Telecom Q3 results preview – Steady growth expected

We expect revenue and Ebitda of telecom companies in our coverage universe (Reliance Jio, Bharti Airtel Ltd.) to increase by up 4.3% QoQ and up 2.1% QoQ at Rs 234.8 billion and Rs 193.6 billion respectively, given subscriber addition of 6.5 million besides building a gradual increase in average revenue per user growth (2.7-3.5%QoQ).

Led by frequent tariff hikes and further increase in share of two dominant players with (Q2 ~78% revenue share given weak financials of competitors), we maintain our positive stance on the sector. Bloomberg