Bharti Airtel (BHARTIARTL) Q3 24/25 earnings summary

Executive summary

• Announced transfer of 3,400 telecom towers to Indus Towers to enhance operational and financial efficiency, freeing up management bandwidth and expected to create long-term value.

• Consolidated revenue from operations for Q3 FY25 was Rs. 451,293 million, up from Rs. 414,733 million in the previous quarter and Rs. 378,995 million in Q3 FY24.

• Profit for the period attributable to owners was Rs. 147,812 million, a significant increase from Rs. 24,422 million in Q3 FY24.

• Achieved industry-leading ARPU growth of 5.7% to INR 241 and robust net customer additions.

• Exceptional gain of Rs. 75,456 million in Q3 FY25, mainly from the business combination of Indus Towers and related fair value adjustments.

Financial highlights

• EBITDA for Q3 FY25 stood at Rs. 250,663 million, up from Rs. 202,546 million in Q3 FY24.

• EBITDA margin for the quarter was 53%, up nearly 300 bps.

• Net profit margin for Q3 FY25 was 35.8%, compared to 7.6% in Q3 FY24.

• Basic EPS for Q3 FY25 was Rs. 25.54, up from Rs. 4.27 in Q3 FY24.

• Net income reached INR 261 crores; operating free cash flow (EBITDA minus CapEx) was INR 758 crores.

Outlook and guidance

• Indus Towers has been consolidated from November 19, 2024, impacting comparability of results.

• FWA rollout will require additional CapEx due to higher CPE costs, but overall CapEx increase expected to be marginal.

• Dividend payout is under positive consideration given strong cash generation and low leverage.

• Management continues to monitor the financial condition of a major customer of Indus Towers, with necessary provisioning done.