Jefferies has identified Bharti Airtel as the standout player in the telecom sector, celebrating its impressive subscriber growth and market share increase. With a 36.3% market share after a gain of 30 basis points, Bharti Airtel outshines competitors like Vodafone Idea and Reliance Jio. This favorable trend underscores the company’s robust positioning in a dynamic industry landscape.

Subscriber Growth Highlights

In January 2025, the telecommunications industry experienced a notable surge in its active subscriber base, which climbed by 5 million to reach 1,065 million. Among this growth, Bharti Airtel excelled by adding 4.7 million active subscribers, a development that Jefferies has termed a significant positive indicator for the company. In contrast, Vodafone Idea reported a decline of 0.7 million subscribers, while Jio’s numbers remained stagnant.

• Key Subscriber Changes in January 2025:
  • Bharti Airtel: +1.7 million reported subscribers
  • Jio: +0.7 million reported subscribers
  • Vodafone Idea: -1.3 million reported subscribers

This subscriber growth marks a positive turnaround for the sector, which experienced a 0.6 million increase in reported subscribers in January. This uptick follows a two-month recovery period after a five-month decline attributable to tariff hikes implemented in July 2024.

Mobile Number Portability Trends

Mobile Number Portability (MNP) requests remain robust, totaling 14 million in January 2025. This steady flow of MNP requests indicates that users are actively switching between service providers, likely a reaction to recent tariff changes. Jefferies noted that elevated churn rates often lead to increased dealer commissions and higher selling, general, and administrative (SG&A) costs for telecom companies.

• MNP Overview:
  • Recent MNP requests: 14 million in January 2025
  • Possible factors: Subscriber shifts due to tariff hikes

Bharti Airtel’s Stock Performance

The stock performance of Bharti Airtel has been on an upswing, reflecting investor confidence. In the past five trading days, the stock price rose by 2.75%. Over the last month, it has generated a return of over 7%, with an impressive 9.5% increase in the past six months. Notably, the stock has soared nearly 38% in value over the last year, showcasing its strong market presence.

In summary, Bharti Airtel’s strategic advantages and subscriber growth put it in a strong position within the competitive telecom sector, making it a compelling choice for investors looking to capitalize on the industry’s evolving landscape.