Telecom giant Bharti Airtel Ltd. shares closed over a percent higher on Wednesday, May 14, after reporting better-than-expected earnings for the three months ended March. The stock touched an intraday high of 4 percent before paring gains.
Bharti Airtel reported a sharp year-on-year surge of 432 percent in net profit for the fourth quarter, reaching Rs 11,022 crore. However, after excluding exceptional items, the adjusted profit stood at Rs 5,223 crore, marking a 77 percent rise. The firm's consolidated revenue rose 27 percent to Rs 47,876 crore in Q4FY25.
The firm's mobile ARPU (average revenue per user) increased to Rs 245 in Q4FY25 versus Rs 209 in Q4FY24 and remained unchanged compared to Q3FY25. Gopal Vittal, Vice Chairman and MD, said, "Growth was driven by premiumization. We added 6.6 million smartphone users and maintained an industry-leading ARPU of Rs 245."
It is important to note that Bharti Airtel’s Q4FY25 consolidated financials are not strictly comparable on QoQ and YoY basis, as Bharti Airtel consolidated Indus Towers from mid-November 2024.
At close, Bharti Airtel shares ended at Rs 1,840, higher by 1.04 percent on the NSE.
Should you buy, sell, or hold shares of Bharti Airtel?
International brokerage Morgan Stanley maintained its 'equal-weight' call, with a target price of Rs 1,870 per share. The brokerage noted that the India business, excluding Indus Towers, reported a beat, led by solid performancef in the Airtel Business segment.
CLSA also maintained its rating, keeping its 'outperform' call intact, with a target price of Rs 2,030 per share. It said Q4 consolidated revenue and EBITDA came in ahead of estimates, mainly driven by a strong performance in Africa. India mobile revenue and EBITDA rose 1–2 percent quarter-on-quarter and 21–30 percent year-on-year.
Domestic brokerage Motilal Oswal reissued its 'buy' call. However, the broking house is awaiting further details, following the firm's post-earnings call with analysts and experts.
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