Airtel's earnings likely to increase 12% after tariff hike

Vi is expected to raise prices, but Jio's reaction to the hike will be critical: Experts

The stock of India’s second largest telecom service provider was up 3.9 per cent and hit an all-time high after the company announced tariff hikes of 20-25 per cent in the prepaid segment.

The across-the-board increase comes after a gap of nearly two years and is expected to boost Airtel’s average revenue per user (ARPU) and margins. The prepaid segment accounts for 95 per cent of the firm’s subscriber base.

Naval Seth and Sonali Shah of Emkay Research point out that tariffs in the entry level segment after the latest increase have risen by 2x since July 2021. They have raised their