Bharti Airtel Ltd delivered a steady financial performance in the June quarter of FY26, reaffirming its position as India’s second-largest telecom operator. The quarter was marked by strong growth in mobile data usage, increased user base, and industry-leading monetization, reinforcing Airtel’s long-term strategy of premiumization amid a rapidly evolving telecom landscape.
1. Strong Revenue and Arpu Performance
Airtel posted a consolidated revenue of ₹49,463 crore in Q1FY26, marking a 28.5% year-on-year (Y-o-Y) rise and a 3.3% sequential increase. This was driven primarily by growth in the India mobile services segment and Airtel Africa. Though it missed Bloomberg’s estimate of ₹49,762 crore, the topline expansion was supported by:
- Addition of 4 million new smartphone data users.
- An additional day in the quarter.
- Focus on high-value services.
The standout metric was Airtel’s average revenue per user (Arpu), which rose to ₹250 — up ₹5 or 2% sequentially — maintaining its lead over Reliance Jio (₹208.8) and well ahead of Vodafone Idea (yet to report). Arpu remains a crucial indicator of user monetization and financial health in the capital-intensive telecom industry.
2. Profitability and One-Off Impacts
Net profit for the quarter stood at ₹5,948 crore, up 43% Y-o-Y. However, this figure is not directly comparable due to a structural change — Indus Towers, now a subsidiary since November, was previously an associate.
On a sequential basis, profit dropped 46% from ₹11,022 crore in Q4FY25, which had included a one-time deferred tax benefit of ₹5,913 crore. Adjusted for this, core profitability remained resilient.
3. Mobile Subscriber Trends and Market Dynamics
Despite adding fewer users this quarter (1.2 million vs. 5 million in Q4), Airtel’s total mobile subscriber base rose to 362.8 million. Its India mobile revenue stood at ₹27,397 crore, contributing 55% to the company’s overall revenue. This segment grew 2.9% sequentially and 16% Y-o-Y.
The sector continues to inch closer to a duopoly, as Vodafone Idea’s financial struggles and BSNL’s stagnant performance leave Airtel and Reliance Jio as dominant forces. Investor focus remains on upcoming tariff hikes and their impact on Arpu and subscriber churn.
4. Segment-Wise Highlights
- Airtel Business: Revenue declined to ₹5,057 crore — down 7.7% Y-o-Y and 4.9% Q-o-Q. The drop reflected the full impact of the exit from low-margin wholesale voice and messaging services. However, the core enterprise funnel remained healthy with a 2% sequential growth.
- Homes Business: Reported a strong 25.7% Y-o-Y jump in revenue to ₹1,718 crore. The company added:
- 939,000 WiFi customers.
- 1.6 million new fibre home passes.
- Expanded its Fixed Wireless Access (FWA) footprint.
- Postpaid Segment: Airtel gained 700,000 postpaid users, bringing the base to 26.6 million.
5. Margins, Debt & Capex
Earnings before interest, tax, depreciation and amortization (Ebitda) grew 41.2% Y-o-Y and 2.8% Q-o-Q, with an Ebitda margin of 56.9%. This represents a 30 bps decline Q-o-Q but a robust 190 bps increase Y-o-Y.
Net debt stood at ₹1.9 trillion, up slightly from a year ago but down from ₹2 trillion in Q4FY25. Capex spending moderated to ₹8,307 crore from ₹14,401 crore in the previous quarter, indicating a more balanced approach to investments.
6. Policy & Strategic Moves
Bharti Airtel has sought clarification from the government about its eligibility to convert statutory dues into equity — a move its rival Vodafone Idea has already pursued. While the board hasn’t made a decision yet, the company insists on a non-discriminatory policy environment.
Gopal Vittal, vice-chairman and MD, emphasized the strength of the company’s balance sheet, citing “solid cash flow generation and disciplined capital allocation” as pillars of its financial strategy.
Conclusion: Airtel Builds a Durable Foundation Amid Sector Flux
Bharti Airtel’s Q1FY26 performance underscores its strategic emphasis on quality subscribers, premium pricing, and sustainable growth. As the Indian telecom sector moves toward consolidation, Airtel’s execution — especially its industry-best Arpu and steady subscriber additions — gives it an edge in navigating the competitive and regulatory environment.
Analysts and investors will watch closely for signals around tariff hikes, 5G monetization, and government policies on equity conversion — all of which could shape the next phase of Airtel’s journey.
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This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.