Can Bharti Airtel Maintain Its Growth Momentum After Jefferies’ Bullish Upgrade?
About Bharti Airtel
Bharti Airtel Ltd continues to consolidate its leadership in India’s telecom sector with strong growth across mobile, home broadband, and enterprise segments. Jefferies’ latest report highlights Airtel’s margin expansion, consistent revenue momentum, and improving subscriber mix driven by premiumization and steady ARPU (Average Revenue Per User) growth.
Jefferies termed the report “Bharti’s Network of Wins”, reflecting the company’s ability to grow profitably while sustaining investments in 5G rollout and fiber expansion. It emphasized Airtel’s strategic balance between growth, capital efficiency, and financial discipline as key differentiators against competition.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY |
|---|---|---|
| Revenue | ₹38,400 Cr | +9% |
| EBITDA | ₹19,200 Cr | +11% |
| EBITDA Margin | 50% | +90 bps |
| PAT | ₹3,130 Cr | +17% |
Revenue ₹38,400 Cr rose 9% YoY, led by growth in India mobile and enterprise segments. EBITDA ₹19,200 Cr expanded 11% due to tariff mix improvement and operating efficiency. Margins at 50% marked an industry-leading performance, and PAT ₹3,130 Cr climbed 17%, reflecting consistent cash flow growth across business units.
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Peer Comparison
| Company | Revenue Growth | EBITDA Margin |
|---|---|---|
| Bharti Airtel | +9% | 50% |
| Reliance Jio | +11% | 49% |
| Vodafone Idea | +2% | 34% |
SWOT Analysis
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Valuation & Investment View
- Short-term: Supported by margin expansion and tariff stability.
- Medium-term: Increased data consumption and 5G monetization to drive growth.
- Long-term: Strong FCF generation and digital diversification sustain value creation.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, notes that Bharti Airtel’s balance sheet strength, growing ARPU, and operational efficiency reinforce its long-term investment case. Explore more insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Bharti Airtel
- What are the key drivers behind Bharti Airtel’s margin improvement in Q2FY26?
- How will 5G rollout and digital services enhance Airtel’s profitability?
- Can Bharti Airtel sustain free cash flow growth in FY26–FY27?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
