India’s telecom sector is facing a challenging phase as Bharti Airtel reports a sharp fall in quarterly profits while the industry continues to grapple with massive government dues. Analysts, however, see potential growth opportunities for tower companies amid network expansion plans.
Bharti Airtel’s consolidated net profit for the third quarter of the 2025–26 financial year dropped by 55 per cent year-on-year, falling to ₹6,630 crore. The decline comes despite a nearly 20 per cent growth in revenue, highlighting rising operational costs and statutory obligations weighing on the company. Experts point to regulatory charges, employee-related provisions, and other expenses as key contributors to the steep profit decline.
The broader telecom industry continues to struggle with Adjusted Gross Revenue (AGR) liabilities, now estimated at ₹1.77 lakh crore. Vodafone Idea accounts for nearly half of this outstanding amount, placing the operator under financial pressure while it works to stabilise operations and meet regulatory commitments. The dues stem from a Supreme Court ruling on revenue-sharing calculations, which has long been a contentious issue in the sector.
While telcos face financial strain, tower infrastructure providers may benefit from the ongoing developments. Vodafone Idea’s planned network expansion could create thousands of new tower tenancies for Indus Towers over the next two years. Analysts suggest this could offset some pressure on the telecom ecosystem and support growth in the passive infrastructure market.
The current environment underscores both the financial challenges and potential opportunities in India’s telecom landscape. Operators must balance regulatory obligations with network growth, while infrastructure companies stand to gain from increased tenancy and capital investment in expanding networks.
