With expected tariff hikes in FY2027, operating income is estimated to rise by about 4-5% to Rs. 4.0-4.2 lakh crore, with OPBIDTA at Rs. 2.1-2.3 lakh crore in FY2027. While 5G capex peaked in FY2025 and is likely to moderate, going forward, monetisation of 5G investments remains uncertain in the near term. Leverage is projected to remain comfortable, with debt declining to almost Rs. 5.8 lakh crore, while credit metrics remain stable, with Debt/OPBIDTA at about 2.6-2.8x.

EXHIBIT: Trend in industry revenues and operating profitability

Source: Annual report of telcos, ICRA Research