Synopsis:
Macquarie commented positively on the telecom sector, staying bullish on Reliance, Airtel, and Tata Communications, while remaining cautious on Indus Towers, Vodafone Idea, and Bharti Hexacom.
Macquarie reiterated its positive stance on the telecom sector, citing resilient fundamentals even under conservative ARPU assumptions. It expects Reliance Jio’s shift toward prioritizing “value over volume” to deliver stronger EBITDA growth compared to Bharti Airtel. The brokerage also added Tata Communications to its Asia Marquee list alongside Reliance, while maintaining its constructive view on Airtel.
1. Reliance Industries Ltd
Reliance Industries Limited is an Indian conglomerate that operates in energy, materials, retail, and digital sectors. Its main business segments are oil to chemicals (O2C), oil and gas, retail, and digital services. The O2C segment includes refining, petrochemicals, fuel and aviation retail, polymers, polyesters, and elastomers, all supported by extensive manufacturing and supply-chain assets.
The Oil and Gas segment is dedicated to the exploration, development, and production of crude oil and natural gas. The Retail segment provides consumer retail and related services, whereas the Digital Services segment provides a diverse set of digital offerings.
The company has a market capitalization of Rs. 18,48,535.76 crore and is trading at Rs. 1,366.50. Macquarie has maintained an Outperform rating on the stock and hiked the target price from Rs. 1,580 to Rs. 1,650, suggesting a potential upside of 20.75 percent from the current price.
2. Bharti Airtel Ltd
Airtel, headquartered in India, is a major global telecom provider serving over 600 million customers across 15 countries in India and Africa, along with operations in Bangladesh and Sri Lanka. It is India’s largest integrated communications company and ranks among the world’s top three mobile operators.
Its portfolio spans 4G/5G mobile services, high-speed broadband, digital entertainment, payments, and enterprise solutions like cloud, cybersecurity, and IoT, while also providing passive infrastructure services through its subsidiary, Indus Towers Ltd.
Bharti Airtel Ltd has a market capitalization of Rs. 10,71,881.76 crore and its stock is trading at Rs. 1,881. Macquarie has maintained an Outperform rating on the stock with the target price Rs. 2,050, suggesting a potential upside of 8.98 percent from the current price.
3. Tata Communications Ltd
Tata Communications, founded as VSNL in 1986 and acquired by the Tata Group in 2002 after the government’s disinvestment, is a leading global digital ecosystem enabler.
With a strong presence in emerging markets and a global infrastructure, it offers managed solutions to multinational corporations and service providers, working with 300 Fortune 500 companies on communication, cloud, mobility, collaboration, connected solutions, network, and data center services.
The company has a market capitalization of Rs. 44,203.50 crore and is currently trading at Rs. 1,551. Macquarie has maintained an Outperformed rating on the stock with the target price Rs. 2,210, suggesting a potential upside of 42.49 percent from the current levels.
4. Indus Towers Ltd
Indus Towers Limited, formed by the merger of Bharti Infratel and Indus Towers, is one of the world’s largest telecom tower companies, with more than 2.5 lakh towers and 4.1 lakh co-locations across all 22 telecom circles in India as of June 30, 2025. Serving major clients such as Bharti Airtel, Vodafone Idea, and Reliance Jio, the company plays an important role in meeting India’s growing connectivity needs while adhering to its mission of “Putting India First and Connecting Lives Across the Nation.
The company has a market capitalization of Rs. 86,821.94 crore and is currently trading at Rs. 329. Macquarie has maintained an underperform and rating with the target price of Rs. 300, indicating a potential downside of 8.81 percent from current levels.
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5. Vodafone Idea Ltd
Vi Business, earlier known as Vodafone Idea Business Services, offers a wide range of enterprise-grade solutions catering to businesses from small offices to large multinationals. Vodafone Idea Limited, a partnership between the Aditya Birla Group and Vodafone Group, provides pan-India voice and data services across 3G, 4G, and 5G platforms.
Vodafone Idea Ltd has a market capitalization of Rs. 73,889.95 crore and its stock is trading at Rs. 6.82. Macquarie has maintained an underperform and rating and trimmed price from Rs. 6.5 to Rs. 5, indicating a potential downside of 26.69 percent from current levels.
5. Bharti Hexacom Ltd
Bharti Hexacom Limited, which operates under the Airtel brand, offers communication services in Rajasthan and the Northeast telecom circles of India. It provides mobile services (prepaid, postpaid, internet, roaming, and digital entertainment) as well as fixed-line and broadband services for homes and offices. It also provides digital solutions such as Airtel Payments Bank, Xstream, Thanks, Wynk, and Direct-to-Home to both individual and business customers.
The company has a market capitalization of Rs. 87,510 crore and trades at Rs. 1,751.40. Macquarie has maintained an underperform and rating and trimmed price from Rs. 1,480 to Rs. 1,380, indicating a potential downside of 21.21 percent from the current market price.
Written by Akshay Sanghavi
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