Bharti Airtel shares climbed 2% in Friday morning trade on the National Stock Exchange as market participants digested a second-quarter operational beat anchored by expanding tariff realisations. The stock traded up after closing Thursday at ₹2,056.90. Net profit after exceptional items advanced 8.8% sequentially to ₹8,887.5 crore, absorbing a ₹180-crore charge linked to Airtel Money IPO costs. Consolidated revenue grew 4% quarter-on-quarter to ₹60,877.5 crore—outpacing consensus forecasts of 2.5%.
The performance was driven by deliberate tariff engineering. Average revenue per user—the sector's core profitability yardstick—climbed 2.7% sequentially to ₹271, up from ₹264 in the preceding quarter. The operator widened its pricing lead over its primary competitor to 24%. Yet that premium came at an operational cost. Net subscriber additions slumped to 7.16 lakh from 32.65 lakh in the prior three-month stretch, while monthly customer churn ticked up 30 basis points to 2.9% following the withdrawal of the ₹299 entry-tier tariff.
Consolidated EBITDA margin expanded 50 basis points to 57.4%, generating an operational profit pool of ₹34,900 crore. In the standalone India mobile franchise, operating leverage took hold. India mobile revenue advanced 3.4% sequentially to ₹30,943.1 crore, while mobile EBITDA rose 3.8% to ₹18,873.5 crore, locking in a 61% operating margin. Earnings before interest and tax inside the wireless unit gained 7.4% to touch ₹10,675.6 crore.
| Financial Metric | Q2 Level | Q1 Level | QoQ Change |
|---|---|---|---|
| Consolidated Revenue | ₹60,877.5 cr | ₹58,539.1 cr | +4.0% |
| Net Profit (Post-Exceptional) | ₹8,887.5 cr | ₹8,167.4 cr | +8.8% |
| India Mobile EBITDA Margin | 61.0% | 60.8% | +20 bps |
| Average Revenue Per User (ARPU) | ₹271 | ₹264 | +2.7% |
| Net Subscriber Additions | 7.16 lakh | 32.65 lakh |
Beyond the consumer handset division, Airtel Business delivered double-digit gains. Enterprise revenue surged 11% year-on-year, pushing segment EBITDA up 15%. Across the non-tower domestic portfolio, revenue and EBITDA climbed 11% and 12% over year-ago levels. Consolidated free cash flow reached ₹19,000 crore—roughly $2 billion—after fully deducting capital expenditure commitments and statutory lease liabilities. Balance-sheet leverage held steady at 1.2 times net debt-to-EBITDA, though net debt rose 6% sequentially following scheduled dividend distributions.
Institutional desks moved swiftly to recalibrate valuation models. Brokerage CLSA maintained an 'Outperform' stance and raised its 12-month price target to ₹2,765 per share—marking the street's highest call and implying a 34% upside from Thursday's close. Citi retained a 'Buy' rating with a ₹2,230 target, arguing that accelerating ARPU more than offsets near-term subscriber leakage caused by aggressive customer upselling. Of 33 institutional desks tracking the counter, 31 maintain outright 'Buy' recommendations, leaving the stock positioned for institutional inflows despite a 3% decline across calendar 2026.
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