Indus contributions, stronger Africa biz to boost Airtel cash flows in FY26: S&P Global
Kolkata:
Bharti Airtel
is likely to report higher cash flows in FY26, on the back of earnings contribution from its towers unit, Indus, and strong operating performance of its Africa business, international ratings agency, S&P Global said Wednesday.
As per company data, Bharti
Airtel
's cash & cash equivalents in FY25 stood at ₹10,653.1 crore.
The global ratings agency expects Airtel's rising earnings to strengthen its ratio of funds from operations (FFO) to debt to over 30% in the next 12-24 months. It, though, added that the telco would need to maintain the ratio at well above 30% to ensure a higher standalone credit profile (SACP).
'The consolidation of telecom tower subsidiary,
Indus Towers
, and the full-year impact of the last round of mobile rate hikes will underpin Airtel's rising earnings in FY26, and further support will come from stabilising forex rates and the underlying strength in the operating performance of the company's Africa operations,' S&P Global said in an official statement.
Airtel shares were up 0.58% to ₹1819 in Wednesday mid-morning trade on the BSE.
Airtel Africa
had recently reported an $80 million net profit in the March quarter — compared with a $91 million net loss a year back — while its quarterly revenue had risen 18 % on-year to $1.31 billion on the back of tariff adjustments in the key Nigeria market and easing of currency headwinds.
S&P Global estimates Airtel's adjusted Ebitda in FY26 will rise 14-16% to ₹110 crore (INR 1.1 bn).
Earlier this month, Airtel posted a five-fold jump in its fourth-quarter net profit, boosted by a tax benefit and strong subscriber additions in its India mobile broadband business.
Analysts expect the country's second-largest telco to deliver stronger results with strong operating margins in coming quarters, benefitting from earlier investments in strengthening its 4G network and 5G rollout, and a likely moderation in mobile capex spends.
S&P Global, though, said it would increasingly consider the rising debt of Bharti Telecom Ltd (BTL) - the main promoter-level controlling company of Airtel - in its analysis of the Sunil Mittal-led telco's creditworthiness, going forward.
'Higher debt at Bharti Telecom carries the risk of the company depending on dividends from Airtel to service its debt. This is since Airtel is BTL's largest asset,' S&P Global said.
The global ratings agency estimates BTL's net debt at ₹40,000 crore as of March 31, 2025, which is about 16% of Airtel's adjusted debt on the same date. 'This is up from (BTL's) ₹25,000 crore at the end of FY24.'
In recent years, Singtel and the Mittal family — the co-promoters of Bharti Airtel — have been shifting their direct holdings in Airtel to BTL, which has been funding such deals via debt. Consequently, BTL's debt levels have increased because of its rising stake in Airtel. BTL's stake in Airtel is now at 40.47%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
41 minutes ago
- Economic Times
'No money, no plan, no safety net': Shark Tank India's Anupam Mittal shares his bold move that helped build his startup
Anupam Mittal recalls being advised to play it safe and rebuid slowly. In a world where conventional wisdom often rewards caution, founder Anupam Mittal is flipping the script. In a recent viral LinkedIn post, the entrepreneur and Shark Tank India judge shared an unfiltered reflection on risk, resilience, and rewriting the rulebook. For anyone chasing exponential success, Mittal warns: following the 'safe' path won't take you to Mittal, most people dream of 100x returns but operate with a 1x mindset. He admitted that figuring out money took him time, but understanding wealth took even longer. What stood out through the years, though, was a pattern: the biggest wins often came not from playing by the book, but from bending the rules—not illegally, but a glimpse into his own journey post-dot-com, Mittal recalled moving back to India with no money, no plan, and no safety net. While well-wishers advised him to play it safe and rebuild slowly, he chose the path less travelled—launching an Internet company in a country that barely had Internet. With no direct-to-consumer (D2C) ecosystem, no dating app culture, and no e-commerce playbook, Mittal didn't follow demand. He created it. He also pointed out how this pattern continues across generations, whether it's content creators starting before content was 'cool,' or founders launching when the market wasn't ready, or brands that thrive by defying conventional paths. The rules, he admits, are useful—but only until you learn when and how to bend them. Ending his post with a powerful note for builders and dreamers alike, Mittal wrote: 'First learn the rules. Then, write your own. Because 'play it safe' rarely makes history.' Users flooded Anupam Mittal's post with praise, calling his story a powerful reminder that real breakthroughs often stem not from outright defiance, but from the courage to think differently, with intention rather than impulse. Many resonated with the idea that while understanding the rules is crucial, true impact often comes from knowing when to rewrite them. Others reflected on how personal growth and game-changing success can come from trusting one's gut over the conventional rulebook, even if it means being a little bold—or a little crazy.
