Telecom Operators Focus on Premiumising Subscriber Base Amid Elevated Churn

The top three telecom operators in India - Bharti Airtel, Reliance Jio, and Vodafone Idea - saw a significant increase in adjusted gross revenues (AGR) in the June quarter, according to an analysis of the telecom regulator's data. ICICI Securities reported that the AGR of the top three operators increased 16.6% on-year and 1.4% sequentially to '71,600 crore in Q1FY26. Analysts suggest that telcos are now focusing on premiumising their current subscriber base by discontinuing entry-level plans and increasing average revenue per user (ARPU).

Key Takeaways:

Bharti Airtel's AGR rose 2.6% sequentially and 20.8% on-year to '28,400 crore, cornering an AGR market share of 39.7% (a 48-basis-point sequential jump).
Reliance Jio cornered 42.8% of adjusted gross revenues in Q1FY26, with its AGR rising 2.7% sequentially and 16.6% on-year to '30,600 crore.
Vodafone Idea's AGR share remained flat at 13.4%, with its adjusted revenues rising 1% sequentially and 4.6% on-year to '9,600 crore.
Mobile Number Portability (MNP) requests rose to a record 15 million in July, from 14 million in the previous month.
Churn levels have remained elevated since July 2024, following the headline tariff hikes, with monthly MNP requests not falling below 12 million since then.
Telecom operators will look to increase ARPU by a combination of headline tariff hikes, upgrades to premium plans, and data monetisation, which remains underutilised in the past five years.

Statistics:

Hike in adjusted gross revenues (AGR) of the top three operators:

+ On-year: 16.6%

+ Sequentially: 1.4%

+ Total AGR: '71,600 crore in Q1FY26

Increase in Bharti Airtel's AGR:

+ Sequentially: 2.6%

+ On-year: 20.8%

+ AGR: '28,400 crore

Increase in Reliance Jio's AGR:

+ Sequentially: 2.7%

+ On-year: 16.6%

+ AGR: '30,600 crore

Sources:

ICICI Securities report, undated.
Jeffries report, dated Monday, [undated].
Kotak Institutional Securities report, undated.