Bharti Airtel’s stock prices took a hit in early trading on Friday following reports that Singapore Telecommunications Ltd (Singtel) plans to sell a portion of its stake in the telecom giant through a sizable block deal.
As of 9:29 am, Bharti Airtel shares were down by 3.66% at Rs 2,018 on the Bombay Stock Exchange (BSE), with significant trading volumes observed in the initial minutes of the session. This decline occurred despite a general weak sentiment prevailing in the broader market.
Singtel’s subsidiary, Pastel Ltd, is set to divest approximately 5.1 crore shares, equivalent to around 0.8% of Bharti Airtel’s equity, in a block deal valued at roughly Rs 10,300 crore. The transaction is being conducted at a base price of Rs 2,030 per share, representing a 3.1% discount compared to Airtel’s closing price of Rs 2,094.60 on the BSE the previous day.
JPMorgan is facilitating the deal as the broker.
This divestment aligns with Singtel’s ongoing strategy of capital management and portfolio optimization. The telecom group based in Singapore has been gradually reducing its stake in Bharti Airtel over recent years to unlock value and redirect capital towards its core operations.
In a previous instance in May 2025, Singtel sold a 1.2% direct stake in Airtel for approximately Rs 12,400 crore (S$2 billion) via a private placement to global and Indian institutional investors. Between 2022 and 2024, it generated around S$3.5 billion from earlier stake sales.
Despite this divestment, Singtel, a long-standing and significant international shareholder of Airtel, intends to retain a notable interest in the Indian telecom company. The decision to offload a minor stake this time is viewed as part of a broader capital restructuring initiative rather than a complete exit strategy.
The company had previously outlined plans to rebalance its investment portfolio across Asian markets, focusing on 5G expansion, enterprise connectivity, and digital services.
Following a strong quarterly performance by Bharti Airtel, which reported an 89% year-on-year surge in consolidated net profit to Rs 6,791.7 crore for the July–September quarter (Q2 FY26), the telecom giant’s stock deal took place.
Revenue saw a 25.7% yearly increase to Rs 52,145 crore, primarily driven by robust growth in its India wireless and Airtel Africa segments.
Airtel’s Average Revenue Per User (ARPU) continued to climb, indicating the success of its premiumization strategy.
Consolidated EBITDA registered a 6% quarter-on-quarter growth, supported by significant improvements in both domestic and international operations.
Additionally, the company reported a healthy consolidated free cash flow of Rs 14,600 crore and anticipates reduced capital expenditure in FY26, excluding investments in Indus Towers, which is expected to fortify its balance sheet and enhance cash generation.
Despite short-term market pressures due to the block deal, brokerages remain optimistic about Bharti Airtel’s prospects. Motilal Oswal has maintained a Buy rating on the stock, with a target price of Rs 2,365.
The brokerage foresees the company’s revenue and EBITDA to grow at a compounded annual growth rate (CAGR) of 15% and 18%, respectively, between FY25 and FY28, driven by tariff revisions, broadband expansion, and sustained growth in its African business.
Analysts project that Bharti Airtel could generate free cash flow of nearly Rs 1 lakh crore between FY26 and FY27, supported by margin expansion and stable capital efficiency.
While the stock reacted negatively to the block deal, analysts believe this pressure is temporary. The transaction is anticipated to enhance liquidity in the market and offer long-term investors an entry point at lower levels.
Bharti Airtel remains a fundamentally robust player in the telecom sector, backed by consistent subscriber growth, increasing data consumption, and potential tariff adjustments later in the fiscal year.