Bharti Airtel can see a 2% rise in its average revenue per user (ARPU) after the telecom major's latest move to withdraw four entry-level prepaid unlimited plans, including its most popular Rs 299 pack, JM Financial said.

The telco withdrew four prepaid plans priced at Rs 299, Rs 579, Rs 619 and Rs 649, while leaving the entry-level Rs 199 and Rs 219 plans unchanged. The company’s subscribers for the popular Rs 299 plan will now have to opt for the Rs 349 pack, implying a price increase of around 16%.

JM Financial noted that other telecom companies have not made any changes so far, but are likely to follow Bharti Airtel which removed select entry-level prepaid data plans across 28–60 day validity. The domestic brokerage believes this is not an across-the-board tariff hike. Instead, it is plan modification to push subscribers to upgrade to higher GB and higher ARPU plans (by making Rs 349 28-day 1.5GB/day as its entry-level data plan).

The brokerage highlighted that a similar move was seen last year in August when the telco had withdrawn its Rs 249 entry level 1GB/day 28-day plan from digital channels. It also had discontinued its Rs 249 24-day plan 1GB/day, making Rs 299 28-day 1GB/day as its entry-level data plan, which has now been discontinued.

Assuming 10% of Bharti Airtel’s subscribers upgrade to new plans at a Rs 50 higher tariff, this can drive an uptick of around 2% in wireless ARPU and 1% in India EBITDA and valuation, JM Financial said.

The domestic brokerage has a ‘Buy’ call on the shares of Bharti Airtel, with a target price of Rs 2,400 apiece, implying more than 23% upside potential from the stock’s previous closing price of Rs 1,945 apiece. It argues that the industry's wireless ARPU is likely to clock a 12% CAGR over FY26-29, driven by regular tariff hikes and multiple premiumisation strategies.

Bharti Airtel shares were trading with marginal gains at Rs 1,954 apiece on Thursday morning. The stock has gained around 1% in a week and 3% in a month, but is overall down 7% in 2026 so far.

The shares of the telecom major have gained over 5% in a year. In the longer term, the stock has delivered 126% returns over three years and 212% in five years.