A Study on Profitability Analysis of the Indian Telecom Sector

The Indian telecom sector entered a consolidation phase after 2019, marked by intense price competition, tariff hikes, heavy spectrum obligations and rapid data growth, all of which have reshaped operators’ profitability profiles. This study analyses the profitability of key Indian telecom operators over the five‑year period 2019‑20 to 2023‑24 using secondary data from standalone balance sheets and income statements of major service providers. Profitability is evaluated through ratios such as Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin, Operating Margin and Return on Capital Employed (ROCE). The study adopts a descriptive and analytical approach, applying ratio analysis and simple trend analysis to examine inter‑firm and inter‑temporal differences. Recent empirical work generally finds that Bharti Airtel has emerged as the strongest performer in terms of profitability and asset efficiency, while Vodafone Idea and BSNL continue to face persistent losses and financial stress despite some improvement in revenues and ARPU at the sector level. The present paper contributes by focusing specifically on 2019‑20 to 2023‑24, a period when tariff hikes and data‑led growth began to restore sector revenue, and by grounding profitability analysis in standalone financial statements of leading operators.