Bharti Airtel shares: Brokerages maintain 'Buy' on strong ARPU, FCF; revise target prices by up to Rs 2,285
The company's Q1 FY26 revenue stood at Rs 49,970 crore, up 3.3 per cent quarter-on-quarter (QoQ), supported by an industry-leading average revenue per user (ARPU) of Rs 250, which rose 2.1 per cent QoQ.
- Aug 7, 2025,
- Updated Aug 7, 2025 11:58 AM IST
Bharti Airtel Ltd reported a steady set of numbers for the April–June 2025 quarter of FY26, prompting brokerages to reaffirm their bullish outlook on the telecom major. The company's Q1 FY26 revenue stood at Rs 49,970 crore, up 3.3 per cent quarter-on-quarter (QoQ), supported by an industry-leading average revenue per user (ARPU) of Rs 250, which rose 2.1 per cent QoQ. The company also added 12 lakh subscribers during the quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) margin remained stable QoQ at 56.7 per cent. Capex for the quarter decreased sharply to Rs 8,300 crore from Rs 14,400 crore in Q4 FY25, resulting in a significant jump in free cash flow (FCF) to Rs 19,900 crore versus Rs 13,000 crore in the previous quarter.
Brokerages highlighted Bharti's consistent performance, robust balance sheet and improving fundamentals as key positives.
Nuvama Institutional Equities noted that Bharti's strong ARPU, continued subscriber additions and healthy FCF generation support enhanced shareholder returns and a stronger balance sheet. It views Bharti as the best way to play the Indian telecom sector and has revised its FY26E/FY27E EPS estimates by -7 per cent and +4 per cent, respectively. The brokerage retains a 'BUY' rating with a revised target price (TP) of Rs 2,200 (from Rs 2,130).
Motilal Oswal Financial Services Ltd (MOFSL) also reiterated its 'BUY' rating and raised its TP to Rs 2,285. The India wireless and homes businesses are valued on a DCF basis, implying ~13.4x Sep'27E EV/EBITDA. The DTH and Enterprise segments are valued at 5x and 10x Sep'27E EBITDA, respectively.
JM Financial highlighted the management's positive outlook for the enterprise business, which has exited low-margin segments. The brokerage sees the industry's wireless ARPU growing at a 12–13 per cent CAGR over the next 3–5 years, driven by the consolidated market structure and rising ARPU requirements for peers like Reliance Jio. JMFL maintains a 'BUY' rating on Airtel too with a revised TP of Rs 2,240.
Meanwhile, Airtel shares were last seen trading 0.63 per cent lower at Rs 1,917.55 in Thursday's trade.
Bharti Airtel Ltd reported a steady set of numbers for the April–June 2025 quarter of FY26, prompting brokerages to reaffirm their bullish outlook on the telecom major. The company's Q1 FY26 revenue stood at Rs 49,970 crore, up 3.3 per cent quarter-on-quarter (QoQ), supported by an industry-leading average revenue per user (ARPU) of Rs 250, which rose 2.1 per cent QoQ. The company also added 12 lakh subscribers during the quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) margin remained stable QoQ at 56.7 per cent. Capex for the quarter decreased sharply to Rs 8,300 crore from Rs 14,400 crore in Q4 FY25, resulting in a significant jump in free cash flow (FCF) to Rs 19,900 crore versus Rs 13,000 crore in the previous quarter.
Brokerages highlighted Bharti's consistent performance, robust balance sheet and improving fundamentals as key positives.
Nuvama Institutional Equities noted that Bharti's strong ARPU, continued subscriber additions and healthy FCF generation support enhanced shareholder returns and a stronger balance sheet. It views Bharti as the best way to play the Indian telecom sector and has revised its FY26E/FY27E EPS estimates by -7 per cent and +4 per cent, respectively. The brokerage retains a 'BUY' rating with a revised target price (TP) of Rs 2,200 (from Rs 2,130).
Motilal Oswal Financial Services Ltd (MOFSL) also reiterated its 'BUY' rating and raised its TP to Rs 2,285. The India wireless and homes businesses are valued on a DCF basis, implying ~13.4x Sep'27E EV/EBITDA. The DTH and Enterprise segments are valued at 5x and 10x Sep'27E EBITDA, respectively.
JM Financial highlighted the management's positive outlook for the enterprise business, which has exited low-margin segments. The brokerage sees the industry's wireless ARPU growing at a 12–13 per cent CAGR over the next 3–5 years, driven by the consolidated market structure and rising ARPU requirements for peers like Reliance Jio. JMFL maintains a 'BUY' rating on Airtel too with a revised TP of Rs 2,240.
Meanwhile, Airtel shares were last seen trading 0.63 per cent lower at Rs 1,917.55 in Thursday's trade.