Bharti Airtel shares rise after Q1 FY26 net profit jumps 43% to ₹5,948 crore. Strong ARPU growth, record broadband additions cheer brokerages and investors.
Bharti Airtel Q1 FY26 Earnings Spark Market Rally
On August 6, 2025, shares of Bharti Airtel Ltd gained as the telecom major reported a stellar 43% YoY rise in net profit to ₹5,948 crore for Q1 FY26, driven by strong ARPU (Average Revenue Per User) and growing subscriber base. This marks the company’s fifth consecutive quarter of profit growth, with brokerages commending the results and highlighting the effectiveness of its pricing strategies.
📊 Key Financial Highlights – Q1 FY26
💼 Profit & Revenue
- Net Profit: ₹5,948 crore, up from ₹4,159 crore in Q1 FY25
- Revenue from Operations: ₹49,463 crore, a 28.5% YoY increase
- Quarter-on-quarter revenue growth: 3.3%
📈 ARPU & Subscriber Growth
- ARPU: ₹250 (vs ₹211 YoY), a 18.5% YoY increase
- Smartphone Users: 21.3 million added YoY; now 77% of mobile user base
- Mobile Data Usage: 21.6% YoY rise; 26.9 GB/month per user
- Postpaid Users: 0.7 million added; total now at 26.6 million
- Customer Base: 43.6 crore (436 million) at Q1-end
🏠 Home Business Hits Record High
🔌 Broadband Expansion
- New Wi-Fi Users (Q1): 939,000 (All-time high)
- Home Broadband Base: Reached 11 million
- Fiber Installations: 1.6 million home-pass fiber connections added
- Total Fiber Added (YoY): 43,700 km
- Towers Added (YoY): 15,400
- Broadband Sites Added (Q1): 7,500
📺 IPTV & DTH Growth
- IPTV Customers Added: 6.5 lakh
- DTH Subscriptions in India: 5.6 crore
- Fixed-Line Internet Households: Approx. 4 crore
Bharti Airtel called the home segment a “strong momentum driver,” with the best-ever quarterly additions.
💬 CEO Commentary: Focus on Premiumisation
Airtel CEO Gopal Vittal attributed the performance to:
- “Greater realisation” from Jan 2025 tariff hikes
- Focus on premium users: “40% of users generate 80% of revenue,” he noted(Bharti Airtel Shares )
- “We are leaning into high-value customers for sustained growth.”(Bharti Airtel Shares )
This “portfolio premiumisation” is Airtel’s strategic bet to boost long-term margins.
💸 Capex & Free Cash Flow (FCF)
- Capex (Q1 FY26): ₹5,450 crore (Lower than estimates)
- Free Cash Flow (FCF): Record levels
- Lower capex helped reduce consolidated net debt, boosting investor confidence.
📈 Market Reaction: Airtel Shares Climb
At 9:20 a.m. on August 6, Bharti Airtel shares were up 1.4% at ₹1,959.1 on the NSE. The strong financial results and bullish commentary sparked buying interest.
🔍 What Brokerages Are Saying
Morgan Stanley
- Rating: Equal-weight
- Target Price: ₹1,890
- View: EBITDA beat and strong ARPU trend, supported by controlled capex
CLSA
- Rating: Outperform
- Target Price: ₹2,035
- Highlights: Industry-leading ARPU and all-time high subscriber additions in Homes
Macquarie
- Rating: Outperform
- Target Price: ₹2,050
- Remarks: Strong ARPU print, capex discipline, and record FCF
- “Record FCF generation likely to drive positive Street sentiment,” said the note.
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📉 Segment-wise Analysis
| Segment | YoY Growth | Key Notes |
|---|---|---|
| Mobile | Strong | ARPU ₹250; stable base |
| Home (Broadband/IPTV) | 25.7% | Record 9.39 lakh additions |
| Business | -7.7% | Rationalised low-margin services |
🔁 Challenges & Outlook
While Airtel continues to shine in ARPU and subscriber quality, growth in new users has slowed:
- Only 0.2% mobile subscriber base growth in June 2025 (post-Q1 period)
- Future growth likely hinges on tariff hikes and high-end offerings (Bharti Airtel Shares )
However, with rising per-user data consumption and deeper broadband penetration, long-term fundamentals remain strong.
❓ Frequently Asked Questions (FAQs)
1. Why are Bharti Airtel shares rising in August 2025?
Airtel shares gained after the company posted a 43% YoY jump in Q1 FY26 net profit, driven by strong ARPU and broadband growth.
2. What is ARPU, and why is it important for Airtel? (Bharti Airtel Shares )
ARPU stands for Average Revenue Per User. It reflects how much revenue Airtel earns per customer. Airtel’s ARPU hit ₹250 this quarter, leading the industry.
3. How many new subscribers did Airtel add in Q1 FY26?
Airtel added 21.3 million smartphone users YoY, 0.7 million postpaid users, and 9.39 lakh broadband customers.
4. What is Airtel’s current share price and target according to brokerages?
As of August 6, 2025, Airtel shares were trading at ₹1,959.1. Brokerages like CLSA and Macquarie have target prices of ₹2,035–₹2,050.
5. What is Bharti Airtel’s future growth strategy?
Airtel is focusing on high-ARPU customers, broadband expansion, and tariff hikes for future revenue growth.(Bharti Airtel Shares )
Reuters – Bharti Airtel Posts 43% Jump in Profit
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