Bharti Airtel shares jump 4% after Q1 results. Here’s what Jefferies, CLSA, others are saying
Its revenue from operations rose more than 18% YoY to Rs 58,539 crore, compared with Rs 49,463 crore a year ago. The company will hold its analyst call at 12 PM today
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Operating performance also remained strong, with EBITDA rising more than 19% year-on-year to Rs 33,598.89 crore. The EBITDA margin improved to 57.4% from 56.9% in the corresponding quarter last year.
Should you buy, sell or hold Airtel shares?
Citi retained its Buy rating on Bharti Airtel, with a target price of Rs 2,190 (12% upside), highlighting a strong June-quarter performance. Backed by double-digit growth in Airtel Business, overall India (excluding Indus) revenue and EBITDA increased by 11% and 13% year-on-year, respectively. Consolidated revenue and EBITDA of Rs 585 billion and Rs 336 billion were around 2% to 2.5%.CLSA maintained an Outperform rating on Bharti Airtel with a target price of Rs 2,330 (19.5% upside), saying the company’s first quarter performance exceeded expectations, driven by India and Africa. The brokerage noted that the launch of the postpaid “fast lane” offering helped Airtel record its highest ever postpaid subscriber additions, while ARPU rose 3% quarter-on-quarter to Rs 264. Consolidated free cash flow stood at Rs 165 billion after leases, with capex at Rs 134 billion and gearing remaining low at 1.2 times.
Macquarie reiterated its Outperform rating on Bharti Airtel with a target price of Rs 2,220 (13.5%), describing the June quarter as another strong performance. The brokerage said the company continues to deliver steady earnings growth, supported by improving subscriber additions and better-than-expected ARPU. It also highlighted the continued expansion in EBITDA margins, reflecting operating leverage from sustained revenue growth.
Jefferies maintained its Accumulate rating on Bharti Airtel and marginally raised its target price to Rs 2,360 (21% upside) from Rs 2,350. The brokerage said the company delivered another quarter of steady growth, with mobile subscriber additions and ARPU coming in above expectations. It also highlighted strong performances from Airtel Business and Africa, along with healthy free cash flow generation. Jefferies expects EBITDA and earnings per share to grow at a CAGR of 14% and 28%, respectively, between FY27 and FY29.
What Bharti Airtel’s management said
“We delivered yet another quarter of strong performance, supported by the resilience of our diversified portfolio and sharp execution across businesses,” said Bharti Airtel Executive Vice Chairman Gopal Vittal.
He added that during Q1, the company completed a large and an EPS accretive share swap transaction to increase our stake in Airtel Africa to over 79%. “This is a strong reflection of our conviction in Africa’s long-term growth potential and the significant opportunities across our businesses,” he said.
Read more: Airtel’s Fast Lane plan delivers faster downloads, lower latencies, shows analysis
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
