top of page
Search

Bharti Airtel Ltd. Comprehensive Financial Analysis | Scrolls

Find Complete Report here:


1. Executive Summary

Bharti Airtel has delivered robust financial results for FY25, with net profit climbing 338%, maintaining the highest ARPU in the industry, and deploying aggressive 5G expansion. The stock currently reflects a premium valuation but continues to be supported by strong analyst sentiment and a stable industry structure.


2. Company Overview

  • Incorporation: 1995

  • Headquarters: New Delhi, India

  • Business Model: Mobile, broadband, digital TV, and enterprise services, targeting premium and mass-market customers

  • Global Reach: Operates in 18 countries, over 550 million customer base


3. Industry Analysis

  • Market structure: Oligopoly (Jio 40.3%, Airtel 33.1%, Vodafone Idea 18.9%)

  • Entry Barriers: High (capital, regulatory, spectrum)

  • Trends: 5G rollout, tariff hikes, rural penetration, digital services

  • Regulatory Backdrop: Supportive, with Digital India initiatives and 5G spectrum policies


4. Financial Performance

Metric (₹ Cr)

FY24

FY25

Growth (%)

Revenue

1,49,982

1,72,985

15

EBITDA

77,902

85,060

9.2

Net Profit

8,558

37,481

338

Operating FCF

2,200

2,550

-

ARPU (₹)

187

245

31

  • ROE: 23.2%

  • ROCE: 13.5%

  • Debt/Equity: 1.88

  • EBITDA Margin: 49.2%


5. Key Financial Ratios & Metrics

Ratio

Value

Industry Avg.

Price/Earnings (P/E)

34.1x

23.5x

Price/Book (P/B)

9.6x

6.2x

EV/EBITDA

11.5x

9.1x

Dividend Yield

0.84%

0.65%

6. Competitive Analysis

  • Airtel: Premium positioning (highest ARPU), best-in-class network

  • Jio: Largest market share, lower ARPU, aggressive pricing

  • Vodafone Idea: Market share challenged, lowest ARPU

Operator

Market Share

ARPU (₹)

5G Coverage

Jio

40.3%

195

~75% of India

Airtel

33.1%

245

~90% of urban/rural

Vodafone Idea

18.9%

135

Limited/urban only

7. Business Segment Analysis

Segment

Revenue Share

EBITDA Margin

Key Growth Driver

Mobile (India)

57%

52%

Tariff hikes, new subscribers

Africa

25%

45%

Market expansion, FX headwinds

Homes/Broadband

8%

35%

Fiber rollout, FWA

Enterprise

7%

40%

Cloud, IoT, security

8. Valuation Analysis

Valuation Approach

Value/Target Price

Notes

DCF

₹1,920–₹2,050

Sensitive to growth & WACC assumptions

SOTP

₹2,110 (Motilal Oswal)

Segmented, marks Indus/other assets to market

Analyst Consensus

₹2,025 (~6% upside)

Range: ₹1,325–2,370 (Jefferies top target)

Relative Valuation

P/E higher than industry

Warrants premium for market leadership

9. Investment Thesis

Strengths

  • Leadership in ARPU and network quality

  • Strong cash flows and improving balance sheet

  • Clear digital and enterprise growth strategies

  • Oligopolistic market, enabling sustainable margins

Catalysts

  • Further tariff hikes

  • 5G monetization (consumer + enterprise)

  • Rural and digital expansion (IoT, cloud, fintech)


10. Risk Assessment

  • Regulatory risk: Spectrum/AGR decisions, policy changes

  • High capital intensity: 5G/fiber rollout, required investments

  • Competition: Jio’s aggressive pricing, new entrants

  • Currency/EM risk: Africa operations exposed to FX volatility


11. Outlook & Recommendations

  • Rating: BUY (12-24 month horizon)

  • Target Price: ₹2,025–2,050

  • Key Monitoring: ARPU trends, 5G subscriber add, tariff regulation outcomes, leverage reduction


Note: Current valuations imply long-term execution must remain strong to justify premium multiples.


Scrolls by KarNivesh.

 

Comments

bottom of page