Shares of telecom operators remained in focus on Tuesday after the Bombay High Court quashed the government's 2012 decision to impose a retrospective one-time spectrum charge (OTSC), a move estimated to provide a combined relief of nearly Rs 20,000 crore to Bharti Airtel and Vodafone Idea.
In early trade, Vodafone Idea shares rose 0.9% to Rs 14.53, while Bharti Airtel gained 0.2% to Rs 1,817.60.
The court ruled in favour of the telecom operators, striking down the retrospective levy and directing the government to return the bank guarantees submitted against the disputed charge. The ruling removes a long-standing regulatory overhang for both companies and is particularly significant for Vodafone Idea, which continues to manage substantial spectrum-related liabilities.
Adding to the positive sentiment, brokerage Elara Capital initiated coverage on major telecom stocks, citing a multi-year sector recovery driven by tariff hikes, rising smartphone penetration, increasing data consumption and continued network expansion.
Elara initiated Bharti Airtel with a Buy rating and a target price of Rs 2,387, implying an upside potential of nearly 31% from current levels. It also initiated coverage on Bharti Hexacom with a Buy rating and a target of Rs 1,756, while Indus Towers received an Accumulate rating with a target price of Rs 491.
According to the brokerage, India's telecom sector is entering a structural growth phase, supported by accelerating ARPU growth. Elara expects industry ARPU CAGR to rise to around 7% between FY26 and FY29, aided by tariff increases and higher data monetisation.