Embodiments herein provide a method of estimating channel states of a plurality of user equipments (UEs) in a single instance. The method includes receiving pilot samples from the plurality of UEs. The method includes selecting a predetermined number of tones, wherein the channel associated with each UE across the selected pre-determined number of tones is same. The method includes collecting the received pilot samples from each pilot symbol and stacking the received pilot samples as a vector. Further, the method includes constructing a matrix. The matrix includes known pilot values used by each UE. Furthermore, the method includes estimating channel states of the plurality of UEs by applying a filter on the vector formed from the received pilot samples. The number of channel states to be estimated is reduced by selecting the pre-determined number of tones.