Bharti Airtel Ltd. (BHARTIARTL) Brokerage Report and Analyst Expectations
Here’s a summary of recent analyst reports, price targets, and key insights for Bharti Airtel, based on recent brokerage activity:
Analyst ratings and price targets
- Overall Consensus: The majority of analysts (30 out of 33) maintain a “Buy” rating on Bharti Airtel, with two recommending a “Hold” and one a “Sell”.
- Average Target Price: The average 12-month target price among analysts is ₹2053.57, representing an upside potential of 10.99% from the last traded price of ₹1850.30. However, some sources cite slightly different averages, such as ₹2070.91.
- Target Range: Analyst price targets vary, with a low of ₹1325 and a high of ₹2500.
- Recent Activity:
- Macquarie raised its one-year price target to ₹2050.
- Axis Securities has an “OVERWEIGHT” rating with a target of ₹1900.
- JM Financial issued a “BUY” rating with a target of ₹2050.
- PL Capital maintains a “Buy” rating with a target of ₹2500.
- Motilal Oswal maintains a “Buy” rating with a target price of ₹910.
- DART maintains a “Buy” rating with a target price of ₹840.
Financial performance & expectations
- Q1 FY26 Earnings: Bharti Airtel reported a consolidated net profit of ₹5,947.90 Crore, a 43% increase year-over-year. Revenue saw a slight increase of 3.3%, reaching ₹49,463 Crore. EBITDA also increased by 3.1%, reaching ₹27,839 crore. The Average Revenue Per User (ARPU) stands at ₹250.
- Annual FY25 Performance: The company’s annual revenue increased to ₹172,985.20 Crore in March 2025, up from ₹149,982.40 Crore in the previous year. Net profit also saw a significant jump to ₹33,778.30 Crore from ₹5,848.60 Crore in March 2024.
- Return on Equity (ROE): The company delivered an ROE of 25.58% in the year ending March 31, 2025, outperforming its 5-year average of 8.59%.
- Growth Drivers:
- ARPU Gains: Airtel is focused on increasing its ARPU by encouraging customers to move to higher-priced data plans.
- Diversification: The company is expanding beyond traditional telecom services into digital services like OTT packs and enterprise solutions.
- 5G Rollout: Airtel is actively rolling out 5G services, adding approximately 25,000 new sites in FY25, and now has 135 million 5G customers. 5G-enabled devices account for 85% of total smartphone shipments.
- Rural Penetration: Expanding network coverage and offering affordable plans in rural areas is a key strategy for growth.
- Strong Financial Performance: Consistent revenue growth, improved return metrics, and disciplined capital expenditure contribute to a strong financial risk profile.
Key considerations
- Competition: The Indian telecom market is highly competitive, dominated by Bharti Airtel and Reliance Jio. While Airtel is gaining market share, Jio’s aggressive pricing strategy remains a challenge.
- Valuation: While Airtel’s superior return ratios and monetization strength justify a premium valuation, investors should be mindful of the stock’s current valuation, according to Mint.
- Airtel Africa: While Airtel Africa shows promising growth expectations and a high EBITDA/Sales ratio, the company has high debt and appears overvalued given its balance sheet size. The average price target for Airtel Africa among analysts is GBX 141.50, representing a potential downside of -33.63%.
In conclusion, brokerage reports on Bharti Airtel reflect a largely positive outlook, with analysts highlighting the company’s strong performance in India and Africa, efforts to boost ARPU, expansion into digital services, and robust 5G rollout. However, competition from rivals like Reliance Jio and the valuation of Airtel Africa remain key factors to consider.
PLEASE TAKE ADVICE FROM YOUR FINANCIAL ADVISOR: Investors should carefully evaluate their own risk tolerance and investment goals before making decisions regarding Airtel stock.