Telecom revenue to grow 12-14% in FY27: Report

A round of tariff hike in India’s telecom, alongside continued premiumisation, is expected to support 10% average revenue per user (Arpu) growth and 12-14% revenue growth in FY27 even as subscriber additions remain moderate, ratings agency CareEdge Ratings said in a recent report.

The agency said that India’s telecom market continues to exhibit one of the widest gaps between data consumption and monetisation. Despite having among the world’s highest mobile data usage levels, mobile Arpu remains at around Rs 200, highlighting significant headroom for further tariff rationalisation. With nearly two years having elapsed since the last industry-wide tariff hike, another calibrated increase appears likely in FY27.

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