Synopsis: Singapore telecommunication also known as singtel ,promoter of the firm has likely sold around 5.1 crore shares in bharti airtel leading to the fall in its share price
This company which is one of the world’s leading providers of telecommunication services with presence in 18 countries representing India, Sri Lanka and in 14 countries in Africa has its shares in focus today as promoter likely sold 0.8 percent stake in the company.
With the market cap of Rs 11,42,074 crore , the shares of Bharti Airtel Ltd had hit its intraday low at Rs 1997.80 falling by about 4.5 percent compared to its previous day closing price of Rs 2094.60 . The shares are trading at a PE of 37.4 whereas its median PE is 63.3
About the block deal.
On Friday morning the shares of Bharti airtel turned Red and the reason for this fall was likely a block deal that took place in which Singapore’s Singtel likely sold more than 5.1 crore shares of the company. Earlier according to the media reports Pastel ltd which is a subsidiary of Singtel was looking to sell around 0.8 percent stake via a block deal worth Rs 10,300 crore, with a floor price of Rs 2,030 per share.
The block deal is more likely a capital management strategy to manage portfolio holdings and to improve shareholder returns which resulted in this stake dilution . This is not the first time the company has reduced its stake in airtel ,earlier in May 2025 the company had sold 1.2 percent stake through private placement .
The analysts have commented that this stake sale will probably create a pressure on the shares for a short time frame but on a long term point of view it will not affect the business fundamentals. Its average revenue per user (ARPU) has also improved to Rs 256 from Rs 233 a year ago.
Financials and others
The Revenue from operations for the company stands at Rs 52,145 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 41,473 crore which is an increase of 25.73 percent YoY . Similarly, the net profit stood at Rs 8,651 crore in Q2 FY26 from Rs 4,153 crore in Q2 FY25 giving an increase of about 108 percent.
As a leading global telecom provider, Bharti Airtel has connected over half a billion people by delivering services like Mobile, Broadband, Digital TV, and digital financial services. The company plans to upgrade businesses through superfast connectivity, an expansive digital portfolio.
According to the August notes by the company, “Capex is moderating as radio investments decline, while spending on transport, fiber, and core networks continues to support fiberization and capacity expansion. Cloud capex remains modular, with two regions (Delhi and Chennai) live and sufficient headroom for future growth.
In the Homes segment, investments are focused on customer premises equipment (CPEs) and dedicated home fiber, with backbone fiber accounted for separately. Management expects the capex-to-revenue ratio to keep falling as revenue rises and capex in major new radio cycles is unlikely.
Written by Leon Mendonca.
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