Airtel’s Sunil Bharti Mittal lays out succession roadmap for Bharti, signals higher ARPU ambition: Report

Sunil Mittal expressed confidence that Airtel Money could evolve into a major financial services player within five to seven years, potentially comparable to Bajaj Financial Services

• Sunil Mittal outlines gradual succession plan for Bharti Group
• Airtel targets ARPU of Rs 350, up from current Rs 259
• Bharti to invest Rs 20,000 crore in Airtel Money and data centres

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Sunil Bharti Mittal, founder and chairman of Bharti Enterprises, has outlined a calibrated succession plan that will gradually bring the next generation of the Mittal family into greater prominence, Mint reported.

He indicated that family members would increasingly be seen "at the shareholders' table" over the coming years, pointing to a structured transition within the group.

Mint reported that Mittal said younger members of the family would be mentored by him, executive vice-chairman Gopal Vittal, and the senior leadership team as they prepare to take on larger responsibilities. The remarks provide the clearest signal yet on how succession planning is unfolding at the Bharti Group, balancing continuity with professional management oversight at one of India's largest telecom-led conglomerates.

Speaking during an investor call on 26 February, Mittal, who is approaching 70, said he still has "some years left" to contribute to Bharti Airtel and Bharti Enterprises, Mint reported. He described the grooming of the next generation as a "unique experiment" compared with other Indian promoter-driven businesses.

The family's younger members, he said, are building their own ventures outside the group structure, gaining experience through independent successes and failures before assuming larger roles.

Mint noted that Mittal has two sons and a daughter. Shravin Mittal founded London-based investment firm Unbound and serves as managing director of Bharti Global, the international investment arm of Bharti Enterprises. He spearheaded the group's investment in satellite communications company OneWeb. His twin brother, Kavin Mittal, launched messaging app Hike, which later pivoted to money gaming before shutting down last year following India's ban on money gaming. Their sister, Eisha, is described in media reports as a London-based lifestyle investor.

Mint further reported that Mittal addressed performance metrics at Bharti Airtel, India's second-largest telecom operator by market share. The company leads the industry in average revenue per user (ARPU), which stood at Rs 259 per month at the end of December. ARPU remains a critical indicator of telecom profitability, reflecting the revenue generated per customer.

While Airtel had previously targeted an ARPU of Rs 300 to ensure sustainable returns on capital employed, Mittal said the company is now recalibrating its ambition to Rs 350, adjusting for inflation and current market realities, Mint reported. He emphasised that entry-level pricing would remain affordable in India's price-sensitive market, but the company sees potential to upsell mid- and high-end users through better data offerings.

Heavy data consumers and enterprise users, Mittal argued, could reasonably pay Rs 80-160 more per month for premium, high-bandwidth services. By comparison, Airtel's ARPU of Rs 259 exceeds that of Reliance Jio, which stood at Rs 213.70, and Vodafone Idea, at Rs 172.

Beyond telecom, Mint reported that Mittal outlined a fresh growth phase for Airtel, including a Rs 20,000 crore investment in Airtel Money, the group's non-banking finance company (NBFC), and an aggressive expansion of AI-driven data centre capacity beyond 1 gigawatt. He also indicated that a progressive dividend policy is under consideration to enhance shareholder returns.

Mittal expressed confidence that Airtel Money could evolve into a major financial services player within five to seven years, potentially comparable to Bajaj Financial Services, according to Mint.

On competitive dynamics, Mittal downplayed concerns about government relief measures for Vodafone Idea. With the telecom market expanding at 8-10%, he said it would be difficult for any lagging player to significantly improve market share without capturing the bulk of incremental growth. Given Vodafone Idea's 14-15% revenue share and limited presence in several circles, regaining lost ground would be challenging, he suggested.

Analysts, however, remain cautious. Mint cited a note from BofA Securities flagging limited headroom for further tariff hikes if ARPUs approach steady-state levels, potentially constraining growth and valuations. The brokerage also questioned Bharti's long-term positioning in the data centre segment, noting that few global telecom operators have succeeded in that business. Some investors, it added, worry about a possible conglomerate discount due to diversification into NBFCs and data centres.

Responding to such concerns, Mittal said the group is not deploying billions of rupees into GPU procurement for resale as services. Instead, it is focusing on areas where it has operational expertise and long-term customer commitments, positioning these bets as sustainable over time, Mint reported.