DINESH

Bharti Airtel

Industry: Telecom
Latest CMP 1,992
Today's Change ▲ 2.73%
52-Week High / Low 2,136 | 1,735
Price Date: 14-Aug-2026
Recommendation Strong Buy
Target Price 2,607
Expected Upside 14.4%
Forecast Horizon 2 Years
Historical CAGR 12.2%
1,000 Invested 17-Aug-2006
Today's Value 10,085
Investment Period 20 Years

Stock Snapshot

Post Results Return
+2.2%
Neutral Market Reaction
1-Year Target Price
2,481
2-Year Target Price
2,607
52-Week High / Low
2,136 / 1,735
20-Day Return
+4.0%
Market Cap (Cr.)
1,213,906
Current PE
35.7
P/BV Ratio
8.1
Dividend Yield
0.6%
Industry PE
45.4

Price Performance

Basis of our Recommendation

Bharti Airtel's recent management commentary highlights a strategic pivot towards premiumization and disciplined capital allocation, particularly in its mobile and digital services segments. The company's focus on high-quality growth, evidenced by its shift in home broadband strategy and aggressive expansion of data center capacity, positions it well for sustained revenue growth. Vista's financial outlook reflects a moderate revenue growth trajectory, supported by anticipated tariff hikes and a strong performance in non-mobile segments. Despite facing competitive pressures and potential margin dilution from digital service expansion, the overall outlook remains positive, with expected upside driven by robust free cash flow generation and a clear path to net-debt reduction. Industry dynamics, including improving pricing power and a stable demand environment, further bolster this outlook. Over the next 12-24 months, key opportunities include scaling the Nxtra data center business and capturing growth in the enterprise segment, while watchpoints include managing inflationary cost pressures and maintaining subscriber momentum in a competitive landscape

👍 Why We Like This Stock

  • Strong focus on premiumization and high-value customer segments enhances revenue stability
  • Aggressive expansion in data centers and digital services positions the company for long-term growth
  • Robust free cash flow generation supports capital allocation and net-debt reduction

Things To Watch Out For

  • Competitive pressures in the home broadband segment may impact margins
  • Potential margin dilution from the increasing mix of digital services poses risks
  • Execution risks related to regulatory shifts and inflationary cost pressures could affect performance

Key Parameters

Balance Sheet Strength
Weak Cash Conversion
Market Share
Gaining
Industry Outlook
Improving
Analyst View
Strong Buy
Dividend History
Consistent
FII Holdings
Reducing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 149,982 172,985 210,973 223,759 249,333
Profit Before Tax (Cr.) 20,031 24,650 48,591 62,275 67,861
PBT Margin 13.4% 14.2% 2303.2% 27.8% 27.2%
Net Profit (Cr.) 13,464 22,134 39,851 51,488 46,071
Earnings Per Share 20.3 29.9 53.7 69.4 75.6

Analyst Recommendations

Broker Recommendation Target Price Date
Axis Securities ▲ Buy 2,530 15-May-2026
Bernstein ▲ Outperform 2,150 29-Jul-2026
CLSA ▲ Outperform 2,330 05-Aug-2026
Citigroup ▲ Buy 2,230 13-Aug-2026
Emkay Global ▼ Reduce 2,000 06-Aug-2026
HSBC ▲ Buy 2,500 13-Aug-2026
ICICI Securities ▲ Buy 2,410 06-Aug-2026
JPMorgan ▲ Buy 2,300 14-May-2026
Jeffries ▲ Buy 2,360 05-Aug-2026
Kotak Securities ▲ Buy 2,330 13-Aug-2026
Macguire ▲ Outperform 2,220 05-Aug-2026
Moneycontrol ► Equalweight 2,213 05-Aug-2026
Morgan Stanley ▲ Overweight 2,442 13-Aug-2026
Motilal Oswal ▲ Buy 2,335 06-Aug-2026
Prabhudas Liladhar ▲ Buy 2,275 06-Aug-2026
UBS ▼ Reduce 1,800 09-Jun-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 2,290
Coverage 16 Analysts
Analysts' Viewpoint
Bharti Airtel's strategic focus on premiumization and tariff hikes supports a strong growth outlook, with significant opportunities in digital infrastructure, including data centers and cloud services. The company's disciplined capital allocation and robust free cash flow generation underpin its deleveraging efforts. However, challenges such as competitive pressures, rising hardware costs, and execution risks in scaling new business segments like data centers and financial services present potential headwinds. Upcoming tariff hikes and data center expansions are key catalysts for future growth.

Company Overview

Show Company Profile

Bharti Airtel Limited operates as a telecommunications company in India and internationally. It operates through the Mobile Services India, Mobile Services Africa, Mobile Services South Asia, Airtel Business, Passive Tower Infrastructure Services, Homes Services, Digital TV Services, and Others segments. The company provides voice and data telecom services through wireless technology including 2G/3G/4G/5G services; passive infrastructure service, including the setup, operation, and maintenance of wireless communication towers; home services covering voice and data communications through fixed-line network, wireless network, and broadband technology for homes; and digital TV services comprising digital broadcasting services under the DTH platform and IPTV services. It also engages in the airtel business that includes network integration, managed services, CPaaS, PaaS, cloud, cybersecurity, IoT, and data center services, as well as enterprise mobility applications. In addition, the company offers post-paid, prepaid, roaming, internet, and various value-added services, as well as mobile TV, video calls, live-streaming videos, gaming, video streaming, and other services. The company was formerly known as Bharti Tele-Ventures Limited and changed its name to Bharti Airtel Limited in April 2006. Bharti Airtel Limited was incorporated in 1995 and is headquartered in New Delhi, India.