Bharti Airtel Limited reported a consolidated net profit of ₹100,116 million for the first quarter ended June 30, 2026, marking a 35% year-on-year increase from ₹74,218 million in Q1FY25. This growth underscores the company’s expanding operational scale and margin resilience despite rising finance costs. Consolidated revenue from operations rose 18% YoY to ₹585,391 million, driven by double-digit growth across key segments including Mobile Services India and Mobile Services Africa. The results were approved by the Board of Directors on August 4, 2026, following review by the Audit Committee.

The financial statements were audited by Deloitte Haskins & Sells LLP in compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The auditor confirmed that the results present a true and fair view in conformity with Ind AS 34. Notably, the Group recognized an exceptional charge of ₹3,534 million during the quarter due to a provision for the in-principle settlement of a commercial dispute in one of its African subsidiaries. Additionally, Bharti Airtel completed a composite transaction involving the issuance of 146,761,335 equity shares to Indian Continental Investment Limited (ICIL) at ₹1,923 per share, amounting to ₹282,222 million. This share swap increased the Group’s effective stake in Airtel Africa Plc from 62.62% to 78.93%, which further rose to 79.11% following Airtel Africa’s share buy-back program.

Segment Performance

Mobile Services India remained the largest revenue contributor, generating ₹299,289 million, up from ₹273,966 million in Q1FY25. The segment delivered a profit before finance costs, charity, donations, exceptional items, and tax of ₹99,556 million. Mobile Services Africa saw robust growth, with revenue jumping to ₹175,657 million from ₹120,831 million in the prior year period, reflecting expanded market presence and mobile money services. Airtel Business revenue reached ₹56,654 million, while Passive Infrastructure Services, operated through Indus Tower Limited, contributed ₹85,254 million.

What the Numbers Show

The divergence between top-line growth and bottom-line expansion highlights improved operating leverage. While revenue grew 18% YoY, net profit surged 35%, indicating that cost controls and operational efficiencies are outpacing expense inflation. Network operating expenses rose 13% to ₹108,097 million, and employee benefits increased 25% to ₹21,776 million, yet these were more than offset by higher average revenue per user and scale benefits. Furthermore, the significant rise in Mobile Services Africa revenue—driven by both organic growth and consolidation effects from the ICIL deal—demonstrates the strategic value of deepening control over international assets. The exceptional charge of ₹3,534 million did not derail profitability, suggesting underlying operational strength remains intact.

Bharti Airtel reported a 35.5% year-on-year increase in consolidated net income (before exceptional items) to ₹8,057 crore for the quarter ended June 30, 2026, driven by robust revenue growth across its India and Africa operations. Consolidated revenues rose 18.4% to ₹58,539 crore, reflecting sustained momentum in mobile services, homes broadband, and enterprise solutions. The company also completed an EPS-accretive share swap transaction with Indian Continental Investment Limited (ICIL), increasing its effective stake in Airtel Africa Plc from 62.62% to over 79%, reinforcing its long-term growth conviction in the African market. The financial results were reviewed by the Audit Committee and approved by the Board of Directors on August 4, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Deloitte Haskins & Sells LLP served as the independent auditor for the interim consolidated and standalone financial statements prepared under Ind AS 34.

Financial Performance

Consolidated EBITDA came in at ₹334.1 billion for the quarter, compared to ₹315 billion in the previous quarter (QoQ), surpassing the street estimate of ₹326 billion. The EBITDA margin stood at 57.07%, marginally higher than 57.01% in the prior quarter and broadly in line with the estimate of 57.1%. On a year-on-year basis, EBITDA grew 19.3% to ₹33,599 crore, with margins expanding to 57.4% from 56.9% in the corresponding quarter last year. Earnings before interest and tax (EBIT) rose 23.4% to ₹19,282 crore, delivering an EBIT margin of 32.9%. Profit before tax increased 34.5% to ₹14,126 crore, benefiting from higher operating profits despite a rise in finance costs.

Consolidated net profit for the quarter stood at ₹81.67 billion, compared to ₹73 billion in the previous quarter, though it came in slightly below the estimate of ₹84 billion. Revenue for the quarter was ₹585.39 billion, against ₹553.83 billion in the prior quarter, exceeding the estimate of ₹570.5 billion. The net debt-to-EBITDA ratio (annualized) improved significantly to 1.17 times from 1.70 times as of June 30, 2025, underscoring disciplined balance sheet management. Consolidated capex stood at ₹13,386 crore, with India capex at ₹9,698 crore.

The following table summarizes key financial metrics on both a year-on-year and sequential basis:

India and Africa Operations

India operations contributed ₹41,214 crore to revenues, up 9.7% year-on-year. Mobile services revenue grew 9.2% to ₹29,929 crore, supported by a 5.4% increase in Average Revenue Per User (ARPU) to ₹264. The Homes segment posted robust 33.2% revenue growth to ₹2,288 crore, adding 473,000 customers during the quarter. Airtel Business delivered 12.0% revenue growth to ₹5,665 crore, led by digital services and connectivity solutions. Digital TV revenues saw a 1.4% YoY increase, while Passive Infrastructure Services revenue rose 4.6%. Smartphone data customers now represent 80% of total mobile customers, signaling a successful premiumization strategy.

Africa operations generated $1,836 million in constant currency revenues, up 21.1% year-on-year. The region added 5.5 million customers, bringing the total base to 189 million. Airtel Money transaction values grew 37.4% to $61 billion, highlighting the deepening penetration of financial services across sub-Saharan Africa.

Operational Highlights

The divergence between revenue growth (18.4%) and operating expense growth indicates improved operational leverage. While network operating expenses rose 13.3% to ₹10,810 crore, they remained well-contained relative to top-line expansion. The significant improvement in the net debt-to-EBITDA ratio from 1.70x to 1.17x reflects cash flow generation outpacing debt accumulation, enhancing financial flexibility for future capital expenditures and shareholder returns. The EPS-accretive nature of the Airtel Africa share swap implies that the consolidation of additional African assets will positively impact per-share earnings metrics.