Telmisartan selectively blocks the angiotensin II type 1 (AT1) receptors, preventing angiotensin II-mediated vasoconstriction and aldosterone secretion. This leads to vasodilation, reduced sodium and water retention, and decreased blood pressure. Additionally, telmisartan acts as a partial agonist of peroxisome proliferator-activated receptor gamma (PPAR-γ), which contributes to improved insulin sensitivity and beneficial metabolic effects.