India's Telecom Sector Steadies with Steady Subscriber Growth, 5G Milestones Achieved

India's telecom sector maintained a steady performance in Q1 FY26, focusing on 5G expansion and subscriber retention. Reliance Jio led growth, adding 9.9 million users. Bharti Airtel excelled in ARPU at Rs. 250 and 5G user growth. Vodafone Idea showed mixed results with a 0.5 million subscriber drop.

India's telecom sector demonstrated solid performance in the first quarter of FY26, focusing on subscriber retention and 5G rollouts, according to a report by Centrum. Key players like Reliance Jio, Bharti Airtel, and Vodafone Idea prioritized network expansion. Meanwhile, digital service and tower providers reported stable growth.

Reliance Jio led subscriber additions, attracting 9.9 million new users, increasing its base to 498.1 million. Bharti Airtel's India wireless business saw 1.2 million new subscribers and a rise in its 5G user base to 152 million. Vodafone Idea faced a net loss of 0.5 million subscribers, though it gained 1 million 4G subscribers, raising its 4G/5G base to 127.4 million.

ARPU showcased steady improvement. Airtel maintained Rs. 250 per month, supported by smartphone adoption and postpaid upgrades. Jio's ARPU climbed to Rs. 209 with a richer customer mix, while Vodafone Idea's increased slightly to Rs. 165, indicating gradual customer quality improvement.

5G adoption surged. Jio reached 213 million 5G users, while Airtel ended the quarter with 152 million. Airtel added a record 0.94 million broadband customers, including 0.54 million through FWA. Jio topped 20 million home connections, with significant contributions from JioAirFiber. Vodafone Idea expanded 5G to key cities and aims for full spectrum coverage by August 2025.

In the tower segment, Indus Towers reported robust growth with over 2,468 new macro towers. Tata Communications saw a slight sequential revenue dip but overall year-on-year growth, driven by cloud, security, and connectivity services. The sector's digital service players showed varied performances, with digital adoption being a key growth driver.

(With inputs from agencies.)