BSE Telecom index up by 3%, led by the Bharti twins

BSE Telecommunication index was trading 3 percent higher on February 7, with leading contributors to this uptick being Bharti Hexacom and Bharti Airtel. The shares of Bharti Hexacom saw a surge of over 7 percent (trading 7.19 percent higher at 1:00 pm) while Bharti Airtel shares gained close to 4 percent (trading 3.77 percent higher at 1:00 pm).

Indus Towers shares increased as much as by 3 percent. Tata Communications shares increased as much as by 2 percent. HFCL share prices increased about 2 percent, followed by Suyog, Tejas Network, Vindhya Telelinks, and Optiemus Infracom in terms of volume, on February 7.

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Yesterday, Indus Towers had announced acquisition of mobile sites of Bharti Airtel and Bharti Hexacom assets at Rs 3,308.7 crore. It will be conducted by way of slump sale and includes approximately 16,100 telecom towers as a part of the deal.

Telecom operators have been strategizing for their upcoming payments related to deferred spectrum costs and adjusted gross revenue (AGR) dues, which are due after the moratorium concludes in September 2025.

The higher revenues of FY25 Twere rather driven by spectrum allocations to BSNL and the Railways, substantial advance payments from Bharti Airtel for past spectrum auctions, along with proceeds from the second 5G spectrum sale. About Rs 11,340.78 crore was raised from the 5G auction and a portion of it was included in FY25's revenue calculation.

Finance Minister Nirmala Sitharaman announced in the Union Budget 2025, a new scheme with the objective of providing broadband connectivity to select government schools and health centres. Amid this renewed policy focus on the sector, the Indian government’s telecom revenue was rather projected to decline by over 33 percent to Rs 82,442.84 crore in FY26 from Rs 1,23,357.20 crore in the current fiscal, according to budget documents.Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.