Summary:
Bharti Airtel reported a 37.3% year-on-year increase in first-quarter net profit, driven by subscriber growth and more customers upgrading to premium plans. The company’s ARPU rose to ₹264, supported by expanding 4G and 5G adoption, while overall revenue increased 18.4% to ₹585.39 billion, exceeding market expectations. Airtel also recorded strong growth in its Africa business, and analysts expect further industry-wide ARPU gains if telecom operators implement another round of tariff hikes in the coming months.
Bharti Airtel, India’s second-largest telecom operator, reported a 37.3% year-on-year increase in net profit for the first quarter on Tuesday, supported by strong subscriber growth and a higher number of customers moving to premium-priced plans.
The company’s consolidated net profit climbed to ₹81.67 billion (USD 856.28 million) for the quarter ended June 30, compared with ₹59.48 billion in the corresponding period last year.
With no industry-wide tariff revisions since July 2024, telecom companies have increasingly focused on encouraging customers to upgrade to higher-value plans to improve average revenue per user (ARPU), a key performance indicator for the sector.
Both Bharti Airtel and market leader Reliance Jio introduced changes to selected recharge plans and expanded their premium offerings to drive higher customer spending and accelerate migration to 4G and 5G services.
Airtel’s ARPU, the highest in the industry, increased 5.6% year-on-year to ₹264 during the quarter, supported by a 7.5% rise in its 4G and 5G subscriber base.
Since Reliance Jio entered the market in 2016, India’s telecom sector has remained highly competitive, with the company emerging as the country’s largest mobile operator by subscriber count.
Several analysts expect another round of tariff hikes of around 12% to 15% in the coming months, which could further improve ARPU across the telecom industry.
As of June 30, Airtel’s subscriber base in India had grown 12.8% year-on-year to nearly 492 million users, compared with Reliance Jio’s 533.3 million subscribers.
Revenue from Airtel’s Africa operations, which span 14 countries in sub-Saharan Africa and contribute more than one-fourth of the group’s total revenue, surged 45.4% during the quarter.
Overall revenue rose 18.4% year-on-year to ₹585.39 billion (USD 6.14 billion), exceeding analysts’ estimate of ₹573.1 billion.
Last month, Reliance Jio reported a 6.8% increase in quarterly profit, while Vodafone Idea is yet to announce its financial results.
