Brokerage Ambit Capital Issues Buy Ratings on Top Telecom Stocks, Names Bharti Airtel as Top Pick

Stock Targets

Ambit Capital has issued BUY ratings for several major Indian telecom shares, naming Bharti Airtel as its top sector pick. The brokerage set a target price of ₹2,732 for Bharti Airtel, offering a 44% upside, and ₹532 for Indus Towers with a 39% upside. Vodafone Idea received a target price of ₹18.7 with a 62% upside, while Bharti Hexacom was given a ₹2,130 target price with a 31% upside.

Growth Outlook

The positive market outlook rests on expected mobile tariff hikes, rising data consumption, and digital infrastructure expansion. Ambit Capital forecasts a 15% mobile tariff hike in December 2026, followed by 12% increases every two years over the next decade. The brokerage expects Bharti Airtel and Reliance Jio to deliver revenue compound annual growth rates of 16% and 15% respectively between FY26 and FY29.

Risks And Challenges

Despite the positive outlook, the report flags several important execution and regulatory risks for the sector. Satellite communications could challenge telecom monetisation, and potential government preference for a new telecom operator remains a risk. Data centres face longer payback periods stretching up to 11 years, with power and water availability emerging as key choke points.

Context

Brokerage firms regularly publish research reports analysing sector-wide trends to guide investors on stock performance and target prices. These evaluations typically combine financial projections, industry regulations, and macro economic factors like consumer spending patterns. However, such stock recommendations are advisory and individual investors are generally encouraged to consult certified financial experts before making market trades.