Bharti Airtel hits new high, up 40% in 1 year; brokerages see more upside

Business Standard

4 hours ago

Bharti Airtel share price today: Shares of Bharti Airtel hit a record high of ₹1,924, as they rallied 3 per cent on the BSE in Friday's intra-day trade on the back of heavy volumes amid a healthy outlook.
The stock price of the telecom services provider has surpassed its previous high of ₹1,916.90, which it touched on May 7, 2025.
Thus far in the calendar year 2025, Bharti Airtel has outperformed the market by surging 20 per cent, as compared to a 4.5 per cent rise in the BSE Sensex. In the past year, the stock zoomed 40 per cent, as against a 6 per cent gain in the benchmark index.
Reliance Jio initial public offering
Mukesh Ambani's telecom giant, Reliance Jio, is reportedly planning an initial public offering (IPO) in the second half of 2025, aiming to be the largest IPO in India. According to media reports, Jio Platforms is estimated to have an enterprise value (EV) in the range of $136 billion-$154 billion at its peak.
JM Financial, Mirae Asset Sharekhan see more upside
Analysts at JM Financial Institutional Securities have raised Bharti's FY26-27 consolidated Ebitda estimate by 10 per cent, accounting for Indus consolidation. Hence, there is a marginal 0-1 per cent increase in profit after tax (PAT) estimate and a slight increase in target price (TP) to ₹2,050 apiece, from ₹2,035 per share earlier.
The brokerage firm in its June 9, 2025, telecom report said that it reiterates a 'Buy' rating on Bharti Airtel as analysts believe India's wireless business tariff hikes are likely to be more frequent given the consolidated industry structure. Higher average revenue per user or ARPU requirement for Jio is not only to justify its significant 5G capex, but also given its potential listing plans. Bharti is the biggest beneficiary of higher tariffs, given the sticky and premium quality of its subs.
ARPU growth aided by likely moderation in capex will continue to drive Bharti's free cash flow (FCF), enabling it to get to net cash by FY30; this will also aid in accretion in equity value. However, there is a possibility of continued stake sale by promoters to outside investors, which could be a near-to-medium term overhang as Singtel (effective stake at ~28.3 per cent) and the Mittal family (effective stake at ~22.9 per cent) plan to equalise their stake over a period of time.
According to Mirae Asset Sharekhan, Bharti Airtel has delivered a robust performance in FY25, achieving strong revenue and Ebitda growth despite challenges such as African currency devaluation, with a focus on operational excellence and deleveraging, strengthening its balance sheet.
The company is making significant strides in mobile, broadband, and digital TV segments, which are expected to be bolstered further by strategic partnerships like Apple TV and Starlink, while continuing to invest in 5G and fibre expansion.
The company continues to achieve industry-leading ARPU for India mobile services, while traction from adjacent businesses and moderation of capex intensity is likely to further deleverage the balance sheet, the brokerage firm said; maintain 'buy' rating on stock with a target price of ₹2,170 per share.