Key telecom stocks are in focus after Q1 results. Bharti Airtel posted a 35% profit jump in its Q1FY27. Vodafone Idea posted its first subscriber gain in eight years. Two very different wins, one key question – which telecom sector stock actually deserves your attention right now? 

Both companies saw improvement in key operating metrics, but the scale and scope of that improvement is very different.

Airtel continues to focus on higher average revenue per user (ARPU), premium customers and cash generation. Vodafone Idea, meanwhile, is trying to stabilise its business, improve subscriber trends and manage its heavy debt burden.

Let’s take a look at what the Q1 numbers, ARPU trends, and brokerage calls are really saying – 

Airtel Vs Vodafone Idea: Q1FY27 numbers

Bharti Airtel reported a 35.5% year-on-year (YoY) rise in net profit, excluding exceptional items, to Rs 8,057.2 crore in the June quarter. Consolidated revenue increased 18.4% YoY to Rs 58,539 crore.

Its India mobile business, which contributes around 73% of consolidated revenue, grew 9.2% YoY to Rs 29,928.9 crore.

The key metric, however, was ARPU. Airtel’s ARPU increased 2.72% sequentially to Rs 264. Growth was supported by postpaid additions and higher smartphone data usage.

Vodafone Idea also showed some improvement. Its loss narrowed sharply to Rs 3,754 crore from Rs 6,611 crore a year earlier. Revenue increased 6% YoY to Rs 11,689 crore.

More importantly, the company added subscribers for the first time since the 2018 merger of Vodafone India and Idea Cellular. Its subscriber base rose to 19.31 crore from 19.28 crore in the previous quarter.

ARPU also improved 10.2% YoY to Rs 195 from Rs 177.

Airtel Vs Vodafone Idea: ARPU, subscribers – Which stock has the edge?

Airtel is already operating with a higher ARPU of Rs 264. Vodafone Idea is at Rs 195. 

Furthermore, Airtel’s focus remains on premiumisation and increasing customer value, while Vodafone Idea is still working to reverse subscriber losses and strengthen its network.

Vodafone Idea’s first subscriber addition since the merger is an important operating milestone. But the company continues to face a much larger financial challenge.

Airtel Vs Vodafone Idea: Share performance

Airtel has declined around 5% over six months and gained nearly 3% over one year. So far in 2026, the stock is down around 10%.

Vodafone Idea, on the other hand, has gained around 14% in six months and surged 103% over one year. Its 2026 gain stands at around 13%.

Airtel Vs Vodafone Idea: What are brokerages saying 

Leading brokerage houses such as Motilal Oswal, Jefferies, Nomura, JM Financial have given their outlook on these telecom sector stocks 

Bharti Airtel: Analysts see earnings and tariff hikes as key drivers

Jefferies has retained its ‘Buy’ rating on Bharti Airtel with a target price of Rs 2,360, implying around 20% upside. According to the brokerage report, Airtel’s June-quarter revenue and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) were ahead of estimates. Higher-than-expected subscriber additions, improving ARPU, strong performance from Airtel Business and Africa, and healthy free cash flow were among the key positives.

Jefferies expects Airtel’s EBITDA and earnings per share (EPS) to grow at compound annual growth rates (CAGR) of 14% and 28%, respectively, between FY27 and FY29. The brokerage has also factored in a potential tariff hike, which could provide another boost to revenue and profitability.

The brokerage said, “Higher than expected mobile subscribers and ARPU, strong growth in Airtel business & Africa and healthy FCF generation were the key positive surprises in 1Q results.”

Motilal Oswal is also positive on Airtel, with a ‘Buy’ rating and a target price of Rs 2,335, indicating around 19% upside. The brokerage expects consolidated revenue and reported EBITDA to grow at around 14% CAGR between FY26 and FY29.

According to Motilal Oswal, the key growth drivers include the potential 15% tariff increase from the third quarter of FY27, expansion of the home broadband business, double-digit constant-currency growth in Africa and steady growth in business-to-business offerings.

The brokerage said, “Bharti is our preferred pick in the telecom space given its robust FCF generation, improving return ratios and outperformance (vs. peers) in driving organic ARPU growth through premiumization.”

It also expects Airtel to generate more than Rs 2.25 lakh crore in free cash flow between FY26 and FY29, potentially helping the company become net cash, excluding leases, by FY28.

Vodafone Idea: Recovery is visible, but funding remains the key question

The brokerage stance on Vodafone Idea is more cautious.

Nomura has a ‘Neutral’ rating with a target price of Rs 13.50, implying around 5% upside. The brokerage highlighted the company’s first subscriber addition since the Vodafone-Idea merger as a positive development. However, it continues to see funding and tariff hikes as important for the longer-term recovery.

Nomura said, “We prefer Bharti Airtel among our covered telecom stocks.”

The brokerage has identified three major potential catalysts for Vodafone Idea: a successful debt or capital raise, industry-wide tariff increases and sustained subscriber additions. It also values Vodafone Idea at a higher multiple than Airtel because of the company’s potentially higher earnings growth if the turnaround gains traction.

JM Financial is somewhat more constructive, with an ‘Add’ rating and a target price of Rs 14.70, implying around 14% upside. It noted that Vodafone Idea’s revenue was ahead of estimates, while subscriber additions and 4G/5G customer growth were encouraging.

However, JM Financial has cut its FY27-FY29 revenue, EBITDA and profit estimates by 1-4%, partly due to expectations of a delay in tariff hikes.

The brokerage is also watching the approval of Rs 25,000 crore of funding, future debt raising and Vodafone Idea’s ability to protect its subscriber market share.

Reliance Jio: Another telecom player to watch

There is also a third player waiting in the wings. 

Jio Platforms posted a 9.2% rise in profit after tax (PAT) to Rs 7,764 crore. Moreover, Reliance Jio has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 19, 2026.

The proposed issue comprises a fresh issue of up to 27 crore equity shares, with the shares proposed to be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). 

Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices, and recommendations expressed are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.