Bharti Airtel Share Price Rises as Company Withdraws ₹249 Recharge Plan; Minimum Tariff Now ₹319
- 20th August 2025
- 12:30:00 PM
- 4 min read
Mumbai | August 20 – Shares of Bharti Airtel, the country’s second-largest telecom operator, climbed in early trade on Wednesday after the company announced the withdrawal of its ₹249 prepaid plan offering 1GB/day data. The stock gained 2.16% to hit a day’s high of ₹1,951, before trading 1.35% higher at ₹1,935.40 apiece on the National Stock Exchange (NSE) at 10:19 AM.
The tariff change, effective immediately, means Airtel subscribers will now need to opt for a higher-value plan. The new entry-level option is the ₹319 recharge pack, which provides 1.5GB of daily data. The move aligns with Reliance Jio’s recent pricing strategy, where the Mukesh Ambani-led operator discontinued its own 1GB/day plan and replaced it with a 1.5GB/day pack at ₹299, roughly 17% costlier. Industry observers expect Vodafone Idea, the country’s third-largest operator, to adopt a similar approach in the coming months.
Also Read: Jio vs Airtel Q1FY26: Growth vs Margin, Who’s Ahead?
Focus on ARPU Gains
By phasing out the lower-end plan, Airtel aims to push customers toward higher data consumption and lift its average revenue per user (ARPU). Analysts expect that nudging subscribers from 1GB/day to 1.5GB or 2GB/day packs could lead to a 4–8% ARPU boost.
“Recent tariff tweaks by Jio and Airtel are a step in the right direction. They reflect the sector’s continued focus on improving subscriber monetisation,” said Vikram Kasat, Head of Advisory at PL Capital. He added that Bharti Airtel remains the brokerage’s preferred pick in the telecom sector with a ‘Buy’ rating and a target price of ₹2,500.
The withdrawal of the 1GB/day pack also signals that telecom operators are confident of passing on higher costs to consumers, supported by robust demand for data and growing dependence on digital services.
Bharti Airtel Q1FY26 Performance
The tariff change comes shortly after Bharti Airtel reported a strong set of financial results for the first quarter of the current financial year. The company posted a net profit of ₹5,948 crore, a sharp 43% increase from ₹4,160 crore in the year-ago period.
| Metric | Q1FY26 | Q1FY25 | YoY Growth |
| Net Profit | ₹5,948 crore | ₹4,160 crore | 43% |
| Revenue from Operations | ₹49,463 crore | ₹38,506 crore | 29% |
| EBITDA | ₹28,167 crore | ₹21,429 crore* | 31% |
| EBITDA Margin | 56.90% | 55.6%* | — |
| India Business Revenue | ₹37,585 crore | ₹29,160 crore* | 29% |
| ARPU (Average Revenue Per User) | ₹ 250 | ₹ 211 | 18.50% |
*Q1FY25 base figures are estimated based on company’s reported YoY growth percentages.
Sector-Wide Pricing Realignment
The latest pricing move by Bharti Airtel is part of a broader sector realignment. With both Airtel and Reliance Jio scrapping their 1GB/day recharge packs, the effective entry point for prepaid customers has shifted closer to ₹300 and above. Analysts believe this will set a new pricing benchmark for the industry, allowing operators to strengthen balance sheets and support investments in 5G infrastructure.
The Indian telecom sector, dominated by Airtel and Jio, has faced sustained pressure to increase ARPU levels, which have lagged global peers. By pushing subscribers towards higher-value plans, telcos are expected to generate more stable cash flows, critical for funding network expansion and spectrum costs.
Also Read: Ola Electric Share Price Surges 24% in Two Days: What’s Driving the EV Stock Rally?
Outlook
Bharti Airtel’s move to align tariffs with Reliance Jio reflects a coordinated push to improve sector profitability. With strong quarterly earnings, rising ARPU, and ongoing tariff optimisation, analysts expect Airtel to maintain its growth momentum in the current financial year.
We remain bullish on the stock, with reiterating a ‘Buy’ rating and a target price of ₹2,500, citing the company’s pricing power, subscriber upgrades, and diversified business portfolio.
As the industry shifts away from low-value data packs, ARPU growth is set to remain the key driver of profitability, placing Bharti Airtel in a strong position to capitalise on India’s fast-growing digital economy.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
