Bharti Airtel reported a robust Q4FY25 with consolidated EBITDA of ₹270bn (+39.5% YoY) and adjusted PAT of ₹111.6bn, boosted by a ₹28.9bn tax write-back. India mobile revenue grew 20.6% YoY to ₹266.2bn, with ARPU steady at ₹245 and 5mn net subscriber additions. Enterprise revenue declined, while home broadband and Africa operations showed healthy growth. Capex stood at ₹144bn (₹125bn in India). Airtel’s outlook remains strong, with a TP of ₹1,988 and an ‘Accumulate’ rating.
Key Highlights:
India Mobile Business:
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Revenue rose to ₹266.2 billion (+20.6% YoY; +1.3% QoQ), with stable EBITDA margin at 59.2%.
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Average Revenue Per User (ARPU) remained flat QoQ at ₹245, growing 17% YoY on the back of tariff hikes.
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Net subscriber addition stood at 5 million during the quarter.
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FY25/26/27E subscriber base is estimated at 362/378/394 million, with ARPU projected at ₹233/265/272 respectively.
Capex:
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Consolidated capex for Q4 was ₹144 billion, with ₹125 billion invested in India.
Segmental Performance:
Enterprise Business:
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Revenue came in muted at ₹53.2 billion (-3% YoY, -5.9% QoQ), though EBITDA rose to ₹22.4 billion.
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EBITDA margins improved from 35.2% in Q3 to 42.1% in Q4.
Home Services (Fixed Line + Broadband):
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Revenue grew 5.8% QoQ to ₹16 billion; EBITDA increased 6.6% to ₹8 billion with 49.9% margin.
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ARPU dropped 2.1% QoQ to ₹543; net subscriber additions stood at 0.8 million.
DTH Services:
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Revenue remained flat QoQ at ₹7.6 billion; EBITDA declined 13% QoQ to ₹3.8 billion.
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ARPU increased slightly to ₹162 (+1.5% QoQ), with net additions of 76,000.
Africa Business:
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Revenue growth remained strong at 22% YoY and 6.3% QoQ, with EBITDA margin at 47.5%.
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ARPU stood flat QoQ at $2.4; subscriber additions slowed to 2.9 million (Q3: 6.5 million).
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Monthly churn rose to 4.2% from 3.8% in the previous quarter.
Valuation & Outlook:
We continue to hold a positive outlook on Bharti Airtel’s India mobile business, underpinned by strong execution, improving ARPU trends, and tariff tailwinds. The company’s stable operating margins and improving Africa business further support long-term growth.
We value the India business at 13x FY27 EV/EBITDA and add contributions from Airtel Africa, Indus Towers, and Bharti Hexacom to arrive at a revised Target Price of ₹1,988. Maintain ‘Accumulate’.