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PL Capital Report
Bharti Airtel Ltd. delivered a strong quarterly performance, led by robust growth in both its India and Africa operations. According to a note by PL Capital, the company remains well‑positioned to drive further average revenue per user gains through premiumisation and an improved subscriber mix.
The brokerage reiterated its ‘Accumulate' rating and raised its target price to Rs 2,313 (earlier Rs 2,259), valuing the India business at 14x Dec'27E EV/Ebitda and adding the worth of Airtel Africa, Indus Towers, and Bharti Hexacom.
In the India business, mobile ARPU improved to Rs 259, compared with Rs 256 in the previous quarter. Subscriber additions rose sharply to 44 lakh, up from 14 lakh QoQ. This resulted in India mobile revenue rising 9.1% YoY and 1.9% QoQ to Rs 28,650 crore, while Ebitda increased 12.1% YoY and 2.2% QoQ to Rs 17,330 crore.
The home services segment continued its strong trajectory, with revenue growing 32.6% YoY and 7.3% QoQ to Rs 2,000 crore, and Ebitda rising 34.4% YoY and 7.5% QoQ to Rs 1,000 crore.
Meanwhile, the B2B segment saw revenue decline 5.2% YoY, though Ebitda grew 13.1% YoY, as the digital business continued to act as a drag.
Airtel Africa posted a robust quarter, with revenue rising 36.5% YoY and 3.5% QoQ to Rs 15,010 crore, and Ebitda surging 54.3% YoY and 10.7% QoQ to Rs 7,300 crore.
At the consolidated level, Ebitda climbed to Rs 30,780 crore, above PL Capital and Bloomberg consensus estimates, registering 25.2% YoY and 4.1% QoQ growth. Adjusted PAT stood at Rs 6,890 crore, up 1.4% QoQ, though slightly below the brokerage's estimate.
PL Capital said Airtel's focus on premium subscribers, tariff repair potential, and strong Africa momentum provides visibility on sustained earnings growth, supporting the revised target price.
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