This next-generation technology isn’t merely about faster internet speeds; it’s about revolutionizing industries and reshaping economies. India, one of the most enthusiastic adopters of 5G, is spearheading the transformation with rapid adoption and a nationwide rollout.
As demand surges, 5G is poised to redefine both society and the economy. So, which companies are leading this revolution? Let’s take a closer look at five 5G-related stocks in India that are worth watching.
#1 Bharti Airtel
Bharti Airtel has been at the forefront of launching and expanding 5G services across India. Since rolling out its 5G network in eight cities in October 2022, the company has achieved nationwide coverage, spanning all 28 states and 8 union territories.
In July 2024, Airtel began re-farming its mid-band spectrum to handle growing 5G traffic. By optimizing spectrum in the 1800, 2100, and 2300 MHz bands, Airtel is improving browsing speeds and enhancing indoor coverage. With a diversified spectrum portfolio across bands like 900 MHz, 1800 MHz, 2100 MHz, 3300 MHz, and 26 GHz, Airtel has built a strong foundation for comprehensive 5G services.
Airtel’s 5G user base grew to 90 million by Q1FY25, up from 72 million at the end of FY24. The company is set to launch standalone mode (SA) 5G Fixed Wireless Access (FWA) services by December 2024, while continuing with non-standalone mode (NSA) for consumer services in the short term.
Beyond connectivity, Airtel is deploying 5G-powered solutions for smart traffic management, public safety, and environmental monitoring in collaboration with cities. A partnership with Nokia, cemented through a multi-billion-dollar deal in November 2024, supports these efforts by deploying advanced 4G and 5G equipment across India. This collaboration also includes the ‘Green 5G Initiative,’ which focuses on energy efficiency and reducing carbon emissions.
Airtel’s infrastructure spans over 365,000 RKMs of submarine cables and satellite networks across 50 countries and 5 continents, serving over 2 billion people globally.
Financially, Airtel has shown consistent growth, with revenue increasing at a compound annual growth rate (CAGR) of 13.2% over the past five years and net profit surging by 38.4%. Looking forward, revenue and Ebitda are projected to grow at an annual rate of 13–16% between FY24 and FY27.
Key growth drivers include expected tariff hikes, which are likely to boost average revenue per user (ARPU), the rapid rollout and increasing adoption of 5G services, and diversification into non-mobile business segments. Airtel’s strong performance in its Africa operations further enhances its growth trajectory.
With its aggressive expansion of 5G services and focus on innovation, Bharti Airtel is well-positioned to capitalize on India’s growing digital economy. As the company continues to scale its 5G infrastructure and diversify its offerings, it remains a compelling player in the 5G revolution, offering significant opportunities for long-term growth.
#2 Tejas Networks
Tejas Networks, a Tata Group company, is a key player in India’s 5G ecosystem, specializing in flexible, scalable, and open Radio Access Network (RAN) solutions that enable seamless transitions from 4G to 5G for service providers.
The company’s 5G portfolio includes Baseband Units (BBUs) that support up to 15 cells with massive MIMO capabilities, in-house designed Radio Units (RUs) compliant with 3GPP and O-RAN standards, and a 5G Core built on a virtualized, service-based architecture. These systems enable advanced features like network slicing, supporting enhanced broadband and low-latency communications.
Tejas also offers Distributed Units (DUs) and Centralized Units (CUs) for flexible deployments, making it a one-stop solution provider for modern telecom needs.
To further solidify its 5G capabilities, Tejas Networks acquired cutting-edge RAN technology from IIT Madras, IIT Kanpur, and SAMEER for ₹120 million. This strategic move strengthens its technological foundation and enhances commercial applications in the fast-evolving telecom landscape.
Tejas Networks has achieved a strong 5-year compound annual growth rate (CAGR) of 22.4% in sales and transitioned to profitability during the same period. With India’s emphasis on localizing supply chains and positioning itself as a global tech hub, Tejas is well-equipped to meet the rising demand for cost-effective, high-quality telecom products.
The company is also expanding its global footprint, focusing on providing affordable 5G solutions to developing markets. It anticipates 20% revenue growth over the next two years, underpinned by India’s increasing adoption of 5G technology.
Tejas Networks recently secured the largest order in its history from BSNL, signalling a major performance turnaround. With its comprehensive portfolio and strategic initiatives, the company is poised to play a pivotal role in India’s 5G revolution and beyond.
#3 HFCL Ltd
HFCL Ltd, a prominent technology solutions company, is playing a pivotal role in India’s 5G revolution with its cutting-edge products and services.
HFCL has launched India’s first indigenous 5G Fixed Wireless Access (FWA) Customer Premise Equipment (CPE) solution and offers advanced 5G Lab-as-a-Service facilities, enabling enterprises to test and optimize their systems.
The company’s portfolio includes 5G outdoor small cell products developed in partnership with Qualcomm Technologies, addressing sub-6GHz and mmWave requirements. It also provides a comprehensive range of optical fiber and cables tailored to 5G standards.
HFCL’s Unlicensed Band Radio (UBR) products, such as its 1 Gbps Small Form Factor 4G/5G backhaul radio and 2 Gbps Point-to-Multipoint connectivity UBR, cater to diverse connectivity needs, including rural areas.
