5 Stocks to Benefit as India’s Data Usage Is Set to Nearly Double Over the Next 5 Years

Synopsis: India’s rising data consumption is reshaping digital infrastructure demand, benefiting telecom, fiber, and cloud players as 5G expansion, broadband growth, and enterprise connectivity drive long-term sectoral opportunities. 

India’s data consumption is growing rapidly, aligning with the trend that it is set to nearly double over the next five years. Average monthly data usage per user has already crossed ~20–25 GB from less than 2 GB a few years ago, and overall data traffic continues to expand at a CAGR of ~25–30 percent . 

This sharp rise is being driven by higher smartphone penetration, video streaming, cloud usage, and the ongoing 5G rollout. As consumption scales up across both urban and rural regions, demand for telecom towers, fiber networks, and enterprise connectivity is expected to rise in tandem, The below mentioned companies are set to benefit  directly from the projected ~100 percent  surge in data usage. 

Indus Towers Ltd:

Indus Towers is one of India’s largest telecom infrastructure companies that owns and operates mobile towers across the country. It provides shared tower space and related services to major telecom operators like Airtel, Jio, and Vodafone Idea. The company benefits directly from rising mobile data usage and 5G expansion, as higher network demand increases tower installations, tenancy, and revenue per site across urban and rural regions.

With the market capitalization of Rs. 1,06,661 Crores, the shares of Indus Tower Ltd  closed at around Rs. 404 per share which is 16 percent discount from its 52-week high of Rs. 482 per share and is trading at a P/E of 14.8 whereas industry P/E stands at 16.6

Revenue from operations has increased on a yearly basis from Rs. 7727 Crores to Rs. 8101 Crores, up 4.8 percent. Operating profit has increased from Rs. 4395 Crores to Rs. 4424 Crores, up 0.65 percent and net profit has increased from Rs. 1179 Crores to Rs. 1793 Crores, up 52 percent 

Bharti Airtel:

Bharti Airtel is one of India’s largest telecom companies providing mobile, broadband, and digital services across India and several global markets. It operates 4G and 5G networks and also offers enterprise solutions like cloud, data centers, and cybersecurity. The company benefits from rising data consumption, increasing smartphone usage, and 5G expansion. Its strong customer base and premium services position it well for long-term growth in the digital connectivity space. 

With the market capitalization of Rs. 11,17,903 Crores, the shares of Bharti Airtel Ltd closed at around Rs. 1,834 Crores, which is 15.6 percent discount from its 52 weeks high of Rs. 2,175 Crores and is trading at a P/E of 36 whereas industry P/E stands at 41

Revenue from Operations has increased from Rs. 45,129 Crores to Rs. 53,982 Crores, up 19.6 percent. Operating profit has increased from Rs. 24,597 Crores to Rs. 30,783 Crores up 25 percent and net profit has decreased from Rs. 16,135 Crores to Rs. 8,503 Crores, down 47 percent  

HFCL:

HFCL is an Indian telecommunications equipment company engaged in designing and manufacturing optical fiber cables, telecom gear, and networking solutions. It plays a key role in building India’s digital infrastructure by supplying products for broadband, 4G/5G networks, and defence communications. The company also offers end-to-end network solutions and benefits from rising demand for fiber connectivity, driven by expanding internet usage, 5G rollout, and government-led digital infrastructure projects. 

With the market capitalization of Rs. 21,551 Crores, the shares of HFCL Ltd closed at around Rs. 141 per share, which is 4.47 percent discount from its 52-week high of Rs. 148 per share and is trading at a P/E of 63.1, whereas the industry P/E stands at 16.6

Revenue from operations has increased on a yearly basis from Rs. 801 Crores to Rs. 1824 Crores, up 127 percent. Operating loss has turned into operating profit of Rs. 314 Crores from  operating loss of Rs. 37 Crores and net loss has turned into net profit of Rs. 184 Crores from net loss of Rs. 83 Crores. 

Sterlite Technologies ltd: 

Sterlite Technologies is an Indian telecom and digital infrastructure company that designs and manufactures optical fibre, fibre cables, and networking solutions. It plays a key role in building high-speed internet networks used for broadband, 4G/5G, and data transmission. The company also provides network design and digital connectivity services globally. It benefits from rising demand for fibre infrastructure, driven by increasing internet usage, cloud adoption, and telecom network expansion across India and international markets. 

With the market capitalization of Rs. 18,366 Crores, the shares of Sterlite Technologies ltd closed at its 52-week high of Rs. 376  per share and are trading at a P/E of 386 whereas industry P/E stands at 55.3

Revenue from operations has increased on a yearly basis from Rs. 1052 Crores to Rs. 1441 Crores, up 36.9 percent. Operating profit has increased from Rs. 125 Crores to Rs. 195 Crores, up 56 percent and net loss has turned into a net profit of Rs. 59 Crores from net loss of Rs. 40 Crores. 

Tejas Networks ltd: 

Tejas Networks is an Indian telecom and networking equipment company that designs and manufactures products used in broadband, optical fiber, and 4G/5G networks. It supplies telecom operators, internet providers, and government projects in India and global markets. The company plays an important role in building digital infrastructure through network equipment like routers, optical systems, and wireless solutions, benefiting from rising data usage and ongoing telecom network expansion. 

With the market capitalization of Rs. 9,147 Crores, the shares of Tejas Network Ltd closed at around Rs. 514 per share which is 32.5 percent discount from its 52-week high of Rs. 762 per share and is trading at a D/E of 1.43

Revenue from operations has decreased on a yearly basis from Rs. 1907 Crores to Rs. 333 Crores, down 83 percent. Operating profit of Rs. 122 Crores turned into an operating loss of Rs. 118 Crores and net loss has widened from Rs. 72 Crores to Rs. 211 Crores. 

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