Jefferies picked Bharti Airtel as its top pick for the telecom sector, as it led the active subscribers base, gaining a market share of 30 basis points to 36.3%, which was better than its peers, Vodafone Idea and Reliance Jio.
Jefferies on Bharti Airtel: Gain in active subscribers key positive
In January 2025, the overall industry’s active subscriber base jumped by 5 million month-on-month to 1,065 million. Out of this, Bharti Airtel gained 4.7 million active subscribers, which Jefferies believes to be a key positive. Meanwhile, Vodafone Idea’s active subscribers dropped by 0.7 million, and Jio’s share remained flat.
Jefferies on Bharti Airtel: Reported subscribers increased
The January 2025, Bharti Airtel’s reported subscriber base rose by 1.7 million, and Jio added 0.7 million subscribers. Meanwhile, Vodafone Idea lost 1.3 million subscribers. The sector’s reported subscriber base increased by 0.6 million in January 2025, post the 2 million jump in December 2024. The industry’s reported subscriber base increased for 2 straight months after 5 months of decline post the tariff hikes in July 2024.
The sector’s MNP (Mobile Number Portability) requests remained elevated at 14 million in January 2025, which inched up sequentially, possibly as users continue to shift between operators post-tariff hike, said Jefferies. “We note that MNP requests have remained elevated, and higher churn usually drives up dealer commissions/SG&A expenses for telcos,” added Jefferies.
An MNP (Mobile Number Portability) is a request by a subscriber to change their mobile service provider while keeping their existing phone number. This allows users to switch operators without the hassle of changing their number.
Bharti Airtel stock performance
The share price of Bharti Airtel has risen 2.75% in the last five trading days. The stock has given a return of more than 7% in the last one month and 9.5% in the past six months. Bharti Airtel’s share price has increased by almost 38% over the previous one year. Financial Express