Bharti Airtel (BHARTI IN) – Q2FY27 Result Update – Strategic initiatives drive ARPU expansion. – BUY
Published on 07 Nov 2026
BHARTI reported consol. Revenue and EBITDA of INR608.8bn and INR349.5bn inline with est. up 4.0% and 4.9% QoQ respectively, driven by strong momentum across India and Africa operations. In India Mobile, ARPU of INR271 came inline with our est (PLe: INR269), although subscriber additions of 0.7mn remained below our expectation (PLe: 4.0mn). Performance across the Home and Enterprise businesses remained steady, with EBITDA growing 1.4% and 1.3% QoQ, respectively. Homes continued to report healthy subscriber additions of 0.7mn; however, ARPU declined 2.6% QoQ to INR509. Digital business remained subdued, with EBITDA flat QoQ declining 8.8% YoY due to weakness in DTH business. Africa continued to deliver resilient performance with EBITDA margins growing to 50.3% vs 49.3% QoQ. Management remains focused on driving ARPU growth through pricing interventions and customer premiumization. In Homes, BHARTI is prioritizing FTTH expansion while scaling back FWA-led expansion. Africa continues as a long-term growth opportunity. Maintain BUY with a revised TP of INR2,411 (earlier INR2,367), based on an implied 12.2x Sep’28 EV/EBITDA for the India business, while additionally incorporating the value of investments in Airtel Africa, Indus Towers and Bharti Hexacom.
