Mumbai

According to a report by Jefferies, Reliance Jio continues to outperform, which bodes well for the overall tariff outlook of the telecom sector

It said, "Jio's continued outperformance vs. Bharti on active subscriber additions augurs well for the sector's overall tariff outlook".

The increase in active subscriber base resumed in May 2025 after a brief dip in April. With this, calendar year-to-date (CYTD) additions reached 19.7 million.

Jefferies noted that this was the highest monthly active subscriber addition in the last two years, reflecting a strong growth potential for the telecom sector.

In terms of reported numbers, Jio's overall subscriber base increased by 2.7 million in May 2025. However, its active subscriber base grew even more significantly, by 5.5 million. The company also saw an increase of 1.3 million in its urban subscriber base month-on-month.

At the sector level, active subscribers increased by 7.3 million during May, reaching a total of 1,080 million. This marked the highest monthly addition in the past two years and more. The growth was primarily led by Jio, which added 5.5 million active subscribers, followed by Bharti Airtel with 1.3 million additions.

Subscriber growth was particularly strong in A-Circles and B-Circles, which together added 9 million users and account for 75% of the sector's subscriber base. In contrast, Metro Circles recorded a decline of 1.9 million subscribers.

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The report also stated that Jio's market share gains, combined with Vodafone Idea's continued decline, may lead to further market share growth for both Jio and Bharti. This trend supports the potential for future tariff hikes.