Q2 FY27 results analysis · November 05, 2026
Bharti Airtel Q2 FY27 Results Analysis: PAT Jumps 31%, Margins Expand Across the Board (BHARTIARTL)
+30.9%PAT year on year, Rs. 8,887.50 Cr
Source: Quarterly results filing (BSE)
Quick summary
Bharti Airtel Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 60,877.50 Cr (+16.75% YoY) and PAT growth of +30.86% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 60,877.50 Cr (+16.75% YoY) |
| PAT (Q2) | Rs. 8,887.50 Cr (+30.86% YoY) |
| EBITDA margin | 57.90% (+51 bps YoY) |
| EPS (Q2) | Rs. 14.25 (+21.59% YoY) |
Quarter Snapshot
Bharti Airtel delivered 16.75% YoY revenue growth with PAT up 30.86%, margin expansion on every headline basis, and leverage at 0.70x net debt ex-leases/EBITDAaL. Management's stated targets were met — Africa's 20.6% constant-currency growth against the 20%+ CAGR commitment and the Airtel Money LSE listing completed October 14, 2026. Watch items are Digital TV and Homes profitability erosion and finance costs still up 17.3% YoY.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Revenue "likely ahead (YoY), with QoQ momentum intact" | Revenue +16.75% YoY, +3.99% QoQ | Played out |
| Entry-price ladder repair (Rs.299 plan discontinued 12-Aug-2026, per pre-call note — web-sourced) to lift ARPU ~Rs.4–12 | ARPU Rs.271 (+5.9% YoY, +2.65% QoQ) | Played out |
| Margins "likely compressing at the edges" (energy, chipset) | EBITDA margin 57.89% (+51 bps YoY, +49 bps QoQ); opex grew slower than revenue | Contradicted by the quarter's print |
| Finance costs "watch whether… normalizes" vs rising trend | −4.18% QoQ (Rs.5,707.3 Cr), still +17.3% YoY | Partially |
| Naira tailwind / muted translation drag | Africa reported +37.55% vs +20.6% cc | Played out |
| Airtel Money listing "on track and now concrete" | Listed LSE October 14, 2026 | Played out |
| "Watch for the capex line bending up" (data-centre tension) | Capex −6.9% QoQ / +9.7% YoY + Rs.2,825.8 Cr land parcel outside capex | Partially |
| Homes net adds vs Q1 moderation; FWA pullback | 676K net adds, QoQ recovery — recovered QoQ | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Airtel Money London listing in H2 2026 | Management guidance from earlier FY27 earnings calls | Listed on the LSE October 14, 2026 (subsequent event); Rs.180.2 Cr IPO charge booked — outside the quarter, disclosed | Met |
| Africa 20%+ constant-currency revenue CAGR | Management guidance on the Q1 FY27 call ("sustained momentum of 20% plus CAGR") | +20.6% cc revenue YoY | Met |
| 1 GW data-centre capacity in 3–4 years | Stated on the Q3 FY26 call; reiterated Q1 FY27 | Rs.2,825.8 Cr land parcel invested; no MW update disclosed | On Track |
| Finance costs to normalize ("Africa one-off unwinds") | Q4 FY26 earnings call (CFO) | Net finance costs −3.9% QoQ (Rs.5,057.6 Cr), still +14.2% YoY | On Track |
| Capex "holding/decline" (open-ended, "as a rule, we do not give guidance") | Q3 FY26 earnings call (CFO) | Q2 capex Rs.12,466.8 Cr, −6.9% QoQ / +9.7% YoY, plus land parcel outside capex — QoQ decline, YoY increase; data-centre spend is a deliberate new layer | Partially |
| Progressive dividend beyond FY26's Rs.24/share | Progressive dividend policy (prior calls) | No India dividend with Q2; Airtel Africa subsidiary declared 3.1 cents interim | Too Early |
| "Industry leading mobile ARPU" and premiumization driving realization (media release / Q1 FY27 call) | ARPU Rs.271, +5.9% YoY, +2.65% QoQ — with postpaid at a record 1.2 Mn adds | Confirmed | |
| India EBITDA margin 60.8%, +80 bps YoY (media release) | India EBITDA Rs.25,729.4 Cr / margin 60.81% vs 59.97% | Confirmed | |
| Homes "robust trajectory" (media release) | Revenue +25.3% YoY and net adds recovered QoQ — but EBITDA margin −125 bps YoY and EBIT −47.9% YoY — growth confirmed, profitability caveat | Partially | |
| "Strong and resilient balance sheet" (Vice-Chairman statement) | Net debt ex-leases Rs.88,277.1 Cr, 0.70x EBITDAaL vs 1.19x YoY; ROCE 22.7% | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| ARPU (Rs.) | 256 | 264 | 271 |
| Mobile base (000s) | 364,192 | 376,508 | 377,224 |
| Postpaid base (000s) | 27,523 | 30,004 | 31,238 |
| Monthly churn | 2.9% | 2.6% | 2.9% |
Key Investment Insights
Key Positives
- Consolidated revenue grew 16.75% YoY to Rs.60,877.5 Cr, with India SA +9.35% and Africa +37.55% reported (+20.6% constant currency)
- Owners' PAT grew 30.86% YoY to Rs.8,887.5 Cr; normalized PAT grew 32.74% YoY to Rs.9,015.1 Cr
- EBITDA margin expanded ~51 bps YoY to 57.9% and EBIT margin expanded 177 bps YoY to 33.8%
- India mobile ARPU rose to Rs.271 (+5.9% YoY, +2.65% QoQ) with record postpaid net adds of 1.2 Mn
- Africa EBITDA grew 41.62% YoY with margin up 145 bps to 50.54%; net income to owners Rs.1,598.9 Cr
- Net debt ex-leases/EBITDAaL improved to 0.70x from 1.19x YoY; ROCE rose to 22.7% from 18.9%
- H1 operating cash flow of Rs.67,455.4 Cr was 3.26x PAT; Q2 OpFCF (EBITDA − capex) of Rs.22,772.7 Cr grew 23% YoY
Risk Factors
- Digital TV EBITDA fell 8.79% YoY with margin down 531 bps and EBIT loss widening to Rs.131.8 Cr
- Homes EBIT fell 47.9% YoY to Rs.157.0 Cr with margin down 125 bps and OpFCF of −Rs.1,041.3 Cr despite 25.3% revenue growth
- Finance costs remain elevated at +17.30% YoY (Rs.5,707.3 Cr) despite a 4.18% QoQ decline
- Passive Infrastructure EBITDA grew only 0.92% YoY with margin down 169 bps
- Standalone other income spiked to Rs.3,073.0 Cr (+184.8% YoY), flattering standalone PAT growth of 74.55%
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Companies on this page
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.