 1, and the same was to be initiated by Vodafone Idea (Vi).

However, following Vi’s announcement of its plan to raise Rs 25,000 crore, there were worries that a price hike might not happen immediately and be pushed to the last quarter of FY21. 

Besides,