India's telecom sector demonstrated strong growth in the April-June 2026 quarter, with adjusted gross revenue (AGR) reaching ₹88,796 crore, representing a 9.19% year-on-year increase and 2.40% quarter-on-quarter growth, according to the Telecom Regulatory Authority of India's latest performance report. The sector's gross revenue showed even stronger performance, rising 10.50% year-on-year to ₹1,06,797 crore, with a 1.60% increase compared to the previous quarter. Access services, including mobile and fixed-line connectivity, accounted for 83.85% of the sector's total AGR.
Reliance Jio dominated the market with AGR of ₹33,226 crore in the June 2026 quarter, accounting for 44.62% of the segment's revenue share, as reported by The Economic Times. Bharti Group followed with ₹29,803 crore and a 40.03% share, while Vodafone Idea recorded ₹8,448 crore, representing 11.35%. State-run operator Bharat Sanchar Nigam Limited reported ₹2,117 crore, up 2.80%, giving it a 2.84% share. Jio's AGR grew 9.69% year-on-year, compared with 10.19% for Bharti and 8.27% for Vodafone Idea.
The sector witnessed significant growth in data consumption and subscriptions during the quarter. India's internet subscriptions reached 1.11 billion at the end of June, while broadband subscriptions increased 2.03% from March to 1.09 billion in June, according to The Economic Times. Average monthly mobile data usage rose 6.32% to 28.39 GB per data subscriber, with total mobile data traffic increasing 8.30%. However, operators' average revenue earned per GB fell 5.07% to ₹7.13.
Monthly average revenue per wireless user reached ₹187.12, showing a 1.19% increase from the previous quarter and 3.11% year-on-year growth, as reported by The Economic Times. However, average monthly voice usage declined 2.65% to 933 minutes per subscriber. License fees increased 9.18% year-on-year to ₹17,103 crore, reflecting the sector's overall revenue growth and the AGR calculation methodology used for operator licensing and spectrum charges.
Motilal Oswal Wealth Management Research Desk expects India's telecom sector to see a valuation re-rating ahead of Jio Platforms' proposed IPO, with the reported ₹11 trillion valuation broadly in line with its estimated fair value and implying around 12x FY28E EV/EBITDA. A potential 15% smartphone tariff hike in December 2026 could strengthen earnings visibility across the sector. For Reliance Industries, the IPO could unlock value by providing a clearer market valuation for its 66.4% stake in JPL, while Bharti Airtel remains well positioned to benefit from tariff hikes and premiumisation trends. The proposed JPL IPO at a reported valuation of ₹11 trillion could establish a clearer valuation benchmark for India's digital-services ecosystem.
