Buy Bharti Airtel; target of Rs 1925: ICICI Securities

BUY

ICICI Securities's research report on Bharti Airtel

Bharti Airtel (Bharti) delivered another strong quarter with an improvement in its key focus criteria, mainly: 1) AGR market share win with Bharti continuing to narrow the gap vs. RJio. 2) Higher incremental EBITDA margin, and profits growing faster. 3) Disciplined capital allocation with tight control on capex. The company has been calibrated on capex into spectrum, SA- 5G, FWA, and allied service. 4) Capital structure with continuously reducing debt/leverage. Apart from mobile services, the company has intensified penetration for fixed broadband, using both fibre and FWA; rising adoption of convergence, and digital services within B2B business including cloud, security, IOT, and CPaaS. Bharti has exhibited good discipline in capex, as guided – with capex being lower than FY24; it guided for a further drop in FY26, largely from a slowing in radio deployment.

Outlook

which has altered EPS. Our SoTP-based TP is revised to INR 1,925 (from INR 1,875) as we raise India EV/EBITDA multiple to 13x (from 12.5x). Maintain BUY. Key risks: 1) Market share loss in India mobile business, and 2) rise in competitive and regulatory intensities.

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Bharti Airtel_10022025_ICICI Securities