JM Financial Picks Airtel Over Jio for 2026 Telecom Supremacy

Investment bank JM Financial has issued a bullish outlook favoring Bharti Airtel over Reliance Jio for calendar year 2026 in India's hyper-competitive telecom duopoly. Analysts highlight Airtel's structural advantages in average revenue per user (ARPU) expansion, disciplined capex, and ability to capture premium postpaid segments.

Despite Jio's subscriber dominance and aggressive 5G rollout, JM sees Airtel better positioned to benefit from inevitable tariff corrections, enterprise growth, and spectrum efficiency. Airtel's lower leverage provides flexibility for dividends and buybacks, contrasting Jio's capital-intensive expansion phase.

The report underscores telecom sector consolidation toward profitability over volume wars.

Key Highlights:

JM's Pick: Bharti Airtel leads Jio in 2026 outlook.

Airtel Strengths: Higher ARPU trajectory, lower debt, 5G monetization.

Jio Challenges: Subscriber lead but capex-heavy growth model.

Catalysts: Tariff hikes, enterprise data demand, postpaid expansion.

Market Implication: Airtel positioned for valuation re-rating.

Source: JM Financial research report on telecom sector, December 17, 2025.