Indian telecom stocks could be poised for further gains as tariff hikes, rising data consumption and opportunities in digital infrastructure strengthen the sector’s growth outlook, according to Ambit Capital. In a recent research report, the brokerage reiterated its positive stance on the sector, forecasting a 15% mobile tariff hike in December 2026, followed by 12% increases every two years over the next decade.
Ambit Capital named Bharti Airtel its top sector pick and maintained BUY ratings on Bharti Airtel, Indus Towers, Vodafone Idea and Bharti Hexacom. The brokerage believes improving pricing discipline, operating leverage and diversification into data centres could support earnings growth, although execution risks and potential regulatory changes remain important monitorables.
"Our positive view of the sector rests on our expectation of pricing discipline after Jio’s listing and the government’s desire for a three-private-player industry structure. Bharti Airtel is our top sector pick," said the brokerage.
Bharti Airtel: BUY | | Target price: ₹2,732 | Upside: 44%
Bharti Hexacom: BUY | Target price: ₹2,130 | Upside: 31%