Telcos to report ARPU improvement in range of Rs 225-230 by next fiscal, growth to be driven by tariff hike, data consumption surge

The recent tariff hike by telecom operators in the range of 10-25 per cent and also growing data consumption will lift the average revenue per user per month (ARPU) of Indian telecom companies by approximately 25 per cent in fiscal 2026 as compared to fiscal 2024, said CRISIL Ratings. This, along with moderation in capital expenditure on account of lower network investments after completion of 5G rollouts and limited spectrum renewals, CRISIL added, will enhance return on capital employed (RoCE) and support deleveraging in the industry, thereby improving credit profiles.