loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Media & Telecom: Airtel delivers industry leading ARPU growth, Cinema and Music shine in Q1

ICICIdirect Research 07 Aug 2026 DISCLAIMER

In the Telecom space, Bharti Airtel reported strong performance as India wireless business reported healthy key metrics in Q1 such industry leading ARPU growth of 2.7% QoQ to ₹ 264, wireless margins expansion, along with debt reduction of ₹9196 crore QoQ, led by strong Q1 FCF of ₹ 14,390 crore. Note that, Airtel is the second largest telco which enjoys the industry leading ARPU of ~₹ 264, wireless margins of over 60% and strong free cash flows (~₹ 56,600 crore in FY26) and optionality in the form of Airtel Money Africa (to be listed in H2) and Data centre business where it plans to increase its data centre capacity to 1GWh over the next 3- 4 years, thereby, increasing market share from 12% currently at 120-130 MW to 25% eventually. We have a BUY rating, with target price of ₹2,350 for Airtel.


Media: Cinema and Music shine in Q1, with healthy outlook ahead!
PVR Inox Q1 performance was driven by steady content performance in Hindi content, coupled with healthy growth in English/Regional content driving the footfalls which were up ~7.6% YoY at 36.6 million and (Average Ticket Prices) ATP at ₹ 273 was up 7.5% YoY. EBITDA Margin at 12.9% was up 643 bps YoY, led by operating leverage benefits. The company has reduced debt by ~1300 crore in last 3 years (and now net debt free) and is panning majority of new screens under capital-light formats. Furthermore, FY27 content pipeline remains broad-based across Hindi, regional, and Hollywood cinema. We have BUY with a target price of 1400 for PVR Inox
Saregama India also reported strong set of numbers with core licencing revenues at ₹167 crore was up 32.3% YoY while EBITDA margin at 35.4%, was up 8.7 percentage points YoY. Accelerated monetisation through paid subscription (early signs visible as most platforms are pushing for it) will be a game changer for Saregama in medium term. India’s paid streaming penetration remains around 3% and every 1 percentage point increase in penetration translates to over 10 million paying subscribers, and the Indian market has the potential to eventually support nearly 100 million paid subscribers under the right pricing (₹ 100/month, as per the management). The fructification of the same could lead to 2-3x increase in Saregama’s licensing revenues (₹ 614 crore in FY26) in medium term. We have a BUY with a target price of ₹ 650
 

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere