Summary
Bharti Airtel Limited - Q3 FY2026 Earnings Call Summary Friday, February 06, 2026, 14:30 hrs
Event Participants
Executives 6 Akhil Garg (CFO India), Gopal Vittal (Executive Vice Chairman), Karthikeyan Velu (Group Financial Controller), Naval Seth (Head of IR), Shashwat Sharma (MD & CEO India), Soumen Ray (Group CFO)
Analysts 6 Arun Prasath (Avendus Spark), Gaurav Malhotra (Axis Capital), Gaurav Rateria (Morgan Stanley), Manish Adukia (Goldman Sachs), Piyush Choudhary (HSBC), Pranav Kshatriya (Emkay Global), Sanjesh Jain (ICICI Securities), Vivekanand Subbaraman (Ambit Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue | ₹54,000 crores | +3.5% QoQ; driven by strong India mobile and Africa constant currency growth (+5.8%). |
| Consolidated EBITDAaL | ₹27,700 crores | +4.2% QoQ; margins improved 30 bps to 51.3%. |
| India Revenue | ₹37,517 crores* | +2.1% QoQ (ex-passive infra); India mobile and broadband served as primary growth engines. |
| India EBITDAaL | ₹18,450 crores | +2.8% QoQ (ex-passive infra); margin at 51.8%, supported by “War on Waste” cost controls. |
| ARPU (India Mobile) | ₹259 | +₹10 YoY/QoQ (approx); led by portfolio premiumization and 4G/5G upgrades in the absence of tariff repair. |
| 5G Customer Base | 181 million | Significant scale-up; 5G standalone (SA) now rolled out pan-India for FWA and mobile. |
| Consolidated Net Debt | ₹1.43 lakh crores* | Net Debt/EBITDAaL improved to 1.02x; India-specific leverage at 1.38x. |
| Capex (Q3) | ₹11,800 crores | ₹7,100 crores allocated to India; focus shifting from 5G coverage to transport, homes, and data centers. |
*Calculated/Derived from consolidated totals and segment percentages provided.
Geographic & Segment Commentary
- India Mobile: Revenue growth moderated to single digits (<10%) due to market softening and lack of recent tariff repair. Strategy remains focused on “sweating” ARPU through smartphone upgrades, postpaid migration (90M target), and international roaming, which grew 30% YoY.
- India Homes (Broadband): Delivered record quarterly net adds of 1.2 million, reaching 13 million connected homes. FWA has expanded the addressable market, now serving over 3 million customers across 3,200 cities, complementing the fiber footprint in 1,500 cities.
- Airtel Business (B2B): Revenue of ₹5,350 crores (+1.5% QoQ). While core connectivity (45% of revenue) grows at 5-6%, digital adjacencies (Cloud, IoT, Cyber Security) grow at 20-30%, offsetting challenges in wholesale voice.
- Airtel Africa: Accounts for 27% of revenues; constant currency growth remains robust at 20%+. Management noted currency stabilization in Nigeria as a tailwind for reported numbers, with the asset considered undervalued by the board.
- Bharti Hexacom: Reported revenue of ₹2,360 crores; mobile ARPU at ₹253. Homes business saw 10% sequential growth, though mobile performance was slightly impacted by partner-related technical interferences in specific circles.
Company-Specific & Strategic Commentary
- Data Center Expansion (Nxtra): Management plans to scale capacity from current levels to 1 gigawatt over 3-4 years, aiming for a 25% market share (up from 12%) to capitalize on AI-driven demand.
- Digital Portfolio & Finance: Digital services revenue grew 39% YoY; Airtel Finance loan disbursements reached a ₹500 crore monthly run-rate, while Payments Bank deposits grew 28% YoY to ₹4,300 crores.
- Network Evolution (5G Standalone): Airtel has transitioned to 5G SA for FWA and is phased-shifting mobile customers to SA. Network slicing and “priority-based” services are currently in lab testing for future monetization.
- AI Integration: AI-powered Anti-Spam has blocked 71 billion spam calls; 70% of customer service interactions are now handled by voice bots, and AI dynamically optimizes radio power cycles for cost savings.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Data Center Capacity | 1 GW (3-4 Year Horizon) | Targeting 25% market share via heavy capex and potential consolidation of fragmented industry. |
| Connected Homes | 100 million (Medium Term) | Industry-wide potential; Airtel targeting aggressive share via “Fiber-first” strategy augmented by FWA. |
| Capex Intensity | Moderating Radio; Increasing Adjacencies | 5G coverage capex to pull back; funds to be redirected to transport resiliency and Nxtra capacity. |
| Leverage | Below 1.5x Net Debt/EBITDAaL | Commitment to remaining one of the lowest-leveraged telcos globally while maintaining progressive dividends. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory/AGR Dues | Management has requested parity in AGR treatment following recent court rulings for peers; ₹1 billion payment due in March 2026 remains a cash flow factor. |
| ARPU Stagnation | In the absence of industry-wide tariff repair, revenue growth has slowed to single digits; reliance on organic “premiumization” may hit a ceiling as the base grows. |
| Currency Volatility | While Nigeria has stabilized, Africa operations remain exposed to 5-7% annual structural devaluation risks inherent in the markets. |
| Competitive FWA Intensity | Rapid “land grab” in fixed wireless requires balancing customer experience with rapid deployment to avoid high churn seen in early FWA phases. |
Q&A Highlights
ARPU & Tariff Repair
- Question: With revenue growth falling below 10%, at what point is tariff repair necessary? (Manish Adukia)
- Answer: Market growth has softened to ~6%. Airtel is using “creative avenues” like A/B testing and persuasion-based upgrades to push ARPU in the interim (Gopal Vittal).
Capital Allocation & Rights Issue
- Question: Why call the remaining rights issue now, and will dividends increase? (Piyush Choudhary)
- Answer: The 3-year term for the rights issue was ending, necessitating the call. Capital will be prioritized for core business, Data Centers (Nxtra), and Cloud (Soumen Ray).
B2B Strategy & Cloud
- Question: What is the growth trajectory for the enterprise business? (Vivekanand Subbaraman)
- Answer: Growth is double-digit (10%) if low-margin wholesale voice is excluded. Digital adjacencies like IoT and Cloud are growing at 30% and will eventually dominate the mix (Gopal Vittal).
Network Technology (5G SA & Slicing)
- Question: Are you implementing 5G slicing or differential pricing? (Sanjesh Jain)
- Answer: Capabilities for slicing and “network on demand” are ready and in labs. Management prefers a “pay more for more” data architecture over a simple 5G premium to avoid customer confusion (Shashwat Sharma).
Key Takeaway
Bharti Airtel delivered a steady Q3 FY26 with consolidated revenue of ₹54,000 crores and a 30 bps margin expansion to 51.3%. While India mobile growth has moderated to single digits due to a lack of tariff intervention, the company successfully offset this through “portfolio premiumization,” reaching an ARPU of ₹259 and scaling 5G customers to 181 million. Strategically, the focus is shifting toward “future-proofing” through a 1-gigawatt data center ambition and the scaled deployment of 5G Standalone (SA) architecture. The balance sheet remains exceptionally strong with a Net Debt/EBITDAaL of 1.02x, providing significant headroom for inorganic moves in fragmented digital adjacencies. Looking ahead, Airtel intends to leverage its AI stack to drive “War on Waste” efficiencies while aggressively pursuing the 100-million connected home opportunity via a hybrid Fiber-FWA approach.
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