Bharti Airtel Hits Record High on Strong Q2 Results, Analyst Confidence Grows

Bharti Airtel's stock price reached a record high of ₹2,135.60 on Tuesday, November 4, marking its second consecutive day of gains and making it the top performer on the Nifty 50 index. This surge was fueled by the company's better-than-expected performance in the September quarter, which saw its consolidated revenue grow by 5.4%, surpassing the estimated 3.1%. Revenue from India operations also showed robust growth at 2.6% against an expected 2.2%. The company reported an expansion in consolidated EBITDA margins by 40 basis points sequentially to 56.7%. Average revenue per user (ARPU) stood at ₹256, complemented by a net addition of 1.4 million subscribers quarter-on-quarter.

Impact Brokerage firms have maintained a positive outlook on Bharti Airtel following these results. Jefferies reiterated its 'Buy' rating with a ₹2,635 price target, highlighting a broad-based earnings beat and strong growth prospects driven by subscriber premiumisation and improved monetization. CLSA maintained an 'Outperform' rating with a ₹2,285 target, and Citi retained its 'Buy' call at ₹2,225, both citing steady second-quarter performance. Currently, 25 out of 32 analysts tracking Bharti Airtel recommend a 'Buy' rating.

Terms: ARPU (Average Revenue Per User): The average revenue generated by the company from each of its users over a specific period. EBITDA Margins: Earnings Before Interest, Taxes, Depreciation, and Amortization margins, which represent a company's operating profitability as a percentage of revenue. Basis Points: A unit of measure equal to one-hundredth of one percent (0.01%). Premiumisation: The trend where customers opt for higher-priced, premium versions of products or services. Monetisation: The process of converting an asset or revenue stream into money.

Impact Rating: 8/10