ICRA expects satellite communication to complement the terrestrial network in the medium term and aid in expanding communication networks to remote areas and difficult terrains. Moreover, currently for customers, satellite communication remains an expensive proposition vis-à-vis existing networks.

Industry capex expected to be around Rs. 3 lakh crore over the next 4-5 years, thus keeping the total debt elevated. The total debt stood at Rs. 6.45 lakh crore as on March 31, 2025. The industry’s debt/OPBIDTA is likely to remain at 3.4-3.6x and interest coverage at 3.8-4.0x for FY2026, with steady improvement, going forward.

EXHIBIT: Trend in industry revenues and operating profitability

Source: Annual report of telcos, ICRA Research