Bharti Airtel (BHARTIARTL) Q1 25/26 earnings summary

Executive summary

• Revenue for Q1 FY26 was ₹494,626 million, up 28% year-over-year and 3% sequentially; EBITDAL margin at 47.7%, up 110 bps sequentially.

• Net profit attributable to owners was ₹59,479 million, a 43% increase year-over-year; total comprehensive income was ₹78,203 million.

• Net adds: 17,000 mobile, 54,000 homes, and 283,000 Spark 4 customers; ARPU at INR 246, aided by mix improvement and an extra day in the quarter.

• Operating free cash generation was INR 854 crore; balance sheet robust with net debt/EBITDAL at 0.7x.

• Focused on digital tools for customer experience, including anti-spam solutions and leveraging partnerships for digital content and AI offerings.

Financial highlights

• EBITDA for the quarter was ₹283,475 million, up from ₹200,711 million in Q1 FY25; operating margin improved to 31.1% from 23.8% year-over-year.

• EBITDAL: INR 1,079 crore, margin 47.7%, up 110 bps sequentially.

• Operating free cash flow: INR 854 crore.

• Net profit margin rose to 15.0% from 12.3% year-over-year; basic EPS was ₹10.26.

• Net debt (ex-leases): INR 2,806 crore; net debt/EBITDAL at 0.7x.

Outlook and guidance

• Home business momentum expected to continue; CapEx intensity to marginally unwind as rural acceleration slows.

• Dividend expected to increase directionally, with surplus funds likely as debt reduces.

• Management continues to monitor the financial condition of a major customer impacting receivables and asset recoverability.

• The company expects continued support from the Department of Telecommunications and ongoing funding efforts for the customer in question.