Q3 results effect: Nykaa rises 7% as net profit more than doubles; Airtel up 2% as ARPU growth lifts margins, cash flow

Q3 Results impact on Bharti Airtel, Nykaa

• Bharti Airtel shares rose 2 percent after steady Q3 results and broker upgrades
• Nykaa shares rose 7%, reaching a new 52-week high after strong Q3 earnings.

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The shares of Bharti Airtel gained around 2 percent on February 6 as brokerages highlighted the telecom giant’s steady results for the October-December quarter of the ongoing financial year 2026. Nykaa shares meanwhile surged 7 percent.

Bharti Airtel shares rose to Rs 2,031.50 apiece on Friday. The shares of FSN E-Commerce Ventures, the parent-company of Nykaa, rallied to fresh 52-week high of Rs 275.97 apiece.

Bharti Airtel Q3 Results:

Bharti Airtel reported a consolidated net profit of Rs 6,631 crore for Q3 FY26, marking a 55 percent YoY fall from the Rs 14,781 crore net profit reported in Q3 FY25. This however includes exceptional items in both base quarter and quarter under review.

The telco's pre-tax profit before exceptional items rose 34 percent YoY to Rs 12,558.1 crore in Q3 FY26, from Rs 9,346.3 crore in Q3 FY25.

The firm's revenue from operations rose 20 percent YoY to Rs 53,981.6 crore during the quarter under review. The telco's ARPU rose to Rs 259 in Q3 FY26, from Rs 245 in Q3 FY25.

Motilal Oswal said that the company’s Q3 results were not strictly comparable on a YoY basis, as it consolidated Indus Towers (Indus) from mid-November 2024. “Overall, BHARTI reported a steady 3QFY26, with in-line performance in India and a better show by Airtel Africa,” it said.

“Homes continue to benefit from acceleration in subscriber additions, while the Enterprise segment’s margins remained elevated. Airtel Africa continued to report strong double-digit CC revenue and EBITDA growth, with a further boost from favorable FX movements. There was a significant miss on our PAT estimates due to higher interest expense and tax rate (Africa’s rising contribution to profitability). However, more importantly, BHARTI’s FCF generation improved further to INR169b (INR458b in 9MFY26), which led to ~INR140b reduction in net debt (excl. leases) amid steady capex trends in India business,” the domestic brokerage said.

Macquarie kept its ‘Outperform’ rating on the stock, with a target price of Rs 2,250 per share. This implies an upside potential of nearly 13 percent from the stock’s previous closing price The international brokerage said that the company’s third-quarter was operationally in line, supported by ARPU-led margin expansion and strong free cash flow.

Goldman Sachs raised its target price for the stocks to Rs 2,250 apiece from Rs 2,230 apiece, while keeping its ‘Buy’ rating. The international brokerage noted that the firm delivered a steady quarter with improving free cash flow, resilient wireless growth and easing capex intensity

ICICI Securities highlighted the company's resilient India wireless performance, steady ARPU growth, margin expansion and lower net debt on strong cash generation.

Jefferies kept its ‘Buy’ call on the stock, but reduced its target price to Rs 2,575 apiece from Rs 2,760 apiece. The latest target price implies an upside potential of more than 29 percent from the stock’s previous closing price. The international brokerage said that the firm’s third-quarter results were broadly in line, with profit growth driven by margin expansion, strong Africa performance and robust free cash flow.

Nykaa Q3 Results:

Nykaa reported a consolidated net profit of Rs 63 crore for Q3 FY26, marking a 142 percent YoY jump from Rs 26 crore net profit reported in Q3 FY25. The firm's revenue from operations rose 27 percent YoY to Rs 2,873.26 crore during the quarter under review.

HDFC Securities said that the firm’s strong top line growth was driven by healthy customer acquisition in BPC and fashion, successful Pink Friday sale and a strong performance in House of Nykaa BPC. “We largely maintain our FY27/28 EBITDA stimates and our SELL rating (given heady valuations; ~74x FY28 EV/EBITDA), with a DCF-based TP of INR 205/sh, implying 58x FY28 EV/EBITDA,” it said.

The latest target price implies a downside potential of nearly 21 percent from the stock’s previous closing price of Rs 258.29 apiece.

Jefferies kept a ‘Buy’ call on the stock, with a target price of Rs 315 apiece. This implies an upside potential of nearly 22 percent from the stock’s previous closing price. The international brokerage said that the company reported an exceptional result at a time when several firms across consumption categories have blamed tough macro, GST rollout and shift in festive season for a weak Q3 performance.

Goldman Sachs remained ‘Neutral’ on the stock, with a target price of Rs 240 per share. The international brokerage forecasts revenue growth at CAGR of 24 percent from FY26E to FY28E, encouraged by the firm's ability to fend off competition, partly due to its own timely pivot to quick deliveries.

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