'Telcos may see steady Q2 as SUC saving aid margins; 5G updates key focus'

Telecom companies are expected to witness "steady" revenue growth in Q2FY23 with slight sequential uptick in average revenue per user albeit softer net additions, while SUC (spectrum usage charges) savings are seen lifting margins, say analysts.

Amid mega 5G network deployments by telcos, market analysts will be keenly tuning in to management commentaries on pace of roll-out for next-generation services, capex outlook and markers on tariff hikes.

"We expect Indian telcos to report a steady quarter with stable ARPUs and slowing net adds. Margins would be higher q-o-q as we get 45-50 days benefits of lower SUC," BofA Securities said in its Q2 earnings preview for the sector.

India's largest telecom operator Reliance Jio is expected to come out with its Q2 report card on October 21 (Friday), while Bharti Airtel is scheduled to announce its results on October 31.

In the earnings' preview for the sector, ICICI Securities anticipated "steady revenue growth" and said margins may jump on .