Centrum Broking has released its Q4FY26 analysis for India's telecom and internet sectors, highlighting a stable performance driven by premiumisation, increased data usage, and ongoing network investments. The brokerage firm maintains a positive sector outlook, anticipating continued growth from 5G subscriber expansion, fixed wireless access (FWA) broadband, and users upgrading to higher-paying plans.
Telecom Sector Performance and Outlook
Bharti Airtel and Reliance Jio are positioned to drive monetisation through converged offerings and higher data usage, according to Centrum. Bharti Airtel added 4.7 million wireless subscribers in the quarter, reaching a base of 373 million, supported by premiumisation, customer upgrades, and strong traction in home broadband, enterprise, and African operations. Reliance Jio saw approximately 9 million new customers, reaching 524 million, primarily due to 5G adoption and robust home broadband additions via JioAirFiber. Both operators saw subscriber market share gains, though Airtel's ARPU saw a marginal sequential dip due to fewer days in the quarter, while Jio's ARPU slightly increased.
Vodafone Idea expanded its 5G footprint, increased broadband sites, and improved 4G coverage. Its customer base remained largely stable at 192.8 million, with ARPU rising 1.2 percent quarter-on-quarter to Rs 174 per month. The company also saw its Adjusted Gross Revenue (AGR) dues decline by Rs 55,600 crore from the previous quarter.
Indus Towers posted a steady Q4FY26, adding 4,890 towers and maintaining a stable tenancy of 1.62 times, indicating healthy demand from telecom operators. Centrum believes Indus Towers will benefit from ongoing 5G rollouts, network densification, improving customer health, and its expansion in Africa. Tata Communications reported 9.4 percent year-on-year revenue growth, driven by its digital portfolio and enterprise connectivity business, with profitability supported by an improving digital mix and operational efficiencies.
Internet and Platform Companies Review
Growth across internet platforms was selective in Q4FY26. Info Edge reported 5.3 percent quarter-on-quarter revenue growth, buoyed by its recruitment and real estate segments, achieving margin expansion despite subdued hiring demand in IT and BPM. IndiaMART saw 0.7 percent growth, attributed to improving enquiry quality and stable monetisation in its Gold and Platinum segments.
Nazara Technologies experienced a 2 percent revenue decline due to seasonal weakness. CE Info Systems recorded 1 percent year-on-year growth, while eMudhra's revenue rose 2.9 percent sequentially, driven by strong trust services. Centrum noted that premiumisation, AI-led product innovations, IoT scaling, and global expansion continue to underpin the medium-term outlook for these companies.
Centrum Broking's Stock Recommendations
Centrum Broking has issued 'buy' ratings for several key players in the telecom and internet sectors:
- Bharti Airtel: Target Price Rs 2,431 (Buy)
- Indus Towers: Target Price Rs 523 (Buy)
- Info Edge: Target Price Rs 1,521 (Buy)
- eMudhra: Target Price Rs 700 (Buy)
- IndiaMart InterMesh: Target Price Rs 2,570 (Buy)
The brokerage has assigned a 'neutral' rating to the following stocks:
- Vodafone Idea: Target Price Rs 13 (Neutral)
- Tata Communications: Target Price Rs 1,668 (Neutral)
- Nazara Technologies: Target Price Rs 284 (Neutral)
- CE Info Systems: Target Price Rs 965 (Neutral)
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. Consult a qualified financial advisor before making investment decisions.