Market activity in the telecom sector is expected to pick up as Reliance Jio prepares for its much awaited stock market debut.
Reliance Jio, the country’s largest telecom operator, is expected to launch its initial public offer in the first half of 2026. With the public listing in sight, the company is likely to continue adding users and may also participate actively in upcoming tariff hikes. This move is expected to benefit not just Jio but also rival operators and the overall telecom sector.
A brokerage firm said both Jio and Bharti Airtel are well positioned to generate strong free cash flow. The Jio public offer is also expected to act as a trigger for better cash generation across the sector. The firm has reaffirmed its BUY rating on Bharti Airtel and Bharti Hexacom.
While a fixed timeline for the offering has not been announced, the brokerage believes the listing will take place in the first half of 2026. It also expects Jio to become one of the most valuable listed companies in the country after the listing, with a market value likely to surpass that of Airtel.
In its note, the brokerage said, “We believe Jio’s IPO is planned for 1HCY26 subject to necessary approvals, we believe, increases the visibility of a ~15% tariff hike in the next few months.”
Tariff hikes are expected to play a key role in improving profit margins and business returns for telecom operators. Higher prices are also necessary for companies to achieve their long term average revenue per user goals.
Bharti Airtel has set a near term target of ₹300 in ARPU and has also shown interest in making changes to the current tariff structure in India. The brokerage expects a 15 percent tariff increase to help Airtel reach this goal.
At the end of the second quarter of FY26, Airtel’s ARPU stood at ₹256.
With the expected public listing of Jio and a possible tariff revision ahead, analysts believe the sector could enter a stronger phase of profitability and balanced growth over the next year.
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