Buy Bharti Airtel; target of Rs 1815: Geojit Financial Services

Buy

Geojit Financial Services research report on Bharti Airtel

Bharti Airtel Ltd (Airtel) is a leading global telecommunications company with operations in 15 countries, including Asia and Africa, and ~577mn customers as of Q3FY25. Consolidated revenue grew 19.1% YoY to Rs. 45,129cr in Q3FY25, led by growth in revenue from India, constant currency growth in Africa, and the consolidation of Indus Tower Ltd with effect from November 2024. Revenue from India increased 24.6% YoY to Rs. 34,654cr, driven by growth in Mobile services (+21.4% YoY), along with the impact of tariff repair in the segment and strong growth in Home businesses (+18.7% YoY). Revenue of Airtel business and Passive Infrastructure Services increased 8.7% YoY and 5.7% YoY, while the digital TV revenue was down 2.9% YoY. Average revenue per user (ARPU) was reported at Rs. 245 in Q3FY25 compared with Rs. 208 in Q3FY24. EBITDA rose 21.4% YoY to Rs. 24,597cr in Q3FY25, aided by higher topline and drop in other expenses. Thus, EBITDA margin improved 110bps YoY to 54.5%. Reported Profit After Tax (PAT) increased 460.9% YoY to Rs. 16,135cr.

Outlook

Hence, we reiterate our BUY rating on the stock, with a rolled-forward target price of Rs. 1,815 based on the Sum Of The Parts (SOTP) methodology.

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Bharti Airtel -10032025 - geo