Why Bharti Airtel Remains the Strongest Telecom Play After Q2 FY26 Results?
Quarterly Highlights (Q2 FY26)
- Revenue: ₹52,870 Cr, up 5.8% QoQ — driven by ARPU growth and subscriber additions.
- ARPU: ₹256, rising 2.2% QoQ, reflecting improved pricing discipline and premium plan traction.
- Subscriber Growth: +1.4 million net additions, supporting top-line momentum.
- EBITDA Margin: 57.3%, up 56 bps QoQ — aided by operational efficiency and scale benefits.
- Capex: ₹11,400 Cr (vs ₹8,300 Cr in Q1 FY26), focused on 5G rollout and network modernization.
- Free Cash Flow (FCF): ₹18,600 Cr (vs ₹19,900 Cr in Q4 FY25), maintaining strong cash generation despite higher investments.
Bharti Airtel’s performance reaffirms its leadership position in India’s telecom industry with consistent ARPU expansion and margin stability. The balance between aggressive capex and strong cash flows ensures continued network superiority and shareholder value creation.
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Brokerage View: Nuvama on Bharti Airtel
- Target Price: ₹2,500 (revised from ₹2,200).
- Rating: Buy
- Rationale: Nuvama highlights Airtel’s superior ARPU growth, high-quality subscriber base, and stable margins as core strengths.
- Raises FY26E/27E EBITDA estimates by 2.5% and 3.6%, respectively, factoring in improved efficiency and continued digital expansion.
- Valuations rolled forward to Sep-27E, reinforcing Airtel’s standing as the top telecom pick in India.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, observes that Bharti Airtel’s disciplined pricing strategy, healthy cash flows, and sustained margin profile make it a steady compounder in India’s digital growth cycle. Long-term investors may continue to view Airtel as a preferred core holding. Explore more insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Bharti Airtel
- What Drove Bharti Airtel’s Strong ARPU Growth in Q2 FY26?
- How Does Airtel Maintain High Margins Despite Heavy Capex?
- Why Is Airtel Rated as the Top Pick Among Telecom Stocks?
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.
