Feb'25 View on Bharti Airtel Ltd

Bharti Airtel Ltd is one of the world’s leading providers of telecommunication services with presence in 18 countries representing India, Sri Lanka, 14 countries in Africa. The Stock is poised to cross from 164o to above 1,800 levels on following positive inputs. • The wireless segment saw subscribers increase in Q3FY25 (+49 lakh), which came in ahead of ~33 lakh subscriber additions by Jio. • India wireless ARPU of Rs245 (+5.3% qoq) led by pass-through effect of a ~13- 14% tariff hike in Q2FY25, better than Jio’s ARPU of Rs203 (+4.2% qoq). • Tariff improvement provides comfort in company’s ability to increase margins. • The India wireless EBITDA margin improved ~180 bps qoq to 58.8%. • Delivered a robust performance in India business (EBITDA up 24% yoy). • With pan-India 5G rollout complete, India wireless capex continues to moderate (down 32% yoy), aiding FCF. • We build in ~18% 3-year consolidated EBITDA, led by tariff hikes & subscriber mix improvements in India wireless & further ramp-up in homes broadband.