The telecom sector recorded Q1FY25 adjusted gross revenue (AGR) growth of 0.9 per cent sequentially and 7.5 per cent YoY to Rs 636 billion (per TRAI data) even with absence of any major tariff hikes. This, per a report by JM Financial, was driven primarily on account of telcos’ continued premiumisation efforts, like MBB (mobile broad-band) upgrades, prepaid-to-postpaid upgrades, data monetisation and international roaming. The growth was also aided by decent wireless subscriber (subs) growth (of 5 million) in Q1FY25.
Performance by major telcos
Jio’s Q1 AGR rose by 2.3 per cent on-quarter to Rs 265 billion on continued robust subs gains in both wireless and FTTH segments and hence, its AGR (incl. NLD/ILD) market share further strengthened to 41.7 per cent in Q1FY25 (up 57 bps QoQ and up 113 bps YoY). Per the analysis report by JM Financial, the telecom company’s AGR grew steadily QoQ in category A circles (+2.7 per cent), category B circles (+2.0 per cent) and category C circles (+2.2 per cent) while it grew at slightly lower pace in Metros (+1.3 per cent). Even so, Jio, it added, still lost AGR market share QoQ in 14 out of 22 circles, primarily to Bharti Airtel as Jio’s AGR was up by 2.2 per cent QoQ while Bharti Airtel posted 5.8 per cent QoQ growth, during the quarter probably due to muted APRU growth. Jio did lose its leadership position to Bharti Airtel in the key circle of Delhi, though it took over the leadership spot in J&K circle.
Now, Bharti Airtel’s AGR (incl. NLD/ILD) increased only by 0.8 per cent QoQ to Rs 247 billion as 5.8 per cent QoQ rise in AGR (excl. NLD/ILD) to Rs 229 billion was largely offset by 36 per cent QoQ decline in ILD/NLD revenue to Rs 19 billion. This, JM Financial said, was probably on account of continued slowdown in global B2B business due to decline in demand for bandwidth, CPaas and other related services especially from global OTT players. Hence, its AGR (incl. NLD/ILD) market share remained strong at 38.9 per cent in Q1FY25 (down 6 bps QoQ but up 59 bps YoY). Bharti Airtel witnessed robust AGR growth QoQ across all category circles – Metros (+6.2 per cent), category A circles (+4.1 per cent), category B circles (+6.2 per cent) and category C circles (+8.5per cent). Further, it gained AGR market share in 18 out of 22 circles.
Vodafone Idea Limited’s AGR, meanwhile, rose 1.3 per cent QoQ to Rs 98 billion in Q1FY25 aided by 9.7 per cent QoQ rise in ILD/NLD revenue to Rs 25 billion. However, its AGR (excl. NLD/ILD) declined 1.4 per cent QoQ to Rs 72.7 billion in Q1FY25 on account of continued decline in its overall subs base. Hence, its Q1 AGR (incl. NLD/ILD) market share was largely unchanged QoQ at 15.3 per cent (up 5 bps QoQ but down 85 bps YoY). Its AGR declined in Metros (-10.7 per cent) and category A circles (-2.8 per cent) while it recovered in category B circles (+3.1 per cent) and category C circles (+8.1 per cent). Further, it lost AGR market share in 17 circles.
And, BSNL’s AGR (incl. NLD/ILD) declined by 11.5 per cent QoQ to Rs 25.5 billion in Q1FY25, resulting in its AGR (incl. NLD/ILD) market share declining to 4 per cent in Q1.