Key Facts:
Bharti Airtel Limited is an Indian multinational telecommunications company based in New Delhi.
It is the second largest mobile network operator in India and the second largest mobile network operator in the world.
Prime Highlights:
The company reported a 19% year-on-year increase in revenue, reaching Rs 45,129 crore, surpassing analysts’ expectations of Rs 43,874 crore.
Bharti Airtel’s average revenue per user (ARPU) rose to Rs 245, up from Rs 208 in the same quarter last year, reflecting growth in its subscriber base.
Key Background:
Shares of Bharti Airtel surged by 5% following the telecom giant’s robust performance in the third quarter of FY2024-25. The company’s net profit soared by an impressive 505%, reaching Rs 14,781 crore, largely driven by a one-time exceptional gain from consolidating a majority stake in Indus Towers. This gain, valued at Rs 7,546 crore, significantly exceeded analysts’ estimates, which had forecasted a net profit of Rs 5,039 crore.
The company’s revenue also showed strong growth, rising 19% year-on-year to Rs 45,129 crore, surpassing expectations of Rs 43,874 crore. A key metric for telecom companies, Bharti Airtel’s average revenue per user (ARPU), increased to Rs 245 in Q3, up from Rs 208 in the same period last year, reflecting solid growth in its subscriber base and services. Bharti Airtel shares were trading at Rs 1,697.40 on the NSE, nearing the day’s high of Rs 1,707.55. The stock’s rise was accompanied by heavy trading volumes, with over 8 million shares changing hands, surpassing the one-month daily average of 4.9 million.
Following the results, brokerage firms had a mixed but generally positive outlook. Morgan Stanley maintained an ‘equal-weight’ rating with a target price of Rs 1,650, highlighting the company’s strong free cash flow. HSBC reaffirmed its ‘buy’ call with a target of Rs 1,940, citing growth drivers such as increased ARPU, expanding broadband subscribers, and robust cash flow. Similarly, CLSA maintained its ‘outperform’ rating, setting a target price of Rs 1,860, noting the company’s solid free cash flow after capital expenditure and leases.
