BHARTIARTL

Robust Execution Continues in Q1FY26

-> Q1 FY26 Performance:

reported a steady quarter with a 28.5% YoY and 3.3% QoQ increase in consolidated revenue to ₹49,463 crore, though it missed analyst estimates. Net profit was ₹5,948 crore, up 43% YoY, but not directly comparable to the previous year due to the change in Indus Towers' status. Sequentially, net profit declined 46% due to a one-time deferred tax benefit in the previous quarter. -> India Mobile Business: The core India mobile business, contributing 55% of total revenue, grew 2.9% sequentially. This was driven by a continued focus on portfolio premiumization, with the company adding 4 million smartphone data customers. Airtel's Average Revenue Per User (ARPU) rose sequentially by 2% to an industry-leading ₹250. However, the company added fewer mobile users in the quarter compared to the previous one. -> Strategic Shifts & Challenges: Airtel is operating in a market moving towards a duopoly, with it and Jio gaining market share. To maintain its lead, the company is focused on premium services. The Airtel Business segment saw a decline in revenue due to a portfolio restructuring that involved exiting low-margin voice and messaging businesses, though the underlying growth trajectory remains steady. -> Investments & Financials: The company's balance sheet remains strong, supported by disciplined capital allocation and solid cash flow. Net debt decreased sequentially. Capex for the quarter was ₹8,307 crore. Airtel is also expanding its Homes business, with significant customer additions in its Fixed Wireless Access (FWA) network, which is a key growth area. -> Other Highlights: The company's Homes business, which includes home Wi-Fi and broadband, saw revenue grow by 25.7% YoY. It added a significant number of FWA customers, bringing its total customer base to 11 million.