Airtel’s stock saw a nearly 3% increase in early trading on Tuesday following the telecom giant’s robust performance in the July-September quarter of FY26. Beginning positively, the stock reached a high of Rs 2,129 on the NSE, up from its previous close of Rs 2,074.
The surge in stock value was fueled by brokerages’ confidence in Airtel’s future growth prospects, attributed to enhanced profitability, a growing base of premium subscribers, improved Average Revenue Per User (ARPU), and sustained operational excellence in both India and Africa.
In the past year, Airtel’s shares have soared by over 33%, significantly outperforming the Nifty 50 index, which recorded a gain of approximately 7.5% during the same period.
Highlighting Airtel’s strong performance in the second quarter of FY26, the company reported a 73.6% year-on-year surge in consolidated net profit to Rs 6,792 crore. This growth was supported by robust expansion in its India and Africa operations. Consolidated revenue also climbed by 25.7% year-on-year to Rs 52,145 crore, with EBITDA increasing by 35.9% to Rs 29,919 crore, resulting in an EBITDA margin of 57.4%.
In India, Airtel recorded revenue of Rs 38,690 crore, marking a 22.6% rise from the corresponding period last year. The EBITDA margin in India reached 60%, showcasing the company’s emphasis on sustainable growth. Airtel’s ARPU surged to Rs 256 from Rs 233 a year earlier, driven by an expanding base of high-value customers. The company welcomed 5.1 million smartphone users and 951,000 home broadband customers during the quarter.
The Africa business segment also delivered strong results, with constant-currency revenue growing by 24.2% year-on-year and an EBITDA margin of 48.8%. Airtel reported a capital expenditure (capex) of Rs 11,362 crore for the quarter and a net debt-to-EBITDAaL ratio of 1.19x on an annualized basis.
Brokerages continue to hold optimistic views on Airtel post its robust Q2 performance. CLSA maintained an Outperform rating with a target price of Rs 2,285 per share, citing results that surpassed expectations in both India and Africa. Jefferies also retained a Buy rating with a target price of Rs 2,635 per share, acknowledging Airtel’s strong performance in Q2.
Analysts believe Airtel’s strategic focus on high-value customers, increasing data consumption, and expanding broadband operations position the company favorably for sustained growth. The company’s disciplined capital investments and robust cash flow generation further bolster its financial standing.
While some analysts caution that short-term gains may have already been factored into the stock price, they remain positive about Airtel’s medium- to long-term potential, driven by rising ARPU, stable margins, and ongoing digital expansion. Airtel continues to be seen as a solid investment option in the telecom sector, particularly for investors seeking stable growth and exposure to India’s expanding digital landscape.