New Delhi, June 16 -- India's telecom sector is entering a multi-year growth and recovery phase with ARPU CAGR expected to grow to 7% during FY26-29E, which will likely reduce India's tariff gap, as per a report by Elara Capital.

Noting that the industry consolidation is largely complete and tariffs are still among the lowest globally", the report noted, "The sector is well-positioned for stronger cash flows, faster deleveraging, earnings upgrades, and improved returns."

India's telecom sector is in a multi-year recovery, driven by ARPU improvement, structural data demand, and lower incremental capex. This creates a favorable backdrop for earnings upgrade, deleveraging and higher free cash flow conversion.

According to the report, Indi...