Bharti Airtel surges 5% as Q3 results beat expectations; brokerages bullish

Bharti Airtel share price: Telecom operator Bharti Airtel shares were in demand on Friday, February 7, 2025, as the scrip rallied as much as 5.46 per cent to hit an intraday high of Rs 1,708 per share. The uptick in Bharti Airtel share price came after the company posted strong results in Q3FY25, which surpassed Street expectations across several key financial metrics.

 

The company’s consolidated profit skyrocketed 505.2 per cent year-on-year (Y-o-Y) to Rs 14,781.2 crore in Q3FY25 versus Rs 2,442.2 crore in the same quarter last year. The profit growth was driven by a one-time exceptional gain due to the consolidation of Indus Towers.  Alongside this, Bharti Airtel’s revenue climbed 19.1 per cent Y-o-Y to Rs 45,129.3 crore in Q3FY25, compared to Rs 37,899.5 crore in Q3FY24. 

 

 

A key highlight was the surge in Mobile Average Revenue Per User (ARPU), which rose to Rs 245 in Q3FY25, up from Rs 208 in Q3FY24. The boost was driven by a 23.2 per cent Y-o-y growth in mobile data consumption, with the average consumption per user reaching 24.5 GB per month. 

 

Analysts pointed to Bharti Airtel’s continued strength in the Indian wireless market, with superior ARPU, solid post-paid and G subscriber additions, and expanding margins contributing to the company’s growth.

 

ICICI Securities analysts noted that the company’s Q3 results were boosted by a robust performance from its Indian wireless business, marking a strong quarter. They highlighted that the key focus for Bharti Airtel will be the management’s commentary on future growth drivers, which will be critical in shaping expectations moving forward.

 

JM Financial, maintaining a ‘Buy’ rating with a target price of Rs 1,850, pointed to the company’s better-than-expected Q3 performance, driven by higher-than-expected Ebitda from the Indian wireless business and the consolidation of Indus Towers. 

 

They noted that Bharti Airtel’s solid ARPU growth, an addition of 6.5 million 4G/5G subscribers, and improvements in operating efficiency will likely continue to support the company’s growth. JM Financial believes that the company’s future will benefit from tariff hikes in India’s wireless market, which could drive Bharti Airtel’s free cash flow (FCF) and boost its equity value.

 

UBS reportedly maintained a ‘Neutral’ rating with a target of Rs 1,705, acknowledging that the results were broadly in-line with expectations. They noted that while Bharti Airtel outperformed Jio, the company’s focus on dividend growth was a key point of interest. UBS also highlighted the company’s performance in the home broadband segment, which was slightly ahead of estimates, although the high capex intensity remains a challenge.

 

According to reports, HSBC remained optimistic, noting that Q3 growth was driven by mobile and home broadband segments. They see Bharti Airtel as well-positioned to improve its Return on Invested Capital (ROIC) due to margin expansion and improving capital turnover. Moreover, HSBC is confident that the company’s key growth drivers—rising mobile ARPU, expanding home broadband subscribers, and increasing free cash flow—will continue to drive its performance.

 

Morgan Stanley, with an ‘Equal Weight’ rating and a target price of Rs 1,650, observed that the company’s India business revenue (excluding passive infrastructure) met expectations, according to reports. They also pointed to strong free cash flow generation and steady subscriber growth, noting that the ARPU growth in India’s mobile business, along with margin improvements, would likely sustain the company’s performance.

 

Meanwhile, Macquarie maintained a ‘Neutral’ rating, with a target price of Rs 1,710, reflecting the broader positive sentiment in the market.

 

At 10:43 AM, Bharti Airtel share price was trading 4.79 per cent higher at Rs 1,697.05 per share. In comparison, BSE Sensex was trading flat at 77,991 levels.