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Bharti Airtel Limited — Q2 FY26
Bharti Airtel delivered another consistent quarter with consolidated revenues of approximately INR 52,000 crore and India EBITDA margin of 51.5%.
bullish
high
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
Bharti Airtel delivered another consistent quarter with consolidated revenues of approximately INR 52,000 crore and India EBITDA margin of 51.5%. Mobile segment added 1.4 million revenue-earning customers and 5.1 million smartphone data users, with postpaid net adds of 1 million. Broadband saw strong net adds of 951,000, with FWA customer base crossing 2.3 million. Airtel Business revenues grew 4.3% sequentially to INR 5,275 crore. The company is investing in data centers through Nextra, targeting over 1 GW capacity, and has partnered with Google for a facility in Vishakhapatnam. Management highlighted premiumization, convergence, and cross-selling as key growth drivers. Risks include elevated capex from home broadband and data center expansion, and potential competitive intensity in customer acquisition.
भारती एयरटेल का तिमाही प्रदर्शन मजबूत रहा। कंपनी ने करीब 52,000 करोड़ रुपये का कुल राजस्व कमाया और भारत में EBITDA मार्जिन 51.5% रहा। मोबाइल सेगमेंट में 14 लाख नए पैसे देने वाले ग्राहक जुड़े और 51 लाख स्मार्टफोन डेटा यूजर बढ़े। पोस्टपेड में 10 लाख नए ग्राहक आए। ब्रॉडबैंड में 9.51 लाख नए ग्राहक जुड़े और FWA ग्राहक 23 लाख पार हो गए। एयरटेल बिजनेस का राजस्व 4.3% बढ़कर 5,275 करोड़ रुपये हो गया। कंपनी डेटा सेंटर में निवेश कर रही है और गूगल के साथ विशाखापट्टनम में सुविधा बना रही है। प्रीमियम सेवाओं, कन्वर्जेंस और क्रॉस-सेलिंग पर फोकस है। जोखिमों में ब्रॉडबैंड और डेटा सेंटर पर ज्यादा खर्च और ग्राहक पाने में बढ़ती प्रतिस्पर्धा शामिल है।
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Elevated capex from home broadband and data centers
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Read Transcript →Quarter Snapshot
Mobile ARPU
INR 256
+1 day benefit
ARPU benefited from one extra day in the quarter and continued mix improvement.
5G Users
167M
N/A
5G users grew; 5G sites handle over 40% of total network traffic.
FWA Customers
2.3M
N/A
Fixed wireless access customer base crossed 2.3 million, driving broadband growth.
Payments Bank MTU
104M
+19% YoY
Monthly transacting users crossed 104 million; annualized run rate over INR 3,200 crore.
What Changed vs Last Quarter
NEW
Data center capacity target of over 1 GW
Airtel aims to scale Nextra's capacity to over 1 GW in the next few years, a four-fold increase from current operating capacity, driven by the Google partnership and organic expansion.
NEW
Home broadband industry to reach 100 million homes in 5-6 years
Management expects the home broadband market to grow from ~50 million to 100 million connected homes over the medium term, with Airtel investing aggressively to capture share.
NEW
Capex to moderate directionally over time
While near-term capex may be elevated due to home broadband and data center investments, management expects a directional decline in capex as a percentage of revenue over the medium term.
DROPPED
Fiber home pass run rate target of 2.5 million per quarter
Management aims to increase quarterly fiber home pass additions from 1.6 million to 2.5 million.
DROPPED
B2B underlying growth to continue with strong funnel
Underlying B2B revenue grew 2% QoQ after exiting low-margin business; order book and funnel remain strong.
DROPPED
CapEx to trend down in wireless, modular in cloud
Radio CapEx is declining; cloud CapEx is modular with two regions operational and headroom available.
DROPPED
Dividend to increase over time
Management reiterated commitment to step up dividends as leverage declines.
NEW RISK
Elevated capex from home broadband and data centers
Accelerated home pass rollout and data center investments could keep capex elevated, potentially impacting free cash flow and leverage targets.
NEW RISK
Competitive intensity in customer acquisition
Management noted that quality of acquisition has deteriorated due to high commissions and churn, which could pressure ARPU and margins if not managed.
NEW RISK
Data center overcapacity risk
Analyst raised concern about multiple data center announcements potentially leading to oversupply; management acknowledged but expressed confidence in demand.
RISK GONE
AGR payment uncertainty
Airtel has requested government relief on AGR payments; outcome could impact cash flows.
RISK GONE
Competitive intensity in B2B adjacencies
Cloud, security, and IoT markets are crowded with multiple players; margin pressure possible.
RISK GONE
Broadband churn due to transport hygiene issues
Management acknowledged churn is not satisfactory and is working on improving transport infrastructure.
RISK GONE
Roaming revenue volatility in Hexacom
Roaming revenue dropped due to geopolitical tensions affecting travel; impact on reported revenue.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q3 FY25, Q4 FY25
Management guided that total CapEx will trend downwards in FY26, driven by substantially lower rural rollout and moderation in radio CapEx.
Mentioned in Q1 FY25, Q2 FY25
Management expects the full impact of the recent tariff increase to be reflected in the coming quarters, with normalization of customer trends already seen in October.
Fast read
Guidance and risk preview
Airtel aims to scale Nextra's capacity to over 1 GW in the next few years, a four-fold increase from current operating capacity, driven by the Goog...
Accelerated home pass rollout and data center investments could keep capex elevated, potentially impacting free cash flow and leverage targets.
View Risks →