Bharti Airtel beats Q1 revenue estimates as premium users drive growth | Stock Market News

New Delhi: Bharti Airtel Ltd, India's second-largest telecom operator, reported June-quarter revenue that beat analyst estimates but missed profit expectations, as robust growth in its premium mobile, enterprise, home broadband and Africa businesses was partly offset by higher depreciation and tax expenses and a one-time ₹353 crore charge at its Africa unit.

Consolidated revenue from operations rose 18.4% year-on-year (y-o-y) to ₹58,539 crore, above Bloomberg’s estimate of ₹56,896 crore, while net profit increased 37.3% to ₹8,167 crore, but fell short of the ₹8,699 crore consensus estimate.

The Gurugram-based company’s Ebitda (earnings before interest, tax, depreciation and amortisation) rose 19.3% y-o-y to ₹33,599 crore, beating estimates of ₹32,510 crore, which the company attributed to higher revenue growth.

“We delivered yet another quarter of strong performance, supported by the resilience of our diversified portfolio and sharp execution across businesses,” said Gopal Vittal, executive vice chairman of Bharti Airtel. “India Mobile achieved sequential growth of 3.8%, driven by continued portfolio mix improvement. Our postpaid strategy continues to deliver strong outcomes with highest ever customer additions of 1 million.”

The results from the second-largest telecom operator have come at a time when Jio Platforms Ltd, parent of telecom operator Reliance Jio Infocomm Ltd, is preparing to list on the stock exchanges. Both Airtel and Jio have completed a major 5G network rollout but are currently finding it hard to monetize 5G in absence of compelling consumer use cases.

Shares of Bharti Airtel ended 0.8% lower at ₹1,955.10 on the National Stock Exchange (NSE) on Tuesday, while the benchmark Nifty 50 fell 0.64%. The results were announced after market hours.

Average revenue per user (Arpu) rose 2.7% quarter-on-quarter to ₹264 a month from ₹257. In comparison, the Arpu of rival Reliance Jio—India’s biggest telco—in Q1 rose marginally to ₹215.6 a month from ₹214 at the end of March.

Analysts at Axis Capital said in a 27 July note that Airtel continues to view portfolio premiumization as a key growth lever through postpaid upgrades, migration from 2G to 4G/5G, higher international roaming usage and data monetization.

Airtel’s postpaid customer base rose to 30 million during the quarter from 29 million in the preceding quarter, continuing a strategy that analysts say should support profitability. CLSA said in a 1 July note that Airtel’s postpaid tariffs are roughly 70% higher than prepaid tariffs, meaning a larger postpaid mix should lift blended Arpu.

To improve returns on its 5G investments, Airtel is betting on premium postpaid customers and the fixed wireless access (FWA) home broadband business.

During the quarter, Airtel launched Postpaid Fast Lane technology on 5G slicing, which it said has received encouraging signs in the market.

“For Airtel, this whole plan of going premium has gone well. One way for that to happen was to focus on postpaid, which could give them higher Arpu. Now, 5G slicing as a possibility, can also give them an opportunity to create high paying cohorts, thereby creating room for 5G monetization,” said Faisal Kawoosa, chief analyst at Techarc, a technology analytics, research and consulting firm.

The quarter’s performance was broad-based across Airtel’s businesses, with India mobile remaining the biggest contributor while enterprise, home broadband and Africa also delivered strong gains.

Mobile services India business, which contributes over 51% to Airtel’s topline, witnessed a 9.2% y-o-y increase to ₹29,929 crore.

Airtel Business, which houses the enterprise connectivity solutions including data centres, cloud and internet of things (IoT) solutions, saw a 12% y-o-y in revenue to ₹5,665 crore. The company said the growth in the segment was supported by connectivity solutions and sustained strong momentum across the digital services portfolio.

The telecom operator’s home business, which includes FTTH broadband connectivity and FWA, reported a growth of 33% y-o-y to ₹2,288 crore. During the quarter, Airtel, however, added 473,000 customers in the segment, compared to 1.1 million in the preceding quarter, taking the total homes customer base to 14.7 million as of June end.

Meanwhile, Airtel has also been benefiting from growth in its Africa business. In the June quarter, Airtel Africa reported a 31% on-year growth in revenue to $1.85 billion. Net profit grew 27% on-year to $198 million, which was affected by derivative and foreign exchange losses and recognition of one-time finance cost.

Jatin is based in New Delhi and writes on telecom and technology with a keen interest in policy and regulation. With over five years of reporting experience across Informist Media, Financial Express and now Mint, he has extensively covered the telecom, information technology, electronics and semiconductor sectors.<br><br>A commerce graduate, Jatin's work focuses on tracking industry developments, regulatory changes and policy decisions that shape India’s evolving digital ecosystem. Over the years, he has reported on key trends and shifts across these sectors, bringing clarity to complex policy and business issues.<br><br>Known for his strong news sense, Jatin focuses on breaking stories and delivering in-depth reporting that offers readers an understanding of complex topics, policy decisions and corporate developments. His work often examines the intersection of policy and business, highlighting how regulatory decisions impact industry strategy, pricing, and consumer outcomes.<br><br>He brings a strong domain understanding for Mint and his work is widely picked up by other media firms. With a focus on accuracy and depth, he aims to break down developments into clear, accessible insights for readers, while continuing to track emerging trends shaping the future of India’s telecom and technology sectors.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.