- Jefferies expects 2026 to be a growth and re-rating year for telecom stocks
- Target prices raised to Rs 2,760 for Bharti Airtel and Rs 510 for Indus Towers
- Jio IPO anticipated to boost sector valuations and tariff outlook in 2026
Shares of Bharti Airtel and Indus Towers will be in focus heading into trade on Thursday, in the wake of a recent report from Jefferies, which has pegged 2026 as the year of growth and re-rating in the telecom space.
In its latest note, Jefferies has also hiked target price on both Bharti Airtel and Indus Towers while putting emphasis on Jio's IPO, which could potentially drive up sector valuations.
The brokerage firm has retained buy calls on both Bharti Airtel and Vodafone Idea. The price target for Airtel has been raised from Rs 2,635 to Rs 2,760, while the Indus Towers target has been increased from Rs 425 to Rs 510.
Bharti Airtel remains the top pick in the sector for Jefferies, which believes that in June 2026 to drive up sectoral revenue.
Along with steady capex, the potential tariff hike should also boost free cash flow generation and return on capital employed for telecom companies.
Jefferies noted that Bharti Airtel, for its part, has multiple growth levers and strong free cash flow generation.
As for Indus Towers, the firm pointed out that potential AGR relief from the government could serve as a major boost for the company, improving growth outlook while supporting its re-rating.
It must be noted that Vodafone Idea has been in the news lately on account on potential tariff relief from the government, with media reports widely claiming a five-year interest-free moratorium.
Meanwhile, Jefferies believes another pivotal development for the telecom space in 2026 could be Jio's IPO.
As one of the most significant players in the Indian telecom space, the firm expects the Jio IPO to not only boost tariff outlook but also drive up sector valuations.
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