Bharti Airtel is in focus. The stock is up 17% in 2025 so far. Global brokerage firms Jefferies and Macquarie are positive on it and see it as a ‘top pick’ in India’s telecom space. Backed by steady subscriber additions, premium user base, rising revenue trajectory, and margin expansion, Airtel is “emerging as a standout performer in a consolidating sector,” as per Jefferies.
Why is Bharti Airtel top telecom pick for Jefferies & Macquarie?
Jefferies sees it as the best way to play the telecom revival story, Macquarie has raised its price target. Let’s take a look at what brokerages are saying –
Jefferies on Bharti Airtel: Reiterate Buy
The brokerage firm Jefferies has reiterated its ‘Buy’ rating on Bharti Airtel, calling it the “preferred way to participate in the ongoing revival in the Indian telecom sector.”
As per the brokerage report, the telecom operator is backed by healthy subscriber additions, resilient revenue growth, and expanding margins.
Here’s a look at the three key reasons why Jefferies remains bullish on the stock:
Jefferies on Bharti Airtel: Subscriber growth rebounds post tariff hike
Bharti Airtel added 5 million new subscribers in the fourth quarter of FY25, the second-highest after Jio’s 6 million.
According to Jefferies, this sharp rebound in user additions suggests that the market has absorbed the recent tariff hikes. Interestingly, Airtel gained 7 million users over the last three quarters, while rivals like Jio and Vodafone Idea (VIL) lost 1.5 million and 11.9 million, respectively.
“A higher share of Bharti’s subscribers use its connection as a primary SIM compared to Jio or Vodafone Idea,” the brokerage noted in its report.
Jefferies on Bharti Airtel: Revenue and ARPU growth backed by premium users
As per Jefferies, Bharti Airtel has seen the highest revenue growth since the first quarter post the tariff hikes, clocking a 16% increase, compared to Jio’s 12% and VIL’s 13%. Bharti Hexacom, a subsidiary, also showed performance with a 23% YoY jump in Q4 revenues.
Even in terms of Average Revenue Per User (ARPU), Airtel continues to lead. While the industry ARPU remained mostly flat quarter-on-quarter, Airtel and Hexacom saw a cumulative ARPU increase of 16-18%, which is higher than the 12-13% growth seen by Jio and Vodafone Idea.
Jefferies pointed out this outperformance to Airtel’s “premium subscriber base,” which has seen a stronger translation of tariff hikes into revenue.
Jefferies on Bharti Airtel: Improving margins and cost efficiencies
According to the report, aggregate Ebitda margins for the top 3 telcos rose by 20 basis points to 53.6%, with Airtel outperforming its peers.
The company has managed to drive strong margin expansion through a combination of residual tariff benefits, lower network operating expenses, and reduced SG&A costs. This as per the brokerage report resulted in a superior incremental margin profile compared to its competitors.
Though Reliance Jio captured about 50 basis points in revenue market share during the quarter, Bharti’s dip was marginal at 10 bps. VIL, meanwhile, continues to struggle, losing share for the 10th consecutive quarter, with its revenue share now slipping to 13.2% from 18% in Q2FY23.
Macquarie on Bharti Airtel: Positive outlook
Macquarie also maintains a positive outlook on Bharti Airtel and has raised its target price as well. Let’s take a look at the brokerage’s rationale behind this upgrade-
Macquarie on Bharti Airtel: Raises target to Rs 2,050
The global brokerage firm Macquarie raised its one-year price target on the telecom major by 14% to Rs 2,050 per share. The upgrade comes on the back of improving chances of a more optimistic scenario playing out for the stock.
Why Macquarie is bullish on Airtel
According to the brokerage report, Bharti Airtel continues to be a core investment idea and remains part of Macquarie’s “India Super 6s” list. The brokerage has now adopted a scenario-weighted approach to better reflect the stock’s growth potential and future possibilities.
As per the brokerage report, the revised target of Rs 2,050 implies a 4% free cash flow (FCF) yield at the consolidated level.
According to the brokerage, the improving financial outlook and industry dynamics make a strong case for Airtel to continue performing well in the coming quarters.
In its base case, Macquarie projects an average revenue per user (ARPU) of Rs 290 by FY27. This would be an 11% jump from current levels, with Rs 45 of that increase expected to happen by FY25. As per the brokerage report, this helps raise the base case fair value of the stock to Rs 1,920.