Synopsis: The share of this company gained attention after CLSA highlighted Airtel Money’s potential US$10 billion valuation and upcoming IPO, which could unlock significant value and strengthen long-term growth prospects.
The article outlines CLSA’s rationale behind the bullish stance on this company, which operates in 18 countries across South Asia and Africa, it is one of the top three mobile service providers globally, serving over 650 million customers.
With a market capitalization of Rs 11,10,531 crore, Bharti Airtel Ltd’s share closed at Rs 1,823 per share, up by 2.27 percent from its previous close. The share of this company gave a return of 243 percent over the last five year.
What is Airtel Money?
Bharti Airtel’s Airtel Money Limited is a non-deposit-taking NBFC that focuses on providing digital financial services, particularly lending solutions. The company recently received approval from the Reserve Bank of India to operate as an NBFC and is now moving toward its commercial launch. It aims to use Airtel’s digital ecosystem, customer base, and analytics capabilities to expand access to financial services.
Performance in FY26: The financial services business continued to show strong momentum during the year. Airtel Money’s loan service provider business achieved a monthly loan disbursement run rate exceeding Rs 550 crore, reflecting growing customer adoption. Meanwhile, Airtel Payments Bank ended Q4 FY26 with around 120 million monthly transacting users, while its annualized revenue run rate reached approximately Rs 3,400 crore, growing 23 percent YoY. Deposits also remained robust at over Rs 4,600 crore, up 27 percent YoY.
Outlook and Growth Plans: Airtel has outlined ambitious plans for Airtel Money, with a proposed capital infusion of Rs 20,000 crore over the next few years. The company expects its large customer base, digital platform, and data analytics capabilities, supported by over 500 data scientists, to drive future growth. Management sees a significant opportunity to address India’s credit gap by offering simple, secure, and scalable digital financial products, positioning Airtel Money as a key growth pillar within Airtel’s broader financial services ecosystem.
Brokerage View
CLSA maintained an Outperform rating on Bharti Airtel with a target price of Rs 2,310, implying an upside potential of around 26.7 percent from current levels, supported by the strong growth prospects of Airtel Money and its upcoming IPO.
Airtel Money IPO Planned for 2H26: CLSA highlighted that Airtel Money, the mobile money business of Airtel Africa, is expected to launch its IPO in the second half of 2026. The offering is reportedly aimed at unlocking value from Airtel Africa’s fast-growing digital financial services platform.
Potential US$10 Billion Valuation: According to CLSA, Airtel Money could raise between US$1.5 billion and US$2 billion through the IPO at a potential valuation of around US$10 billion. This would represent a fourfold increase from its 2021 valuation and equate to roughly 60 percent of Airtel Africa’s current market capitalization.
Strong Financial Performance: Airtel Money delivered robust growth in FY26, with revenue increasing 36 percent YoY to US$1.4 billion. EBITDA rose 31 percent YoY to US$689 million, reflecting strong customer adoption and improving profitability across its digital financial services business.
Significant Growth Opportunity Ahead: CLSA noted that Airtel Money’s penetration remains relatively low at 29 percent of Airtel Africa’s 184 million mobile subscribers, with Nigeria yet to scale meaningfully. The brokerage believes this leaves substantial room for future growth. Airtel Money contributes around 20 percent of Airtel Africa’s revenue, while Africa accounts for nearly 25 percent of Bharti Airtel’s consolidated operations.i Airtel’s consolidated operations.
In conclusion, Airtel Money is emerging as a key value creator for Bharti Airtel, supported by strong revenue growth, rising profitability, and significant untapped market potential. With a potential US$10 billion valuation and an IPO planned for 2H26, the business could unlock substantial shareholder value while strengthening Airtel’s long-term growth story beyond its core telecom operations.
About the Company
Bharti Airtel is a leading global telecommunications company serving over 650 million customers across 15 countries in India and Africa. The company offers mobile, broadband, digital payments, and financial services, while operating as India’s largest integrated communications provider and Africa’s second-largest mobile operator.
Financial highlights: The revenue from operations grew by 16 percent to Rs 55,383 crore in Q4 FY26 from Rs 47,876 crore in Q4 FY25, and EBIDT grew by 17 percent to Rs 31,492 crore in Q4 FY26 from Rs 27,009 crore in Q4 FY25. This was accompanied by a net profit decrease of 16 percent to Rs 9,247 crore in Q4 FY26 from Rs 12,476 crore in Q4 FY25, resulting in an EPS decrease of 38 percent to Rs 12.02 per share in Q4 FY26 from Rs 19.33 per share in Q4 FY25.
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