Bharti Airtel restores ₹299 plan as Citi raises target

Bharti Airtel Limited (NSE: BHARTIARTL) has reinstated its ₹299 prepaid plan, three months after withdrawing it. Citi has retained its Buy rating and raised its price target to ₹2,390 from ₹2,230, implying around 15% upside. The tariff reversal comes after rival telecom operators chose not to follow Airtel's earlier pricing move. Citi believes this makes it difficult for individual operators to sustain tariff increases without wider industry participation. Q2FY27 numbers were encouraging. Consolidated revenue increased 4% QoQ to ₹60,877.5 crore, ahead of the estimated 2.5% growth. EBITDA margin improved 50 bps to 57.4%, while net profit rose 8.8% QoQ to ₹8,887.5 crore. India mobile revenue grew 3.4% to ₹30,943.1 crore. ARPU improved 2.7% to ₹271 from ₹264, supporting the premiumisation strategy. However, net subscriber additions dropped sharply to 7.16 lakh from 32.65 lakh in the previous quarter. Monthly churn also increased to 2.9%. My view: The earnings performance remains healthy, with improving ARPU, margins and profitability. However, the subscriber data deserves attention. Airtel's ability to grow revenue through higher-value customers is encouraging, but weaker additions and rising churn could limit growth if premiumisation cannot compensate for volume pressure. The ₹299 plan's reinstatement also suggests that pricing power remains dependent on industry-wide tariff discipline. Going forward, I would watch ARPU growth, subscriber additions and churn in the coming quarters. Citi's revised ₹2,390 target reflects its positive earnings outlook, but sustained growth in subscriber metrics will be important to support further upside. BHARTIARTL Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.