A significant milestone for HFCL was securing a ₹6.2 billion order from a domestic telecom service provider for indigenously manufactured 5G networking equipment. This large-scale order, to be executed by December 2024, underscores HFCL’s commitment to advancing high-tech telecom equipment manufacturing in India.
HFCL has also partnered with Qualcomm to develop 5G millimeter-wave products and supplied fiber optic cables for Reliance Jio’s 5G rollout. Additionally, the company plays a critical role in the BharatNet project, which aims to improve broadband connectivity in rural India.
While HFCL’s revenue has yet to fully recover over the past five years, the company’s net profit has grown at a steady CAGR of 7.8%, demonstrating resilience in a challenging industry landscape. HFCL has invested ₹7 billion in a new facility dedicated to 5G equipment manufacturing and plans to double its revenue from 5G products within three years by expanding internationally and diversifying its solutions portfolio.
The company has set ambitious targets for 2027, aiming for revenue in the ₹90–100 billion range. Its strategic roadmap focuses on boosting operational efficiency and expanding its market reach, positioning HFCL as a key player in India’s 5G ecosystem and global telecom markets.
With its innovative solutions, strategic partnerships, and commitment to indigenous manufacturing, HFCL is well-equipped to contribute significantly to the nation’s 5G ambitions.
#4 Tech Mahindra
Tech Mahindra is at the forefront of network transformation, leveraging 5G, hyper-automation, AI/ML, and cloud migration to reshape telecom operations and drive innovation.
The company provides digital solutions to modernize operations and business support systems (OSS/BSS), enabling telecom operators to streamline their processes and enhance efficiency. Collaborations with Casa Systems and Enea have resulted in a comprehensive 5G core solution deployable on AWS or on-premises infrastructure, highlighting Tech Mahindra’s strategic focus on partnerships to drive future network operations.
AI integration is a cornerstone of Tech Mahindra’s telecom solutions, supporting real-time data analysis with machine learning (ML) algorithms to identify network bottlenecks and optimize resources. Predictive maintenance powered by AI minimizes downtime and enhances customer experience by preventing network failures.
The convergence of AI and edge computing is another key focus, enabling real-time data processing at the network edge to reduce latency and unlock advanced 5G and IoT applications.
In 2024, Tech Mahindra signed a Memorandum of Understanding (MoU) with Taiwanese firm Pegatron to develop private 5G solutions for enterprises. This collaboration combines Pegatron’s 5G connectivity layer and private 5G products with Tech Mahindra’s expertise in end-to-end 5G services, positioning both firms to capitalize on global opportunities.
Between FY20 and FY24, Tech Mahindra reported a revenue CAGR of 8.4%. However, its net profit declined by 11% during the same period, reflecting challenges in maintaining margins amidst evolving market dynamics.
Despite this, the company’s pre-packaged digital solutions and commitment to network transformation cement its position as a key player in the rapidly evolving telecommunications landscape.
With its focus on innovation, strategic partnerships, and transformative technologies, Tech Mahindra remains well-placed to drive value in the 5G ecosystem and beyond.
#5 Indus Towers
Indus Towers, a leading player in India’s telecommunications infrastructure, is playing a crucial role in the country’s 5G revolution.
Specializing in passive telecom infrastructure, Indus Towers oversees the deployment, ownership, and maintenance of telecom towers and communication structures. The company is actively upgrading its network to meet the high-spectrum and fast data speed demands of 5G while implementing energy-efficient solutions, including solar power and battery storage, to enhance sustainability.
To bolster 5G connectivity, Indus Towers has introduced In-Building Solutions (IBS), designed for high-density indoor locations such as malls, hospitals, and government buildings. Its collaboration with major telecom operators, including Bharti Airtel and Reliance Jio, has been instrumental in facilitating the nationwide rollout of 5G services.
The company has invested ₹5 billion in infrastructure upgrades and is expanding its network with 5,000 new towers specifically designed for 5G antennas.
Indus Towers has delivered impressive financial performance, with sales growing at a compound annual growth rate (CAGR) of 33.2% over the past five years and net profit increasing at a CAGR of 19.3%.
Looking ahead, the company plans to add 10,000 new towers over the next three years to meet growing demand and anticipates a 12% revenue growth next year as 5G adoption continues to accelerate across India.
With its robust infrastructure, strategic partnerships, and commitment to innovation, Indus Towers is well-positioned to remain a key enabler of India’s digital transformation.
Conclusion
Over the next 2–3 years, India is set to become the world’s second-largest smartphone market, with nearly 1 billion active devices. By then, approximately 920 million mobile users are expected, with 88 million adopting 5G technology.
India’s ambitions extend beyond adoption, with plans to manufacture mobile phones worth $126 billion by FY26. Moreover, 5G technology is projected to contribute a staggering $450 billion to the economy between 2023 and 2040.
The growing demand for high-speed transmission, low network latency, and an expanding number of connected devices are key drivers of this growth. Additionally, the rise of cloud-based applications has amplified the need for advanced network technologies, further accelerating the market’s expansion. These trends are poised to solidify the positions of companies in the 5G space.
That said, before making investment decisions, it remains critical to evaluate a company’s financial performance and corporate governance to ensure a sound and informed approach.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
