Accumulate Bharti Airtel; target of Rs 1827: Prabhudas Lilladher

Accumulate

Prabhudas Lilladher's research report on Bharti Airtel

Bharti reported consol EBITDA of Rs245.9bn (up 12.6%QoQ; PLe: Rs230.6bn, BBGe: Rs237.4bn). Adj PAT came in at Rs72.3bn (up 62.7%QoQ; PLe: Rs48.6bn, BBGe: Rs50.2bn). There was an exceptional gain of Rs75.5bn primarily due to consolidation of Indus Towers and lower tax rate due to recognition of deferred tax asset on unrecognized losses. India mobile revenues were up 5.8%QoQ with a stable EBITDA margin of 59.8%. ARPU improved QoQ to Rs245 with a net subscriber addition of 4.95mn in Q3. Enterprise revenue remained flat QoQ, with 1.8% de-growth in EBITDA. Home services (fixed line + broadband) had an ARPU decline of 2.1%. DTH ARPU grew marginall QoQ. Africa mobile Revenue grew 4.4% QoQ.

Outlook

We remain optimistic on the India business and continue to maintain ‘Accumulate’ rating with a TP of Rs1,827 based on 14x FY27 EV/EBITDA for India mobile business, Enterprise segment at 7x FY27 EV/EBITDA, 3x FY27 EV/EBITDA for DTH, 3x FY27 EV/EBITDA for Home Services, and adding the value of its investments in Airtel Africa, Indus Towers and Bharti Hexacom.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Bharti Airtel - 11022025 - prabhu