Why Did Bharti Airtel's Net Profit Plunge 55% to Rs 6,630.5 Crore in Q3?
Synopsis
In a surprising financial report, Bharti Airtel has revealed a staggering 55% drop in net profit for Q3 of FY26. This significant decline raises questions about the telecom giant's market performance amidst rising expenses and previous exceptional gains. Discover the insights behind these numbers and what they mean for the industry.
Key Takeaways
Net profit fell by 55% to Rs 6,630.5 crore.
Total revenue increased by 19.92% to Rs 54,683.9 crore.
Average revenue per user (ARPU) rose to Rs 259 .
Data consumption increased by 6.6% to 26,056 million GB.
Airtel's workforce decreased to 24,186 employees .
Mumbai, Feb 5 (NationPress) - Bharti Airtel, a frontrunner in the telecom sector, disclosed a remarkable 55% decline in its net profit, amounting to Rs 6,630.5 crore (post exceptional items) for the third quarter of the 2026 fiscal year, marking a stark contrast to Rs 14,781.2 crore in the corresponding quarter of the previous fiscal year.
This profit drop is largely due to a high base effect from the last fiscal year. In the December quarter of FY24, Airtel enjoyed an unusual gain of Rs 7,545.6 crore.
Moreover, the company's profitability faced pressure from additional costs totaling Rs 256.8 crore linked to the new Labour Codes.
On a quarterly comparison, profits saw a 2.3% decline, down from Rs 6,791.7 crore recorded in the September quarter of FY26.
Airtel's total revenue for the December quarter reached Rs 54,683.9 crore, representing a significant 19.92% increase from Rs 45,599 crore during the same timeframe last fiscal year.
The overall expenses for this quarter amounted to Rs 23,198.8 crore, a rise from Rs 20,532.7 crore in the December quarter of FY25, illustrating a year-on-year 12.98% surge.
“Revenue from India, including passive infrastructure services, saw a 1.4% sequential increase. Africa has continued its impressive performance with a constant currency revenue growth of 5.8%. Our enhanced performance in Africa is attributed to the successful deployment of our indigenous digital stack, enhancing our market strategies,” stated Gopal Vittal, Executive Vice Chairman.
Average revenue per user (ARPU) for the December quarter hit Rs 259, an increase from Rs 256 in September and Rs 245 in December 2024.
During the December quarter, data consumption on Airtel's network reached 26,056 million GB, up 6.6% from 24,446 million GB in the September quarter, and 29.2% more than the 20,174 million GB consumed in December last year.
Each user consumed an average of 29.8 GB per month in December, reflecting a 5% rise from 28.3 GB in September and a 21.5% increase over the 24.5 GB recorded in December last year.
Airtel's workforce saw a decline both quarterly and annually, with 24,186 employees in the December quarter of FY26. This is 205 less than the September quarter and 340 fewer than the same quarter last fiscal year.
Point of View
I recognize that Bharti Airtel's recent profit drop is a significant marker of the telecom industry's volatility. While the decline raises concerns, it's essential to consider the broader economic context and previous exceptional gains. The company's adaptability in navigating challenges will be vital for its future growth. NationPress remains committed to providing comprehensive coverage of such key developments.
NationPress
10 May 2026
Frequently Asked Questions
What caused Bharti Airtel's net profit decline?
The 55% decline in Bharti Airtel's net profit is primarily attributed to a high base effect from the previous fiscal year and additional costs related to the new Labour Codes.
How did Airtel's revenue perform in the December quarter?
Airtel's total revenue for the December quarter reached Rs 54,683.9 crore, marking a 19.92% increase compared to Rs 45,599 crore in the same quarter last fiscal year.
What was Airtel's Average Revenue Per User (ARPU) in Q3?
In the December quarter, Airtel's ARPU was Rs 259, which is an increase from Rs 256 in the September quarter and Rs 245 in December 2024.
How much data did Airtel's network consume in Q3?
Airtel's network consumed 26,056 million GB of data in the December quarter, representing a 6.6% increase compared to the previous quarter.
What is the current employee count for Airtel?
As of the December quarter of FY26, Airtel's employee count stands at 24,186, which is a decrease from both the previous quarter and the same quarter last year.
