Bharti Airtel Q2 Net Profit Jumps 31% to ₹8,888 Cr as India Mobile ARPU Reaches ₹271

Bharti Airtel announced an audited consolidated net profit attributable to shareholders of ₹8,887.5 crore for the second quarter ended September 30, 2026, marking a 30.9% year-on-year increase. Consolidated revenue from operations advanced 16.7% YoY to ₹60,877.5 crore, propelled by higher mobile tariffs in India and consistent subscriber additions across enterprise and home broadband segments.

What Happened

The telecom major delivered an EBITDA of ₹35,239.5 crore, up 17.8% YoY, with consolidated EBITDA margin expanding 54 basis points to 57.88%. Core India business revenue reached ₹42,308 crore, rising 9.4% YoY. Monthly Average Revenue Per User (ARPU) in the India mobile division expanded to ₹271 from ₹256 in Q2 FY26 and ₹264 in Q1 FY27, reflecting successful conversion of prepaid subscribers into higher-tier bundled 5G data plans. Total global customer base expanded 7.0% YoY to 693 million across operations in India and 14 African nations.

Q2 FY27 Financial & Subscriber Snapshot

Sequential quarter-on-quarter earnings showed steady momentum, with consolidated revenues advancing 4.0% from ₹58,539 crore in Q1 FY27 and net profit increasing approximately 9.0%.

Sector Context & Earnings Quality

India's telecom landscape has consolidated into an effective duopoly with asymmetric monetization advantages. Airtel continues to command the highest quality subscriber base, evidenced by its ₹271 ARPU, which maintains a substantial premium over rival Reliance Jio's ₹218.80. The company added 4.2 million 4G and 5G data customers during the quarter, bringing its total high-speed mobile data base to over 275 million in India. Airtel Business and Homes broadband also registered double-digit growth, providing diversified cash streams that reduce dependence on pure mobile voice revenue.

Independent TradeKaizen Analysis & Key Risks

TradeKaizen Analysis: Bharti Airtel's compounding financial profile reflects the rewards of disciplined capital allocation. Rather than engaging in predatory subscriber acquisition wars, the operator has systematically targeted post-paid and premium family plans where churn is negligible. With mobile ARPU reaching ₹271, the company is rapidly closing in on its stated medium-term target of ₹300 per user. Because 5G radio network buildouts have largely passed peak capital intensity, free cash flow generation is accelerating, enabling regular deleveraging of foreign currency and spectrum liabilities.

Key risks include adverse foreign exchange fluctuations across African subsidiaries (notably the Nigerian Naira), potential delays in consumer willingness to absorb future tariff revisions, and AGR license fee disputes pending before legal authorities.

Disclaimer: This report is for informational purposes only and does not constitute investment advice.