New Delhi: The Indian telecom industry is poised to see a strong 10-12 per cent growth in operating income in FY26, ICRA said on Friday.
Industry revenues are expected to be Rs 3.5-3.7 lakh crore with an OPBIDTA (Operating Profit Before Interest, Depreciation, Taxes and Amortisation) of Rs 1.7-1.9 lakh crore for FY2026, driven by recent and upcoming tariff hikes, ICRA said.
The previous tariff hikes have already pushed Average Revenue Per User (ARPU) beyond Rs 200 in FY2025, and further growth is expected to lift it to Rs 220 in FY2026.
According to ICRA, another round of tariff increases later this fiscal will provide additional momentum.
The sector has frontloaded its 5G investments in FY2024 and FY2025, and capex intensity is now likely to decline, it noted.
The industry debt, however, is estimated to peak at Rs 6.6 lakh crore by March 2025 before gradually easing.