Airtel Africa Q2 Review — Strong Double-Digit Growth Across Verticals; Value Add For Bharti Says Motilal Oswal

Airtel Africa’s continued strong performance has led to more than a 2.3x jump in its share price in CY25, and yet it trades at ~5.3x Sep’27E EV/Ebitda, with further room for value unlocking with the impending Mobile Money IPO in H1 CY26..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Airtel Africa constant currency revenue at $1.5 billion continued to grow in healthy double digits (+24% YoY, vs 25% YoY in 1Q), driven by sustained double-digit revenue growth across data (+36% YoY), Mobile Money (+30% YoY), and voice (+13% YoY). Airtel Africa’s reported revenue came in at $1.57 billion (+11% QoQ), ~4% ahead of our estimate, driven by favorable forex movement and better performance in East Africa (6% beat) and Francophone Africa (3% beat).  Airtel Africa’s CC Ebitda at $733 million also continued its double-digit growth (+31% YoY vs. 33% YoY in 1Q). Reported Ebitda at $760 million (+13% QoQ, +36% YoY) came in ~7% ahead of our estimate.Reported Ebitda margin expanded ~90bp QoQ to 48.5% (+240bp YoY) and was 110bp above our estimate, driven by margin expansions in Nigeria and East Africa..Despite ~17% YoY rise in capex to $197 million, 2QFY26 CC operating FCF rose 37% YoY to $536 million (H1 FY26 operating FCF up ~45% YoY to $1.09 billion). Net debt was stable QoQ at $5.5 billion. Excluding leases, net debt declined to $1.63 billion (vs $1.72 billion QoQ). Reported leverage stood at 2.1x (vs 2.2x QoQ). Excluding leases, net debt to Ebitdal stood at ~0.8x (vs 0.9x QoQ). .Airtel Africa declared a dividend of 2.84 cents/share, a 9.2% increase in line with the company’s progressive dividend policy. The company has raised its capex guidance to $875-900 million (from ~$750 million earlier), noting the immense growth opportunities in its markets. Airtel Africa’s continued strong performance has led to more than a 2.3x jump in its share price in CY25, and yet it trades at ~5.3x Sep’27E EV/Ebitda, with further room for value unlocking with the impending Mobile Money IPO in H1 CY26. Given a long runway, we expect Airtel Africa to sustain its double-digit growth, which should lead to further re-rating, which would be beneficial for Bharti Airtel’s shareholders (~Rs 84/share contribution from Airtel Africa in our Bharti’s SoTP-based target price of Rs 2,285)..Click on the attachment to read the full report:.Indian Oil, TVS Motor, SRF, Mahindra Finance, TTK Prestige, CreditAccess, Go Digit Q2 Review— HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Airtel Africa Q2 Review — Strong Double-Digit Growth Across Verticals; Value Add For Bharti Says Motilal Oswal

Given a long runway, Motilal Oswal expects Airtel Africa to sustain its double-digit growth, which should lead to further re-rating, which would be beneficial for Bharti Airtel’s shareholders.

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