Bharti Airtel Stops ₹299 Prepaid Plan; Substitutes With ₹349 Plan Marking 16% Hike

Market snapshot: Bharti Airtel has implemented a nationwide restructuring of its prepaid portfolio, discontinuing popular budget and mid-tier plans including ₹299, ₹579, ₹619, and ₹649. To fill the entry-level daily data segment, Airtel has substituted the ₹299 plan with a higher-priced ₹349 plan, representing a tariff increase of ≈16.72% (derived: ₹349 vs ₹299). This portfolio modification highlights the operator's persistent shift towards driving quality earnings and average revenue per user (ARPU) expansion.

Data Snapshot

• Airtel has discontinued its ₹299, ₹579, ₹619, and ₹649 prepaid plans across India, raising the entry barrier for daily unlimited data.
• The ₹299 daily data plan is replaced by a ₹349 plan, translating into a tariff hike of ≈16.72% (derived: ₹349 vs ₹299) for consumers.
• Bharti Airtel's monthly ARPU improved to ₹264 in Q1 FY27, up 5.6% year-on-year from ₹250 in Q1 FY26.
• Airtel reported consolidated Q1 FY27 revenue of ₹58,539 crore and a net profit of ₹8,167 crore.

What's Changed

• The minimum unlimited daily-data recharge entry-point has jumped from ₹299 to ₹349.
• Airtel's average revenue per user (ARPU) expanded by 5.6% YoY to ₹264 in Q1 FY27 compared to ₹250 in Q1 FY26.
• Consolidated quarterly net profit increased by 37.3% YoY to ₹8,167 crore from ₹5,948 crore in the prior-year period.
• Consolidated quarterly revenue grew by 18.4% YoY to ₹58,539 crore from ₹49,462.6 crore in Q1 FY26.

Key Takeaways

• Nationwide portfolio cleaning removes lower-ARPU budget plans like ₹299, ₹579, ₹619, and ₹649.
• Substitutes the popular ₹299 daily 1GB plan with the ₹349 plan, representing a ≈16.72% (derived: ₹349 vs ₹299) price hike.
• Offers double the data capacity (2GB per day) on the new entry plan to cushion the consumer pricing impact.
• Builds directly on recent operational strength, capitalizing on Airtel's Q1 FY27 ARPU growth to ₹264.

SAHI Perspective

Airtel's decision to discontinue the popular ₹299 pack and shift the entry barrier to ₹349 is a classic case of tariff premiumisation. In the telecom space, raising prices in the guise of providing 'double data' allows operators to filter out low-value subscribers while accelerating ARPU. With its ARPU already leading the industry at ₹264, this restructuring directly services Airtel’s long-term corporate target of crossing the ₹300 mark to ensure capital sustainability.

Market Implications

The deletion of budget-tier daily-data plans nationwide signals a broader industry consensus on tariff repair. It reduces options for budget-conscious consumers while shifting the competitive landscape. With Reliance Jio and Vodafone Idea also restructuring entry points, the overall industry yields are expected to rise, benefiting telecom stock valuations but adding financial pressure to low-tier prepaid users.

Trading Signals

Market Bias: Bullish

The elimination of multiple low-margin prepaid plans, combined with a ≈16.72% price hike on the entry daily-data tier (₹299 plan replaced by ₹349), will immediately support ARPU acceleration and overall margins. This builds on an already robust Q1 FY27 performance where consolidated net profit jumped 37.3% YoY to ₹8,167 crore.

Overweight: Telecommunications

Trigger Factors:

• Sustained increase in overall mobile ARPU towards the ₹300 milestone.
• Data consumption levels and subscriber retention rates under the new pricing model.
• Potential pricing response and competitive moves from Reliance Jio and Vodafone Idea.

Time Horizon: Medium-term (3–12 months)

Industry Context

The Indian telecom industry continues to emerge from a capital-heavy 5G capex cycle. Airtel’s move highlights an industry-wide push to improve return on capital employed (RoCE). By structurally pushing users from ₹299 to ₹349, Airtel and its peers are creating a floor for daily data services to recover massive infrastructure investments.

Key Risks to Watch

• Potential subscriber churn or downgrades to non-daily data voice plans (such as the ₹219 pack) by price-sensitive users.
• Competitive pressure if rivals delay matching similar plan cancellations in key circles.
• Regulatory interventions or consumer backlash against recurring tariff increases.

Recent Developments

In August 2026, Bharti Airtel reported strong Q1 FY27 earnings with net profit rising 37.3% YoY to ₹8,167 crore and revenue climbing 18.4% YoY to ₹58,539 crore. During its 31st AGM on August 3, 2026, the company reappointed Sunil Bharti Mittal as Chairman. Additionally, Nxtra Data, its subsidiary, announced plans to expand digital footprint by acquiring up to 85% stakes in Rochak Systems and Rovision Tech Hub.

Closing Insight

Bharti Airtel's strategic move to cancel multiple budget plans and replace the ₹299 entry tier with the ₹349 plan demonstrates solid execution of its premiumisation strategy. By prioritizing value and margins over sheer subscriber volume, Airtel is solidifying its position as India's highest-monetizing telecom operator.

High Performance Trading with SAHI.