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Bharti Airtel Beats Q1 FY27 Forecasts With Strong Revenue, EBITDA and Postpaid Growth
Bharti Airtel Ltd. released its first‑quarter FY27 figures on Tuesday, showing consolidated revenue of ₹58,539 crore—a 18.4 % jump from the same period last year and a 5.7 % gain over the preceding quarter.
The company’s EBITDA rose to ₹33,599 crore, giving a margin of 57.4 %. Net income before exceptional items climbed to ₹8,057 crore, up 35.5 % from ₹5,948 crore a year earlier, while profit before tax increased 34.5 % to ₹14,126 crore.
Results beat consensus estimates by roughly 2–2.5 %, and Airtel shares traded at ₹1,967.90 on the NSE on Wednesday morning—a slight 0.11 % dip after opening higher at ₹2,020.
India business revenue stood at ₹41,214 crore, up 9.7 % YoY and 4.2 % QoQ, with an EBITDA margin of 60.1 %. Mobile average revenue per user (ARPU) improved to ₹264 from ₹250 a year earlier, a 5.6 % increase. The company added a record 1 million postpaid net additions, taking its postpaid subscriber base to 30 million. Smartphone data customers grew by 21.1 million year‑on‑year, now representing 80 % of the total mobile base, and mobile data consumption rose 36 % YoY to 34.4 GB per customer per month.
Other segments also delivered solid growth. The Homes segment saw a 33.2 % year‑on‑year revenue increase and added 473,000 customers, bringing the base to 14.7 million. Airtel Business revenue grew 12 % YoY, while Africa operations posted 21.1 % revenue growth in constant currency, with a customer base of 189 million. Across 15 countries, the consolidated customer base reached 680.9 million.
Financially, the company’s net debt to EBITDA ratio improved to 1.17 from 1.70 a year earlier, reflecting a stronger balance sheet. Capital expenditure for the quarter was ₹13,386 crore.
Analysts reacted positively. Citi maintained a Buy rating with a target price of ₹2,190, noting that India mobile revenue and EBITDA beat estimates and net debt fell 5 % sequentially. CLSA kept an Outperform rating and a target of ₹2,330, highlighting consolidated free cash flow of ₹165 billion for the quarter. Macquarie and Jefferies also gave favorable ratings, citing better‑than‑expected ARPU and subscriber metrics; Jefferies projected 14 % and 28 % compound annual growth rates in EBITDA and EPS for FY27‑29.
During the quarter, Airtel launched Postpaid Fast Lane, a 5G‑slicing‑based service that offers a dedicated network lane for postpaid customers. It also announced Airtel Secure Workforce, a Zero Trust Architecture security platform for enterprises, marking the company’s first fully‑managed, unified cybersecurity solution.
The company completed a share‑swap transaction that raised its stake in Airtel Africa to over 79 %. The transaction is part of a broader strategy to consolidate its African presence.
In summary, Bharti Airtel’s Q1 FY27 results show robust top‑line growth, improving profitability, and expanding customer base across its core segments. The company’s debt profile has tightened, and it has introduced new services that leverage 5G and cybersecurity capabilities. Investors will watch the upcoming earnings releases, shareholder votes, and any further regulatory developments that could affect the company’s operations in India and Africa.
The company’s EBITDA rose to ₹33,599 crore, giving a margin of 57.4 %. Net income before exceptional items climbed to ₹8,057 crore, up 35.5 % from ₹5,948 crore a year earlier, while profit before tax increased 34.5 % to ₹14,126 crore.
Results beat consensus estimates by roughly 2–2.5 %, and Airtel shares traded at ₹1,967.90 on the NSE on Wednesday morning—a slight 0.11 % dip after opening higher at ₹2,020.
India business revenue stood at ₹41,214 crore, up 9.7 % YoY and 4.2 % QoQ, with an EBITDA margin of 60.1 %. Mobile average revenue per user (ARPU) improved to ₹264 from ₹250 a year earlier, a 5.6 % increase. The company added a record 1 million postpaid net additions, taking its postpaid subscriber base to 30 million. Smartphone data customers grew by 21.1 million year‑on‑year, now representing 80 % of the total mobile base, and mobile data consumption rose 36 % YoY to 34.4 GB per customer per month.
Other segments also delivered solid growth. The Homes segment saw a 33.2 % year‑on‑year revenue increase and added 473,000 customers, bringing the base to 14.7 million. Airtel Business revenue grew 12 % YoY, while Africa operations posted 21.1 % revenue growth in constant currency, with a customer base of 189 million. Across 15 countries, the consolidated customer base reached 680.9 million.
Financially, the company’s net debt to EBITDA ratio improved to 1.17 from 1.70 a year earlier, reflecting a stronger balance sheet. Capital expenditure for the quarter was ₹13,386 crore.
Analysts reacted positively. Citi maintained a Buy rating with a target price of ₹2,190, noting that India mobile revenue and EBITDA beat estimates and net debt fell 5 % sequentially. CLSA kept an Outperform rating and a target of ₹2,330, highlighting consolidated free cash flow of ₹165 billion for the quarter. Macquarie and Jefferies also gave favorable ratings, citing better‑than‑expected ARPU and subscriber metrics; Jefferies projected 14 % and 28 % compound annual growth rates in EBITDA and EPS for FY27‑29.
During the quarter, Airtel launched Postpaid Fast Lane, a 5G‑slicing‑based service that offers a dedicated network lane for postpaid customers. It also announced Airtel Secure Workforce, a Zero Trust Architecture security platform for enterprises, marking the company’s first fully‑managed, unified cybersecurity solution.
The company completed a share‑swap transaction that raised its stake in Airtel Africa to over 79 %. The transaction is part of a broader strategy to consolidate its African presence.
In summary, Bharti Airtel’s Q1 FY27 results show robust top‑line growth, improving profitability, and expanding customer base across its core segments. The company’s debt profile has tightened, and it has introduced new services that leverage 5G and cybersecurity capabilities. Investors will watch the upcoming earnings releases, shareholder votes, and any further regulatory developments that could affect the company’s operations in India and Africa.
