BHARTI AIRTEL (+) : Strong FCF generation; balancing growth and dividend needs

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BHARTI AIRTEL (+) : Strong FCF generation; balancing growth and dividend needs

EQUITIES

TELECOM OPERATORS

BHARTI AIRTEL OUTPERFORMPRICE* INR1,884  TARGET PRICE INR2,300 (UPSIDE 22%) TARGET -8%PRICE EPS 03/27e-7% EPS 03/28e-9%

Strong FCF generation; balancing growth and dividend needs

Bharti Airtel is generating strong cash flows now as its India and Africa EBITDA continue to see14 MAY 2026

Securities Research Report robust growth and capex intensity in its largest business, India Mobile, has moderated. Airtel raised

Production time: 16:51* (London time)

its dividend per share by 50% y-y and is looking to balance its growth and payout aspirations. Airtel

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sees opportunities such as Data Centers and Home Broadband in India and is incubating its NBFC

Kunal Vora, CFA business with small capital. It also sees an opportunity to raise stakes in the high growth AfricaBNP Paribas Securities India Private

Limited market. Airtel acquired its promoter’s stake in Airtel Africa through a share swap at terms we see as

+91 22 6196 4384 favourable and we think this transaction also reduces the stake-sale overhang from SingTel. Its

kunal.d.vora@asia.bnpparibas.com

strategy seems reasonable to us. We see the recent correction as an opportunity and retain our

Outperform rating. We lower our TP as we factor in a higher WACC and equity dilution.

India mobile revenue growth moderates in absence of tariff hikes; home services strong

Consolidated revenue and EBITDA were 1.2% and 1.6% ahead of our estimates, respectively,

helped by Africa. India mobile business revenue and EBITDA grew 0.6% q-q and 0.9% respectively

and were in-line with our estimates. India Mobile was impacted by lower number of days in the quarter