Jefferies has identified Jio's planned mega IPO in the first half of 2026 as a crucial re-rating catalyst for Bharti Airtel , raising its target price to ₹2,760 and maintaining the stock as its top pick in the Indian telecom sector. The global brokerage argues that the upcoming listing will drive tariff hikes and increase sector weight in indices, working in Bharti's favour rather than against it.

Target Price Revisions and Market Impact

The brokerage has made significant upward revisions to its target prices for key telecom stocks:

Billionaire Mukesh Ambani had guided to listing Jio Platforms Ltd in the first half of 2026, which analysts expect to be largely an offer for sale by financial investors while strategic shareholders like Reliance, Meta, and Google remain invested.

Jio IPO as Tariff Hike Catalyst

Jefferies argues that once Jio is listed, public market scrutiny will sharpen the operator's focus on monetisation and returns, making fresh mobile tariff hikes in 2026 more likely. According to the brokerage's sensitivity analysis, a 10-20% tariff increase is needed for Jio's equity valuation to move closer to Bharti's and deliver double-digit internal rate of return to existing private equity investors.

Why Bharti May Re-rate Alongside Jio

Jefferies expects Jio's IPO to benefit rather than create an overhang for Bharti Airtel, citing the stock's 32% gain in 2025 despite more than $5.00 billion of promoter share sales. With Bharti's India business already trading around 13 times EV/EBITDA, the brokerage expects Jio to be priced off Bharti's multiples, leaving limited room for de-rating.

Once Jio is included in major benchmarks with roughly 33% free float, the neutral weight of telecom in headline indices such as Nifty50 and MSCI India could rise from 4-5% to 7-8%. This increased sector allocation is expected to benefit Bharti along with Jio through incremental passive and benchmark-driven flows.

Financial Projections and Growth Outlook

Jefferies expects strong financial performance from Bharti Airtel in the coming years:

On a three-year view, the brokerage builds in about 25% cumulative mobile tariff hikes over FY27-28, translating into roughly 16% ARPU CAGR between FY26 and FY28. Additional growth optionality from enterprise, data centre and cloud services could add 1-3 percentage points of incremental growth annually over the next five years.

Sector Backdrop and Competitive Dynamics

Jefferies expects a 15% across-the-board mobile tariff hike in June 2026, two years after the last round, as operators pivot from market share grabs to monetisation. The brokerage sees scope for sector revenues to accelerate to 16% year-on-year growth, powered by ARPU expansion of about 14%.

Regarding Vodafone Idea, a potential five-year moratorium on AGR dues could cut the operator's government-dues outflows by 35-85% over FY26-30, improving its capital raising prospects. However, VIL would still need a cumulative 45% tariff hike over FY27-30 just to meet spectrum and AGR commitments, reinforcing the case for industry-wide pricing increases.

Bharti Airtel witnessed another substantial block trade on the National Stock Exchange (NSE), highlighting continued institutional activity in the telecom major's shares. The latest large-scale transaction demonstrates sustained investor interest in one of India's leading telecommunications service providers.

Latest Block Trade Details

The recent NSE block trade involved a significant volume of shares with specific pricing parameters that indicate ongoing institutional participation.

Market Significance

Block trades represent large-volume transactions typically executed by institutional investors, mutual funds, or other significant market participants. These transactions are conducted outside the regular market to avoid impacting the stock's market price during execution. The transaction value of ₹15.98 crores indicates meaningful institutional activity in Bharti Airtel's shares.

The execution price of ₹2,086.70 per share provides a reference point for the stock's institutional valuation during the transaction period. Such block deals often reflect strategic investment decisions by large investors and can indicate confidence levels in the company's prospects.

Transaction Overview

The block trade encompassed approximately 76,602 shares, representing a significant volume that warranted execution through the block deal mechanism. This mechanism allows large transactions to be completed efficiently without causing excessive volatility in the stock's regular trading price, benefiting both buyers and sellers in substantial transactions.

The latest block trade follows previous institutional activity in Bharti Airtel shares, suggesting continued interest from large investors in the telecommunications sector leader.