Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by digital expansion and strategic initiatives.
Basis of our Recommendation
Bharti Airtel is positioned for strong growth driven by ambitious revenue targets, strategic expansions in digital infrastructure, and a positive outlook on customer additions. The company is focused on enhancing its service offerings through premium products and digital solutions, while also benefiting from recent financial relief from a court ruling. However, there are moderate risks related to geopolitical tensions and concerns over capital allocation in its diversification efforts.
Why We Like This Stock
- Ambitious revenue growth targets driven by premiumisation and customer additions
- Expansion into digital infrastructure and financial services enhances growth potential
- Recent court ruling provides financial relief, positively impacting margins
Things To Watch Out For
- Geopolitical tensions may pose risks to international roaming revenue
- Concerns over capital allocation in diversification efforts into the NBFC sector
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 149,982 | 172,985 | 210,973 | 240,856 | 270,825 |
| Profit Before Tax (Cr.) | 20,031 | 24,650 | 48,591 | 56,324 | 65,607 |
| PBT Margin | 13.4% | 14.2% | 23.0% | 23.4% | 24.2% |
| Net Profit (Cr.) | 13,464 | 22,134 | 39,851 | 38,239 | 44,541 |
| EPS | 20.3 | 29.9 | 53.7 | 62.8 | 73.1 |
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.