The second largest telecom operator of India, Bharti Airtel has announced a final dividend of Rs 16 per fully paid-up equity share. The announcement came alongside its Q4 FY25 result. From rising average revenue to Buy recommendation from brokerage, here is a breakdown of five key takeaways from Bharti Airtel’s Q4 update.
Bharti Airtel’s Rs 16 dividend
The board of Bharti Airtel has recommended a final dividend of Rs 16 per equity share for fully paid-up shares, and Rs 4 per share for partly paid-up equity shares. This payout, according to the company’s regulatory filing, is for the financial year 2024-25.
Jefferies on Bharti Airtel’s dividend
According to the brokerage firm, Jefferies, “Bharti’s dividend of Rs 16/share implies an 85% payout of distributable free cash flow.” The telecom major’s consolidated free cash flow rose 77% year-on-year to Rs 36,800 crore, led by strong cash from operations.
After adjusting for advance spectrum repayments worth Rs 26,000 crore, Airtel’s distributable free cash flow stood at Rs 10,800 crore (Rs 18.6/share), making this dividend not only substantial but also sustainable.
Jefferies remains bullish
The brokerage Jefferies has reiterated its ‘Buy’ rating on Bharti Airtel with a revised target price of Rs 2,210, suggesting a potential upside of over 20% from current levels.
According to the brokerage report, “Bharti’s 4Q results beat estimates with strong ARPU growth, subscriber adds, healthy margins and sharp rise in dividends being the key highlights.” It also sees continued momentum post the tariff hikes and expects Bharti Airtel to deliver a 15-18% CAGR in revenues and EBITDA over FY25-28.
Bharti Airtel’s Q4FY25 performance
Bharti Airtel reported a consolidated profit after tax of Rs 11,022 crore in the March quarter, far exceeding analysts expectations. The company’s ARPU (average revenue per user) increased to Rs 245 in Q4FY25, up from Rs 209 a year ago.
Bharti Airtel share price
Bharti Airtel’s share price reacted positively in early trade after Q4 results, surging nearly 3%. Although it later in the intraday trading, remained up by about 0.5% during the session.
In the last five trading days, the share price of the second largest telecom operator declined 3.5%. Looking on a monthly basis, it posted a modest gain of around 2% and over the past six months, the stock has returned approximately 18%, and in the last one year, it has rallied nearly 42%. On a YTD basis, Bharti Airtel’s stock is up close to 15%.
With a market capitalisation of Rs 10.97 lakh crore, the company’s stock has touched a 52-week high of Rs 1,917 and a low of Rs 1,219.05.