How Did Bharti Airtel Achieve a 57% Net Profit Jump in Q1?
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Synopsis
In a remarkable financial performance, Bharti Airtel Limited has reported a 57.32% surge in net profit for Q1 FY26, raising questions about its growth strategies. As the telecom giant expands its customer base and invests significantly in infrastructure, its impressive figures reflect resilience and a promising future.
Key Takeaways
- Net profit surged by 57.32% to Rs 7,421.80 crore.
- Revenue from operations increased by 28.45% to Rs 49,462.60 crore.
- Average revenue per user (ARPU) rose to Rs 250.
- Consolidated EBITDA reached Rs 28,167 crore with a margin of 56.9%.
- Significant investments in digital infrastructure made during the quarter.
Mumbai, Aug 5 (NationPress) Bharti Airtel Limited has unveiled impressive results for the first quarter of the ongoing financial year (Q1 FY26), with its net profit soaring by 57.32% to Rs 7,421.80 crore. The telecom giant had recorded a profit of Rs 4,717.50 crore during the same quarter last year, as indicated in its stock exchange report.
Revenue from operations rose by 28.45% to Rs 49,462.60 crore, compared to Rs 38,506.40 crore in the previous year's corresponding period, fueled by significant growth in India and a recovery in Africa due to reported currency.
The company’s consolidated EBITDA reached Rs 28,167 crore, with an EBITDA margin of 56.9%.
Airtel’s average revenue per user (ARPU) was Rs 250 for the quarter, an increase from Rs 211 in Q1 FY25, as per the regulatory filing.
The India operations generated an EBITDA of Rs 22,352 crore, with margins improving to 59.5%, a rise of 598 basis points year-on-year.
The net debt to EBITDA ratio (annualized) for Bharti Airtel improved to 1.70 times, down from 1.86 times as of March 31.
Excluding lease obligations, this ratio was 1.26 times. The company invested Rs 8,307 crore in capital expenditure during the quarter, with Rs 7,273 crore designated for enhancing digital infrastructure in India.
In Africa, revenue in constant currency terms increased by 24.9% year-on-year, with the EBITDA margin climbing to 48.1%.
Airtel introduced new prepaid OTT packages providing access to over 25 platforms and launched the Business Name Display (BND) feature for enterprises during this quarter.
Vice-Chairman and Managing Director Gopal Vittal stated that the company achieved steady growth, with India mobile revenues rising by 2.9% sequentially, supported by portfolio premiumization and the addition of nearly 4 million smartphone data customers.
The Homes sector added a record 939,000 new connections, resulting in a 7.6% sequential revenue growth.
By the end of the quarter, Airtel’s customer base reached 605 million across 15 countries.
Vittal emphasized that this performance is a reflection of Airtel's ongoing investments, commitment to customer experience, and prudent capital allocation, noting that the company’s balance sheet remains robust with strong cash flow generation.
Point of View
I believe that Bharti Airtel's latest financial results highlight the company's strategic foresight and commitment to innovation. The impressive growth in both net profit and revenue showcases the effectiveness of its investments in technology and customer service, ensuring a competitive edge in the telecom sector. This reflects a broader trend in the industry where quality of service and infrastructure development are paramount.
NationPress
19/08/2025
Frequently Asked Questions
What was Bharti Airtel's net profit for Q1 FY26?
Bharti Airtel's net profit for Q1 FY26 reached Rs 7,421.80 crore, marking a 57.32% increase from the previous year.
How much did Airtel's revenue grow in Q1 FY26?
Airtel's revenue from operations grew by 28.45% to Rs 49,462.60 crore in Q1 FY26.
What was Airtel's average revenue per user (ARPU) for the quarter?
The average revenue per user (ARPU) for Airtel in Q1 FY26 was Rs 250.
What improvements were seen in Airtel's EBITDA?
Airtel's consolidated EBITDA for the quarter was Rs 28,167 crore, with an EBITDA margin of 56.9%.
What investments did Airtel make in Q1 FY26?
Airtel invested Rs 8,307 crore in capital expenditure during the quarter, focusing on strengthening digital infrastructure.
