Geojit Financial Services has reaffirmed its ‘BUY’ rating on Bharti Airtel, setting a target price of Rs 1,815, reflecting an 11% upside from the current market price of Rs 1,631. The recommendation is backed by strong revenue growth, rising Average Revenue Per User (ARPU), and continued expansion in India and Africa. Airtel reported a 460.9% year-on-year increase in Profit After Tax (PAT) for Q3FY25, driven by tariff adjustments and subscriber growth. With a well-structured 5G rollout, strategic acquisitions, and sustained infrastructure investments, Bharti Airtel is positioned for long-term growth in the telecom sector.

Strong Financial Performance in Q3FY25

Revenue Growth: Bharti Airtel's consolidated revenue increased 19.1% year-on-year (YoY) to Rs 45,129 crore, with significant contributions from its India and Africa operations.
India Business Performance: Revenue from India surged 24.6% YoY to Rs 34,654 crore, propelled by 21.4% growth in mobile services and 18.7% rise in home broadband services.
EBITDA Expansion: The company’s EBITDA grew 21.4% YoY to Rs 24,597 crore, driven by cost efficiencies and revenue expansion, leading to a 110 bps improvement in EBITDA margin to 54.5%.
Profitability Surge: PAT saw an exceptional 460.9% YoY increase to Rs 16,135 crore, signaling robust operational performance.
These financial indicators underscore Bharti Airtel’s ability to maximize revenue streams while improving operational efficiency.

Tariff Adjustments Drive ARPU Growth

ARPU Expansion: Bharti Airtel reported an ARPU of Rs 245 for Q3FY25, compared to Rs 208 in Q3FY24, reflecting a strong upward trajectory.
Pricing Strategy: The increment in ARPU was supported by tariff revisions, improving Airtel’s revenue-generating potential in the competitive telecom space.
With ARPU being a key profitability driver, Bharti Airtel’s pricing structure continues to yield strong revenue per subscriber.

Strategic Developments and Expansion

Indus Tower Consolidation: The company’s acquisition of Indus Tower Ltd in November 2024 has enhanced its infrastructure portfolio, supporting long-term growth.
5G Rollout on Track: Airtel is progressing steadily with its 5G network expansion, aimed at reinforcing market leadership and subscriber retention.
Infrastructure Growth: The company added 5,200 towers and 16,300 mobile broadband stations in Q3FY25, boosting network strength and user experience.
Bharti Airtel’s focus on strategic partnerships, network investments, and subscriber base expansion reinforces its competitive position.

Financial Projections and Key Valuations

Geojit projects strong growth across key financial metrics for Bharti Airtel:

With improving margins and profitability, Bharti Airtel remains a solid long-term investment in the telecom space.

Technical Analysis: Key Levels and Trends

Support and Resistance Levels:

Fibonacci Retracement Levels (Based on 52-week High-Low of Rs 1,779 - Rs 1,151):

The stock remains bullish, with a breakout above Rs 1,750 likely leading to further gains towards Rs 1,815.

Competitive Landscape

Bharti Airtel operates in a highly competitive telecom industry, with its main rivals being:

Reliance Jio: India's largest telecom operator with an aggressive pricing strategy and 5G expansion.
Vodafone Idea: Struggling with financial challenges but remains a competitor in the price-sensitive market.
Despite competition, Bharti Airtel’s premium pricing strategy, strong ARPU, and 5G rollout give it an edge over rivals.

Conclusion: A Strong Investment Opportunity

Bharti Airtel’s strong financial performance, rising ARPU, and aggressive 5G expansion make it a top pick in the Indian telecom sector. With Geojit setting a target price of Rs 1,815, investors can expect a potential upside of 11% from current levels.

Investors should monitor key resistance levels, as a breakout above Rs 1,750 could confirm a further uptrend. With strong market fundamentals, Bharti Airtel remains an attractive long-term investment.