Jio ARPU Growth to Outpace Airtel in Q1 FY26, Says Report
In a new report by JM Financial, telecom giant Reliance Jio is expected to take the lead in ARPU growth for the first quarter of FY26. While Bharti Airtel still leads in absolute ARPU figures, the Jio ARPU growth Q1 FY26 is likely to outpace its rivals thanks to delayed tariff impact and rising Fixed Wireless Access (FWA) user additions.
📈 Jio ARPU Growth Q1 FY26: A Look at the Numbers
According to analysts at JM Financial, Jio’s ARPU is projected to rise 1.8% quarter-on-quarter (QoQ), reaching ₹210 in the April–June 2025 period. Comparatively, Airtel’s ARPU is expected to increase by 1.6% QoQ to ₹249. The higher Jio ARPU growth in Q1 FY26 signals a shift in monetization effectiveness even though Airtel remains ahead in overall value.
🧩 Why Jio’s ARPU Growth Is Outpacing Airtel’s
The focus on Jio ARPU growth Q1 FY26 can be explained through three key developments:
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Delayed Tariff Hike Impact:
Many Jio users, especially those on annual plans, had not been affected by the earlier tariff hikes. As these users begin to recharge under new pricing, the ARPU automatically rises during Q1 FY26. -
Increase in FWA Users:
The addition of high-value Fixed Wireless Access (FWA) customers in the quarter is another driver. These customers contribute more revenue per user than mobile-only subscribers, boosting overall ARPU. -
Tariff Migration Momentum:
Jio has benefited from users gradually shifting to higher-tier plans introduced after the last tariff adjustment. This continues to fuel Jio ARPU growth in Q1 FY26.
📊 Airtel’s Slower ARPU Growth Explained
Although Airtel’s ARPU of ₹249 remains the highest in the industry, JM Financial suggests it is nearing saturation. Most of Airtel’s user base has already transitioned to higher-priced plans, meaning the room for further growth is narrowing. Unlike Jio, Airtel saw the impact of tariff hikes sooner, which now translates into a smaller growth margin in the current quarter.
🔍 Vodafone Idea: Gradual Progress, But Challenges Remain
Vodafone Idea (Vi) is also projected to show a 1.6% QoQ ARPU increase, but it lags far behind in absolute terms. Several factors limit its potential:
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Large 2G customer base, which yields low ARPU
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Network coverage and quality issues
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Competitive disadvantage compared to Jio and Airtel
However, Vi is rapidly upgrading its infrastructure and pushing 4G/5G migration, which could support long-term growth.
💬 Expert View: Why Jio ARPU Growth Q1 FY26 Matters
JM Financial emphasized that Jio ARPU growth in Q1 FY26 is a sign of successful monetization without compromising user base expansion. Their report notes:
“Jio’s ARPU uplift is driven by recharges under new tariff slabs and ongoing fixed wireless access deployments. We expect this trend to strengthen in the upcoming quarters.”
This growth momentum is important for sustaining investments in 5G and digital services. ARPU remains the most important metric for revenue optimization in a market where subscriber numbers are nearing saturation.
📦 Telecom Sector Outlook: FY26 and Beyond
The spotlight on Jio ARPU growth Q1 FY26 reflects the industry’s shift toward profitability-focused metrics. As subscriber acquisition slows, telecom operators are under pressure to extract more value per user. Here’s what lies ahead:
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Jio will continue leveraging pricing strategies and diversified offerings to increase ARPU.
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Airtel is expected to focus on enterprise solutions and bundled digital services to maintain its ARPU leadership.
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Vodafone Idea will need to sustain network upgrades and gradually move low-paying customers to 4G/5G to grow ARPU.
🔁 Summary: Jio Leads in Growth, Airtel in Value
To summarize the Q1 FY26 ARPU performance:
| Telco | ARPU (₹) | QoQ Growth |
|---|---|---|
| Reliance Jio | 210 | 1.8% |
| Airtel | 249 | 1.6% |
| Vodafone Idea | ~135–145 (est.) | 1.6% |
While Airtel’s ARPU remains the highest, Jio ARPU growth Q1 FY26 sends a strong signal: Jio is maximizing revenue from every user at a faster pace, setting the stage for stronger financial performance in future quarters.
🧠 Why ARPU Still Reigns Supreme in Telecom
Average Revenue Per User (ARPU) is the most critical indicator of financial health for telecom companies. With mobile subscriber numbers reaching maturity in India, growth now depends on per-user monetization. The focus on Jio ARPU growth in Q1 FY26 underlines this new business reality.
Source: Telecomtalk
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