Telecom earnings likely to stay subdued in Q4

Mumbai: Telecom operators are expected to report a largely muted March-quarter performance, with steady underlying growth offset by fewer operating days and rising cost pressures related to energy headwinds, according to brokerage analysts.

Near-term earnings are being weighed down by seasonality, cost pressures and lack of tariff hikes during the quarter. Analysts across brokerages said the fourth quarter of FY26 is likely to be “immaterial” in terms of headline growth, with investor focus shifting to upcoming tariff hikes and the next phase of capital expenditure. The bigger trigger will be management commentary on the next tariff hike, with expectations ranging from a 10-20% increase over the next 3-9 months.