Tariff hikes to push telcos' Arpu to decadal high of Rs 225 in FY26: CRISIL

The near-simultaneous tariff hikes by all major private operators will push up telcos' average revenue per user (ARPU) to a decadal high of over Rs 225 in FY26, domestic ratings agency Crisil said on Tuesday.

Credit profiles of telcos will also improve on the higher profitability and the lower capital expenditure, the agency said.

The ARPU -- one of the most keenly tracked metric influencing the financial health of an entity -- will increase 25 per cent in FY26 when compared to FY24, it said.

"The industry ARPU should dial up to a decadal high of Rs 225-230 by end of next fiscal compared with Rs 182 last fiscal," its deputy chief ratings officer Manish Gupta said.

It can be noted that after the formation of the new government following the general elections, the top three private sector telcos hiked their tariff rates by up to 20 per cent.

Gupta said the increased data usage following the introduction of the 5G services will also help the ARPUs.

He said customers have also been .