Airtel shares slip post Q1 despite target hikes; buying opportunity ahead?

Bharti Airtel shares fell even as analysts raised the target price after a positive June quarter results

Shares of Bharti Airtel slipped in Thursday's session, even as analysts upped the target price after the company's June quarter profit rose 43 per cent year-on-year (Y-o-Y). 

 

The telecom major's stock fell as much as 0.8 per cent during the day to ₹1,914 per share. The stock was trading 0.7 per cent lower at ₹1,916 apiece, compared to a 0.39 per cent decline in Nifty 50 as of 9:57 AM. 

 

Shares of the company fell for the second day and have been range-bound since the latter part of July. The counter has risen 20 per cent this year, compared to a 3.6 per cent advance in the benchmark Nifty 50. Bharti Airtel has a total market capitalisation of ₹10.9 trillion.  Track LIVE Stock Market Updates Here

Airtel Q1 results 

The telecom reported a consolidated net profit of ₹5,947.9 crore in the first quarter of the financial year 2025 (Q1 FY26), marking a 43 per cent Y-o-Y jump from ₹4,159.9 crore in the same quarter last year.

 

However, on a sequential basis, the profit declined 46 per cent from ₹11,021.8 crore in Q4 FY25. The gain in the previous quarter was also attributed to an exceptional gain.

 

The company's revenue from operations stood at ₹49,462.6 crore in Q1 FY26, up 28.4 per cent Y-o-Y from ₹38,506.4 crore on account of strong performance in India and Africa. Sequentially, revenue was up 3.3 per cent from ₹47,876.2 crore in Q4 FY25. 

Analysts on Airtel earnings

Bharti Airtel posted another strong quarter, driven by an average revenue per user (ARPU) and 1.2 million net subscriber additions, according to Nuvama Institutional Equities. 

 

Airtel's industry-leading ARPU, stable subscriber growth, and strong free-cash flow (FCF) continue to strengthen its balance sheet and support higher shareholder returns, the brokerage said. 

 

Nuvama sees Airtel as the best play in Indian telecom, and has revised its FY26 and FY27 earnings per share (EPS) by (-) 7 per cent and (+) 4 per cent, respectively. It retained a ‘Buy’ rating with a raised target price of ₹2,200 (earlier ₹2,130).

 

Motilal Oswal remains positive on Bharti Airtel, citing its strong execution on premiumisation and the potential for improved free cash flow amid moderating capex intensity and the likelihood of further tariff hikes. The brokerage expects Bharti to generate around ₹1 trillion in FCF over FY26–27, supporting deleveraging and enhanced shareholder returns.

 

It noted that regular tariff hikes beyond FY27 will be key for further re-rating of the stock. Motilal Oswal has reiterated its 'Buy' rating with a higher target price of ₹2,285.

 

Analysts at Antique Stock Broking noted that another tariff hike in FY27 (likely in 1Q) will be the next earnings trigger, while lower wireless capex should drive record FCF and return on equity (RoE) above 20 per cent. The brokerage upped the target to ₹2,222 per share and reiterated a 'Buy' call.