Bharti Airtel shares surged nearly 2% after the telecom major posted a sharp profit rise for the July–September quarter, prompting fresh buying interest from investors and bullish calls from brokerages.
The gain followed the company’s solid Q2 FY26 performance, which showed higher profitability, consistent subscriber upgrades, and rising average revenue per user (ARPU). Over the past year, the stock has surged about 33 percent, beating the Nifty’s 7.5% gain.
Motilal Oswal on Bharti Airtel: Steady execution, firm margins
Motilal Oswal retained its ‘Buy’ rating on Bharti Airtel with a target price of Rs 2,400, implying a 16 percent upside from current levels. The brokerage said Airtel’s operational performance remains strong, driven by better subscriber quality, improving ARPU, and stable pricing trends.
“Earnings growth continues to benefit from premium customer additions, network efficiency and calibrated capex,” Motilal Oswal said in its note. The firm added that Airtel’s margin profile remains among the best in the sector, backed by consistent cost discipline and a focus on profitable customer segments.
Bharti Airtel profit jumps 73.6% in Q2 FY26
Bharti Airtel reported a consolidated net profit of Rs 6,792 crore, up 73.6 percent year-on-year, while consolidated revenue rose 25.7 percent to Rs 52,145 crore. EBITDA increased 35.9 percent to Rs 29,919 crore, pushing the margin to 57.4 percent.
The company’s India business contributed Rs 38,690 crore in revenue, up 22.6 percent from a year earlier, with an EBITDA margin of 60 percent. Average revenue per user improved to Rs 256 from Rs 233, aided by premium upgrades and higher data usage. Airtel added 5.1 million smartphone users and 9.5 lakh home broadband subscribers in the quarter.
The brokerage said Airtel’s continued focus on high-value customers and broadband expansion has strengthened its cash flow visibility, while maintaining network quality leadership.
Motilal Oswal on Bharti Airtel: Africa business maintains strong growth
Airtel’s Africa unit posted another quarter of double-digit growth. Constant-currency revenue rose 24.2 percent, and the EBITDA margin stood at 48.8 percent. The company said the Africa business continues to benefit from network investments, stable local currencies, and growing data consumption.
Motilal Oswal said the segment adds both scale and diversification, helping offset timing gaps in tariff revisions in India.
Capex and leverage remain under control
Airtel spent Rs 11,362 crore in capital expenditure during the quarter, focused mainly on 5G rollout and broadband expansion. The company’s net debt-to-EBITDAaL ratio improved to 1.19x, showing continued deleveraging and healthy operating cash generation.
According to Motilal Oswal, Airtel’s capex discipline and steady balance sheet position give it room to invest without stretching leverage, a key advantage as the sector moves toward the next tariff adjustment cycle.
Motilal Oswal on Bharti Airtel: Momentum looks sustainable
Motilal Oswal said Airtel’s revenue and profit trajectory should remain strong over the next few quarters, helped by stable competition, rising data monetisation, and a higher share of premium subscribers.
At the current price, the stock trades near its peak range, but the brokerage said there is still scope for re-rating as operating leverage plays out. The report added that margins in India are likely to stay around 60 percent, while Africa’s contribution will continue to lift group profitability.
