Telecom ARPUs to touch decade-high mark in FY26, says Crisil Research

Telecom companies in India are projected to reach a decade-high average revenue per user (ARPU) of Rs 225 in the next fiscal year, driven by recent tariff increases and increased data consumption. Crisil Ratings anticipates a 25% ARPU growth by 2025-26. This growth, alongside reduced capital expenditure and debt reduction, is expected to enhance the credit profiles of telcos and improve their return on capital invested (RoCE) to around 11% by fiscal 2026.