UBS flags risk to Indian telcos' rate hikes; downgrades Airtel, Vi

Vodafone Idea

11/07/2025 07:22

** UBS downgrades telcos Bharti Airtel BRTI.NS to "sell" from "neutral" and Vodafone Idea VODA.NS to "neutral" from "buy"

** It expects 10-12% mobile tariff hikes in late FY26, but possible that it'd be delayed given current tariffs are in line with global emerging markets, which in turn can limit price-hike led revenue

** Flags BRTI's expensive valuations, slowing subscriptions, while Reliance's RELI.NS Jio appears to be gaining market share

** BRTI down 1.2% to 1,941 rupees, VODA down 2.5% to 7.2 rupees

** Avg rating of 20 analysts on BRTI is "buy", of 19 analysts on VODA is "hold" - data compiled by LSEG

** YTD, BRTI up 21.4%, VODA down 10%

 (Reporting by Aleef Jahan in Bengaluru)

 ((aleefjahan.cs@thomsonreuters.com))