The general public may face the brunt of inflation in 2026, as reports suggest that companies are preparing to raise tariffs again after approximately two years, directly impacting consumers' wallets. Mobile tariffs could increase by 15 percent, and analysts estimate that this move by telecom companies could more than double the sector's revenue growth rate by FY27.

A report by Jefferies states that mobile tariffs in India are expected to increase by 15 percent in June 2026, a timeline that aligns with past industry trends. The report also highlights that increasing data demand, a shift towards postpaid plans, and growing data consumption are continuously driving up India's mobile Average Revenue Per User (ARPU).

Recharge Plans Price Hike: Revenue Expected to Increase

The increase in recharge prices and strategic pricing adjustments are expected to boost sector revenue growth to 16 percent year-on-year (YoY) in FY27, significantly higher than the estimated 7 percent YoY growth in FY26. Given the possibility of a 15 percent tariff hike in June 2026, analysts are projecting a 14 percent YoY growth in ARPU for FY27. However, the report cautions that subscriber numbers may remain subdued as consumers adjust to the increased prices.

According to reports, Reliance Jio is expected to implement a price hike of 10 to 20 percent. This move aims to bring its valuation closer to that of Airtel and provide investors with a double-digit internal rate of return. Meanwhile, the situation remains challenging for Vodafone Idea (Vi); the company will need to increase mobile service rates by a total of 45 percent between FY27 and FY30 to meet its outstanding obligations.

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