Bharti Airtel, Vodafone Idea to Benefit from Jio's Data Tariff Hike

Reliance Jio's increase in entry-level data tariffs is expected to boost its FY26 revenue by 4-5%. This move may trigger similar tariff hikes by Bharti Airtel and Vodafone Idea, benefiting the entire sector. Jio's average revenue per user (ARPU) for Q1 FY26 was Rs 210, compared to Bharti Airtel's Rs 250 and VIL's Rs 177. Jio discontinued its Rs 249 1GB/day data plan, making the Rs 299 1.5GB/day plan the new entry-level data plan.

Title: Reliance Jio's Tariff Hike: A Boost for FY26 Revenue

Reliance Jio's recent move to discontinue its entry-level 1GB/day data plan and introduce a new 1.5GB/day plan at Rs 299 is expected to significantly boost its FY26 revenue by 4-5%. This strategic shift, aligned with the pricing structures of competitors Bharti Airtel and Vodafone Idea, is likely to have a ripple effect across the entire sector.

The discontinuation of Jio's Rs 249 1GB/day plan has led to a new entry-level plan of Rs 299 for 1.5GB/day. This move is anticipated to increase Jio's average revenue per user (ARPU), a key industry metric, by 20% from Rs 211 to Rs 253. According to analysts, this could result in an ARPU uplift of Rs 8.4, or 4% of the Q1 ARPU of Rs 208.8.

Brokerage firms have expressed varying views on the impact of this tariff hike. While IIFL estimates that the 20% tariff hike will lift overall revenue by under 2%, Axis Capital projects a stronger impact, expecting Jio's FY26E revenue and ARPU to rise by 4–5%.

The move is not only expected to benefit Jio but also its competitors. Bharti Airtel and Vodafone Idea are likely to follow suit with their own tariff hikes, potentially leading to a more competitive and stable pricing environment in the Indian telecom sector.

Reliance Industries Ltd (RIL) shares gained more than 2% on Tuesday, August 19, 2025, reflecting investor confidence in Jio's strategic move. The stock's performance is buoyed by positive brokerage ratings and expectations of improved financial metrics.

In conclusion, Jio's tariff revision is a strategic maneuver that is expected to have a positive impact on its revenue and ARPU. The move aligns with industry standards and could lead to a more stable and competitive market environment.

References:
[1] https://stocktwits.com/news-articles/markets/equity/reliance-stock-gains-as-jio-hikes-entry-tariffs-fmcg-arm-expands-into-beverages/chsgQ7XRdgQ
[2] https://www.cnbctv18.com/market/reliance-industries-share-price-in-focus-after-jio-indirectly-hikes-tariffs-bharti-airtel-vodafone-idea-19655694.htm
[3] https://www.business-standard.com/companies/news/jio-data-tariff-move-good-news-for-airtel-voda-idea-125081901256_1.html
[4] https://www.finblage.com/news/reliance-industries-shares-gain-2-percent-as-jio-revises-prepaid-tariffs-and-brokerages-stay-bullish
[5] https://www.ndtvprofit.com/markets/reliance-industries-share-price-gain-2-after-jio-base-tariff-rises