Bharti Airtel Reports 34% Drop in Q4 Profit Despite 16% Revenue Growth
Bharti Airtel Q4 Results: Profit falls 34% YoY to Rs 7,325 crore even as revenue jumps 16%
The Economic TimesImage: The Economic Times
Bharti Airtel reported a consolidated net profit of ₹7,325 crore for Q4 FY26, a 34% decline from the previous year, despite revenue increasing by 16% to ₹55,383 crore. The growth was driven by strong performance in India and Africa, with significant contributions from its Homes business and strategic initiatives in digital services.
- 01Consolidated net profit fell 34% YoY to ₹7,325 crore.
- 02Quarterly revenue increased 16% YoY to ₹55,383 crore.
- 03India's mobile revenue grew 8% YoY, with 5.8 million new smartphone users added.
- 04Airtel announced plans to capitalise its NBFC arm with ₹20,000 crore.
- 05Shares closed 1.4% higher at ₹1,781 on NSE.
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Bharti Airtel's consolidated net profit for the fourth quarter of FY26 dropped 34% year-on-year to ₹7,325 crore, down from ₹11,022 crore in the same quarter last year. Despite this decline in profit, the company achieved a revenue growth of 16% to reach ₹55,383 crore, driven by robust performance in its India operations and steady growth in Africa. The revenue from India, including passive infrastructure services, rose 8% YoY to ₹39,566 crore. Airtel's EBITDA also saw an increase of 17% YoY to ₹32,038 crore, with an EBITDA margin improvement of 60 basis points to 57.8%. The company's mobile revenue in India was bolstered by a rise in smartphone penetration and premiumisation, with 5.8 million new smartphone users added during the quarter. Additionally, Airtel's Homes business reported a remarkable 37% growth in revenue, adding 1.135 million net customers. The company is also expanding its digital services, having partnered with Google to enhance spam protection and messaging capabilities. Furthermore, Airtel plans to inject ₹20,000 crore into its NBFC arm, Airtel Money Limited, to scale its digital lending operations. The company's balance sheet strengthened, with a net debt-to-EBITDA ratio improving to 1.29 times from 1.86 times a year ago. Airtel's shares closed 1.4% higher at ₹1,781 on the National Stock Exchange (NSE).
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The decline in profit may affect investor confidence, but revenue growth indicates strong demand for Airtel's services, potentially leading to job stability in the telecom sector.
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