Bharti Airtel Upgraded to ‘BBB+’ by S&P: Key Highlights
- 25th June 2026
- 11:20 AM
- 2 min read
PL Capital
Summary
S&P Global Ratings has upgraded Bharti Airtel's credit rating from 'BBB' to 'BBB+'.Mumbai | June 25, 2026
Positive Rating Action
- S&P Global Ratings has upgraded Bharti Airtel’s credit rating from ‘BBB’ to ‘BBB+’.
- The upgrade reflects Airtel’s strong growth in India and Africa, along with continued balance sheet discipline.
Why the Upgrade?
- Rising data consumption and a favorable competitive environment are expected to support earnings growth.
- S&P expects:
- Subscriber growth: 3-4% annually
- ARPU (Average Revenue Per User) growth: 5-7% annually
- Premium offerings and customer migration from competitors are likely to further strengthen Airtel’s revenue.
Strong Outlook for Africa Business
- Airtel Africa is expected to outperform earlier expectations.
- S&P forecasts:
- Customer base growth: 9-11% annually
- ARPU growth: 5-7% annually (in US dollar terms) through FY28
- Airtel Africa’s contribution to consolidated EBITDA is projected to rise to 25-27%, compared with earlier estimates of around 20%.
Financial Projections
- Consolidated earnings are expected to grow 8-10% annually over the next two years, following a 28% increase in FY26.
- Strong cash flow generation is expected to improve Airtel’s financial profile over the next 12-24 months.
Key Watch Point
- S&P highlighted the debt position of Bharti Telecom Ltd., Airtel’s parent company.
- Since Bharti Telecom primarily holds Airtel shares and has limited operating income, higher debt could increase dependence on dividends from Bharti Airtel for debt servicing.
Other Considerations
- Airtel’s financial services business in India may require additional capital investments as it expands in the coming years.
Market Impact
The rating upgrade is a positive signal for investors, reflecting confidence in Airtel’s growth trajectory, improving cash flows, and strengthening financial position across both India and Africa.
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