Bharti Airtel Q4 Review: Dolat Capital Maintains 'Add', Hikes Target Price Post Inline Results

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Dolat Capital Report

Bharti Airtel Ltd.’s Q4 FY25 results were in-line and healthy. L2L India revenue (excluding Indus) grew by 16%/flat YoY/QoQ and Ebitda by 25/3% aided by tariff hikes. Note: Reported performance is not comparable due to consolidation of Indus.

The company’s solid growth trajectory driven by superior execution, positions it as a healthy compounding story with multiple triggers including-

1. tariff hike-led ARPU growth (~16/19% CAGR over FY25- 27) in India Wireless; assume another hike in Q3/Q4 FY26,

2. 5G pickup,

3. accelerated growth in Home BB & Enterprise,

4. benefits from deleveraging,

5. weakening of Vodafone Idea and

6. potential listing of Jio.

We marginally increase our FY26/27E Ebitda by 2% each and remain constructive about Bharti’s growth potential. However, following a sharp stock price rise (6/7/15/48% in the last 1/3/6/12m), the up-move will likely be gradual and as we approach Oct-Nov’25 (historic tariff increase months).

Reiterate ‘Accumulate’ rating with target price of Rs 2,030 at 13 times FY27E EV/E for India Wireless (vs Rs 1,830 @ 12.5x FY27E).

Increase in target price is driven by modest estimate, multiple expansions and lower net debt. Stake sale by Promoters (or Singtel) is a risk.

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