Accumulate Bharti Airtel; target of Rs 1988 Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Bharti Airtel with a target price of Rs 1988 in its research report dated May 14, 2025.

Broker Research

May 15, 2025 / 15:27 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Bharti Airtel

Bharti reported consol EBITDA of Rs270bn (+39.5% YoY, +9.8% QoQ; PLe: Rs264bn, BBGe: Rs268bn). Adj PAT came in at Rs111.6bn (+146.6% YoY; +54.3% QoQ, PLe: Rs57.9bn, BBGe: Rs65.1bn), also aided by tax write back of Rs28.9bn. Previous quarter, 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. This quarter, tere was a loss of Rs1.4bnon account of settlement of erstwhile subsidiary in Africa. India mobile revenue stood at Rs266.2bn, +20.6% YoY and +1.3%QoQ with a stable EBITDA margin of 59.2%. ARPU remained flat QoQ at Rs245 with a net subscriber addition of 5mn in Q4. Enterprise revenue declined 3% YoY and 5.9% QoQ, with +7% and +12.7% growth in EBITDA. Home services (fixed line + broadband) rev witnessed growth of 21% YoY and 5.8% QoQ. Africa rev grew 22% YoY and 6.3% QoQ.

Outlook

We remain optimistic on the India business and continue to maintain ‘Accumulate’ rating with a TP of Rs1,988 based on 13x FY27 EV/EBITDA for India business and adding the value of its investments in Airtel Africa, Indus Towers and Bharti Hexacom.

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