Bharti Airtel shares: Citi remains bullish after strong Q2 despite elevated churn; Rs 299 plan restored
The brokerage said the telecom major delivered better-than-expected revenue and EBITDA growth in its India mobile business, despite elevated subscriber churn following the withdrawal of its entry-level prepaid plan.
- Nov 6, 2026,
- Updated Nov 6, 2026 5:26 PM IST
Citi Research assigned a 'Buy' rating on Bharti Airtel, with a target price of Rs 2,230, following a strong performance in the September quarter (Q2 FY27). The brokerage said the telecom major delivered better-than-expected revenue and EBITDA growth in its India mobile business, despite elevated subscriber churn following the withdrawal of its entry-level prepaid plan.
Citi said India mobile revenue and EBITDA grew 3.4 per cent and 3.8 per cent quarter-on-quarter (QoQ), respectively, with both metrics coming in 1 per cent ahead of its estimates. Stronger-than-expected average revenue per user (ARPU) accretion offset the impact of lower net subscriber additions, which were affected by the company's premiumisation initiative during the quarter.
The brokerage noted that Airtel's net subscriber additions declined to 0.7 million in Q2 from 3.3 million in the preceding quarter. Churn increased to 2.9 per cent from 2.6 per cent, likely reflecting the rationalisation of prepaid plans in August 2026, which involved discontinuing the Rs 299 entry-level smartphone plan.
Airtel's total subscriber base stood at 377 million.
Meanwhile, the company has restored its entry-level Rs 299 plan, albeit with a reduced daily data allowance of 1 GB, compared with the 1.5 GB available to many users previously. The plan is now listed on the company's website.
Q2 performance
Citi highlighted a strong performance in Airtel's enterprise segment. Airtel Business revenue and EBITDA grew 11 per cent and 15 per cent year-on-year (YoY), respectively.
Overall India revenue and EBITDA, excluding Indus Towers, increased 11 per cent and 12 per cent YoY, respectively. Consolidated EBITDA stood at Rs 35,200 crore, up 5 per cent sequentially and 1.5 per cent ahead of the brokerage's estimates.
Citi said capex and free cash flow generation remained steady, although net debt increased 6 per cent QoQ, largely on account of the dividend payout during the quarter.
The brokerage has retained its target price of Rs 2,230 for Bharti Airtel, based on a sum-of-the-parts (SOTP) valuation using September 2027 estimates.
That said, Citi flagged several downside risks, including an adverse impact on India mobile revenues from heightened competitive intensity, delays in tariff hikes, higher-than-expected capex on 5G rollout, data centres or future spectrum auctions, lacklustre performance in Africa, and stake sales by promoters.
Separately, the brokerage suggested a target price of Rs 470 for Indus Towers, based on 8 times the estimated March 2028 EV/EBITDA.
On Friday, Airtel shares rose 1.66 per cent close at Rs 2,096.25.
Citi Research assigned a 'Buy' rating on Bharti Airtel, with a target price of Rs 2,230, following a strong performance in the September quarter (Q2 FY27). The brokerage said the telecom major delivered better-than-expected revenue and EBITDA growth in its India mobile business, despite elevated subscriber churn following the withdrawal of its entry-level prepaid plan.
Citi said India mobile revenue and EBITDA grew 3.4 per cent and 3.8 per cent quarter-on-quarter (QoQ), respectively, with both metrics coming in 1 per cent ahead of its estimates. Stronger-than-expected average revenue per user (ARPU) accretion offset the impact of lower net subscriber additions, which were affected by the company's premiumisation initiative during the quarter.
The brokerage noted that Airtel's net subscriber additions declined to 0.7 million in Q2 from 3.3 million in the preceding quarter. Churn increased to 2.9 per cent from 2.6 per cent, likely reflecting the rationalisation of prepaid plans in August 2026, which involved discontinuing the Rs 299 entry-level smartphone plan.
Airtel's total subscriber base stood at 377 million.
Meanwhile, the company has restored its entry-level Rs 299 plan, albeit with a reduced daily data allowance of 1 GB, compared with the 1.5 GB available to many users previously. The plan is now listed on the company's website.
Q2 performance
Citi highlighted a strong performance in Airtel's enterprise segment. Airtel Business revenue and EBITDA grew 11 per cent and 15 per cent year-on-year (YoY), respectively.
Overall India revenue and EBITDA, excluding Indus Towers, increased 11 per cent and 12 per cent YoY, respectively. Consolidated EBITDA stood at Rs 35,200 crore, up 5 per cent sequentially and 1.5 per cent ahead of the brokerage's estimates.
Citi said capex and free cash flow generation remained steady, although net debt increased 6 per cent QoQ, largely on account of the dividend payout during the quarter.
The brokerage has retained its target price of Rs 2,230 for Bharti Airtel, based on a sum-of-the-parts (SOTP) valuation using September 2027 estimates.
That said, Citi flagged several downside risks, including an adverse impact on India mobile revenues from heightened competitive intensity, delays in tariff hikes, higher-than-expected capex on 5G rollout, data centres or future spectrum auctions, lacklustre performance in Africa, and stake sales by promoters.
Separately, the brokerage suggested a target price of Rs 470 for Indus Towers, based on 8 times the estimated March 2028 EV/EBITDA.
On Friday, Airtel shares rose 1.66 per cent close at Rs 2,096.25.