Bharti Airtel has made an important change to its prepaid plans by discontinuing its Rs 299 entry-level plan and making the Rs 349 plan the new starting option for customers looking for daily data benefits.
The move has caught the attention of market experts and brokerages, who believe it could help Airtel earn more from its prepaid customers.
The change could also encourage other telecom operators, including Reliance Jio and Vodafone Idea, to make similar pricing adjustments.
Airtel’s Rs 299 Plan Removed, Rs 349 Plan Becomes Entry Option
The discontinued Rs 299 plan offered 1GB of data per day for 28 days.
Airtel’s Rs 349 plan, which offers 1.5GB of data per day for 28 days, will now effectively become the entry-level option for customers looking for a daily data plan.
Market expert Anil Singhvi described the move as positive for Airtel because it effectively raises the starting tariff.
According to Singhvi, the move could improve Airtel’s average revenue per user (ARPU).
He also said the broader telecom sector could benefit if other operators make similar changes.
Brokerages Expect Airtel’s ARPU to Improve
Several brokerages have reacted positively to Airtel’s latest pricing move.
Morgan Stanley retained its Overweight rating on Airtel and set a target price of Rs 2,442.
It believes removing the lower-priced plan could push some customers towards higher-value plans.
The brokerage estimates that Airtel’s ARPU could potentially increase by Rs 8-12 per month.
Citi also retained its Buy rating, with a target price of Rs 2,230.
It expects the move to support Airtel’s premiumisation strategy and estimates an ARPU benefit of around Rs 4 per month.
Jefferies maintained its Buy rating and raised its target price from Rs 2,360 to Rs 2,400.
Airtel’s ARPU stood at Rs 264 in Q1 FY27.
If ARPU increases by Rs 4-12, it could move to around Rs 268-276, representing an increase of roughly 1.5% to 4.5%.
Motilal Oswal Sees Bigger ARPU Potential
Motilal Oswal also maintained its Buy rating on Airtel, with a target price of Rs 2,335.
The brokerage noted that the change represents roughly a 17% increase in Airtel’s entry-level unlimited plan.
However, the actual impact will depend on how many customers were using the Rs 299 plan and how many of them move to higher-priced plans.
Motilal Oswal estimates that selective pricing changes could potentially increase Airtel’s blended ARPU by around 6-7% over the medium term.
However, it also cautioned that a wider industry-wide tariff hike may take more time.
Airtel Shares Could Have Up to 24% Upside
Airtel shares were trading at around Rs 1,963.50 on August 13, 2026.
Based on brokerage targets, analysts see further upside in the stock:
| Brokerage | Target Price | Potential Upside |
|---|---|---|
| Morgan Stanley | Rs 2,442 | 24.4% |
| Jefferies | Rs 2,400 | 22.2% |
| Motilal Oswal | Rs 2,335 | 18.9% |
| Citi | Rs 2,230 | 13.6% |
Morgan Stanley’s Rs 2,442 target represents the highest potential upside of around 24.4% from the current market price.
What Should Airtel Investors Watch Now?
The biggest question is whether the plan change will lead to a sustained increase in ARPU.
Investors will be watching how many customers move from the discontinued Rs 299 plan to higher-priced plans.
Another important factor will be the response from competitors.
If Reliance Jio and Vodafone Idea also increase their entry-level tariffs, Airtel could benefit from a broader improvement in telecom pricing.
Anil Singhvi expects the stock could see further buying interest.
He suggested a trading stop-loss of Rs 1,930, with targets of Rs 1,970, Rs 1,990 and Rs 2,025.
How Has Airtel Stock Performed?
Airtel shares were trading at Rs 1,963.50 on August 13, 2026.
The stock’s 52-week high is Rs 2,174.50, recorded on November 21, 2025.
This means the stock is currently around 9.7% below its 52-week high.
Airtel has delivered a 0.91% return over the past week and 3.37% over the past month.
However, its year-to-date return remains negative at around 6.85%.
For investors, the key factors to watch now are Airtel’s ARPU growth, customer movement to higher-priced plans and how competitors respond to the company’s latest pricing strategy.
