Bharti Airtel has seen a solid 17% rise in its stock price in 2025, drawing positive attention from global brokerage firms Jefferies and Macquarie, both of which have named the telecom major as a top pick in India’s telecom space. Backed by robust subscriber additions, a premium customer base, rising revenues, and improving margins, Airtel is being seen as a standout performer in a consolidating industry, according to Jefferies.
Jefferies: Bharti Airtel Is the Best Bet on India’s Telecom Revival
Jefferies has reaffirmed its ‘Buy’ rating on Bharti Airtel, calling it the preferred vehicle to participate in India’s telecom turnaround. The brokerage highlights three key drivers behind its bullish outlook
1. Strong Subscriber Growth Post Tariff Hike
Airtel added 5 million subscribers in Q4 FY25—second only to Jio’s 6 million. Over the last three quarters, Airtel has gained a net 7 million users, while Jio lost 1.5 million and Vodafone Idea (Vi) shed 11.9 million.
“A higher share of Airtel’s users treat it as their primary SIM, giving the company an edge in customer retention and monetization,” Jefferies noted.
2. Industry-Leading Revenue and ARPU Growth
Following recent tariff hikes, Airtel has led the industry with a 16% revenue increase, outpacing Jio (12%) and Vi (13%). Airtel’s subsidiary Bharti Hexacom also posted a 23% YoY revenue growth in Q4.
ARPU (Average Revenue Per User) for Airtel and Hexacom rose 16–18%, versus 12–13% for Jio and Vi, reflecting its stronger premium user base and better revenue realization.
3. Margin Expansion and Operational Efficiency
Jefferies reported that Airtel led in EBITDA margin improvement, contributing to the industry’s 20 bps gain to 53.6%. This was driven by
- Residual gains from tariff hikes
- Lower network operating costs
- Reduced sales, general & administrative (SG&A) expenses
While Jio gained 50 bps in revenue market share during the quarter, Airtel’s dip was minimal at 10 bps, compared to Vi’s continued decline—its share now stands at 13.2%, down from 18% in Q2 FY23.
Macquarie: Target Price for Bharti Airtel Raised to ₹2,050 on Bullish Outlook
Macquarie has also maintained a positive stance on Bharti Airtel, raising its 12-month target price by 14% to ₹2,050 per share. The upgrade reflects improving fundamentals and a more optimistic outlook for the telecom industry.
Why Macquarie Remains Bullish
Bharti Airtel continues to be part of Macquarie’s “India Super 6s” portfolio, with analysts now applying a scenario-weighted valuation model to better capture the company’s long-term growth potential.
- The revised target implies a 4% free cash flow (FCF) yield at the consolidated level.
- In the base case, Macquarie expects ARPU to rise to ₹290 by FY27, up 11% from current levels, with ₹45 of that increase projected by FY25.
- This growth trajectory helps raise the stock’s base case fair value to ₹1,920.
Conclusion: Airtel Well-Positioned in a Reshaping Industry
As India’s telecom market undergoes consolidation and transformation, Bharti Airtel stands out with consistent subscriber gains, pricing power, and cost discipline. With both Jefferies and Macquarie endorsing it as a top telecom play, the stock is likely to remain on investor radars amid improving sector dynamics and digital consumption trends.
