Mobile users may need to prepare for higher expenses in 2026, as telecom companies are reportedly planning another round of tariff hikes. According to a recent report, mobile recharge prices in India could increase by up to 15 percent starting June 2026. If implemented, this would be the first major tariff hike in nearly two years and would directly impact crores of users across the country.

What does the report say?

According to a report by Jefferies, Indian telecom operators are expected to raise mobile tariffs by around 15 percent over the next two years, with the first increase likely from June 2026. This timeline aligns with earlier industry cycles, where price hikes were introduced after long gaps.

The report highlights that rising data consumption, increasing preference for postpaid plans, and higher overall data usage are steadily pushing up India’s average revenue per user (ARPU). These factors are encouraging telecom companies to revise pricing.

Revenue growth likely to accelerate

Analysts believe that higher recharge prices and strategic tariff adjustments could significantly boost the telecom sector’s revenue. Sector-wide revenue growth is expected to rise to about 16 percent year-on-year in FY27, compared to an estimated 7 percent growth in FY26.

The report also projects ARPU growth of nearly 14 percent in FY27, assuming the proposed 15 percent tariff hike is implemented. However, it cautions that subscriber additions may slow down, as users may take time to adjust to higher prices.

What about major telecom companies?

• Reliance Jio is expected to raise tariffs by 10 to 20 percent. The move is aimed at improving returns for investors and bringing its valuation closer to that of its main competitor.

• Bharti Airtel is also expected to benefit from sector-wide tariff hikes, as higher ARPU directly strengthens profitability.

• Vodafone Idea remains under significant financial pressure. According to analysts, the company may need to raise mobile service tariffs by as much as 45 percent between FY27 and FY30 to meet its financial obligations and dues.

What it means for consumers

If these hikes are implemented, mobile users may have to pay noticeably more for both prepaid and postpaid plans from mid-2026. While telecom companies argue that higher tariffs are necessary to sustain network investments and financial health, consumers are likely to feel the pinch, especially amid ongoing inflation.