Synopsis: CLSA maintains an Outperform rating on Bharti Airtel, citing postpaid leadership, strong ARPU, pricing power, premium customer growth, and expected tariff hikes supporting future earnings growth.
This Large-cap Stock, engaged in providing telecommunications, broadband, digital TV, enterprise solutions, and mobile communication services across India and international markets, is in focus after CLSA gave an Outperform target of Rs. 2,310, which has an upside potential of 20.57 percent.
With a market capitalization of Rs. 11,67,441.86 crore, the shares of Bharti Airtel Limited were currently trading at Rs. 1,915.95 per equity share, down nearly 0.46 percent from its previous day’s close price of Rs. 1,924.85.
What is the News?
CLSA, a prominent brokerage firm, has recommended a “Outperform” call on Bharti Airtel Limited with a target price of Rs. 2,310 per share, indicating an upside potential of 20.57 percent from its current price of Rs. 1,915.95 per share.
CLSA maintains its Outperform rating on Bharti Airtel because the company continues to lead India’s postpaid mobile market. Postpaid customers usually spend more every month, helping Airtel maintain the highest average revenue per user (ARPU) in the industry. The launch of the Fast Lane service is expected to further strengthen customer loyalty and attract more premium users, supporting steady revenue growth.
Another positive factor is that postpaid customers are generally less sensitive to price increases than prepaid users. This gives Airtel greater pricing power and helps protect its earnings. CLSA also believes that an industry-wide tariff hike is inevitable, which would further improve Airtel’s revenue and profitability. With its strong premium customer base and favorable industry trends, Airtel is well-positioned to deliver healthy earnings growth over the coming years.
New Growth Drivers
Bharti Airtel is building new growth engines beyond its telecom business. Through its data centre arm Nxtra, the company plans to build 1 GW of capacity over the next few years and has raised $1 billion from marquee investors to support expansion. Airtel is also developing a large AI-focused data centre in Visakhapatnam for Google. In financial services, Airtel has received RBI approval to operate a non-deposit-taking NBFC and is already disbursing loans worth over Rs. 550 crore every month.
The company is also expanding its Airtel Cloud business, targeting enterprises that need secure, India-based cloud services. Airtel closed 24 cloud deals by the end of FY26 and added more customers in April, with a healthy pipeline ahead. Management believes demand for AI infrastructure, sovereign cloud solutions, and small-ticket digital lending will create new long-term growth opportunities while keeping investments disciplined and focused.
Can Tariff Hikes Boost Bharti Airtel?
Tariff hikes can help Bharti Airtel grow because the company has a large base of postpaid customers who usually continue using its services even after price increases. This allows Airtel to increase revenue while maintaining strong average revenue per user (ARPU) and improving profitability.
In addition, Airtel is expanding into data centres, cloud services, AI infrastructure, and digital lending. These new businesses are expected to generate additional revenue, making the company less dependent on its telecom business and supporting long-term growth.
Customers Base
Bharti Airtel has crossed 650 million customers across India and Africa, making it the world’s second-largest telecom operator by mobile subscriber base, according to GSMA Intelligence. The milestone reflects Airtel’s strong global presence and continued expansion across high-growth markets, supported by investments in mobile, broadband, enterprise, and digital services.
In India, Airtel had over 482 million wireless subscribers as of March 2026. The company also leads the country’s machine-to-machine (M2M) segment with 79.01 million M2M connections and a 61.98 percent market share, highlighting its strong position in enterprise connectivity and IoT services.
Company Overview
Bharti Airtel is one of India’s leading telecommunications companies, headquartered in Gurugram. Founded in 1995 by Sunil Bharti Mittal, the company has grown into a global communications provider with operations across Asia and Africa.
Airtel offers a wide range of services, including mobile, broadband, digital payments, enterprise solutions, and cloud services. With a large customer base and continued investments in digital infrastructure, the company plays an important role in expanding connectivity, supporting businesses, and driving India’s digital transformation.
Recent Quarter Results
Coming into financial highlights, Bharti Airtel Limited’s revenue has increased from Rs. 47,876 crore in Q4 FY25 to Rs. 55,383 crore in Q4 FY26, which has grown by 15.68 percent. The net profit has decreased by 25.88 percent from Rs. 12,476 crore in Q4 FY25 to Rs. 9,247 crore in Q4 FY26. Bharti Airtel Limited’s revenue and net profit have grown at a CAGR of 16 percent and 24 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 18.5 percent and 21.9 percent, respectively. Bharti Airtel Limited has an earnings per share (EPS) of Rs. 43.8, and its debt-to-equity ratio is 1.31x.
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