NDTV
2 hours ago
- NDTV
Gods Reign To Aim For Glory At BMPS 2025 Featuring INR 2 Crore Prize Pool
In order to represent a bold step in creating a high-performance and innovation-driven esports ecosystem in India, OnePlus has come together with Gods Reign, one of India's most accomplished esports organizations. With these partnerships, OnePlus aims to strengthen its position in the gaming market while contributing to the growing esports scene in India. They will integrate its latest technology into Gods Reign's gaming environment. The collaboration will drive mutual growth through product feedback loops, co-branded activations, and amplified storytelling around Gods Reign's journey across top-tier Battlegrounds Mobile India (BGMI) tournaments. Earlier this year, Gods Reign cemented their position as one of India's top BGMI teams by winning the ESL Snapdragon Pro Series (SPS) Season 6 and taking home INR 50 lakh in prize money. With the BGMI Pro Series (BMPS) 2025 currently underway, where 96 of the country's top teams are competing for a massive INR 2 crore prize pool, Gods Reign is driving their training and tournament push with OnePlus' top-tier gaming technology. The company also plans to involve these teams in its product development process. Players will give feedback on current devices, which will be used to improve performance in real-world gaming conditions. OnePlus is making a statement through this partnership that its devices are battle-tested and gamer-approved, rigorously refined through high-stakes competition. "This partnership with OnePlus marks a significant milestone for our team. We're proud to be aligned with a brand that not only understands elite performance but also shares our hunger for innovation and excellence. With Times One's support, we look forward to creating impactful experiences for our fans and the gaming community," said K R Rohith, CEO & Co Founder, Gods Reign. The deal was facilitated by Times One, which connects forward-thinking brands with the vibrant esports and gaming audience through strategic collaborations and branded experiences. "At Times One, we believe in the transformative power of esports as the next big cultural movement. Facilitating this partnership between OnePlus and Gods Reign underscores our mission to bring together premium brands and elite gaming talent. We are thrilled to play a pivotal role in scripting this chapter of India's gaming evolution," said Kanishka Singh, Head Gaming Business , Times One. As per the FICCI-EY Media and Entertainment Industry Report 2025, the number of brands investing in esports is projected to grow from 68 in 2024 to 75 in 2025, while total player participation in tournaments is expected to grow from 2 million to 2.8 million in the same period. This growth signals a broader shift in how brands are recognizing esports as a credible, high-engagement platform. In this landscape, the partnership between OnePlus and Gods Reign is strategically aligned with where the industry is headed. Listen to the latest songs, only on
Time of India
2 hours ago
- Time of India
Gold selloff on jobs euphoria is misguided? Peter Schiff says rebound coming
The sharp drop in gold prices and concurrent rally in equities following the May U.S. jobs report on Friday reflect a misreading of economic fundamentals and will likely unwind, according to economist Peter Schiff . The longtime gold advocate said investors are overreacting to headline payroll figures while ignoring signs of underlying labour market weakness. In a post on microblogging site X (formerly Twitter), Schiff wrote, "The stock market is the tail that wags the dog. The labor market is weak. But since the headline number in the May jobs report was not as weak as expected, the stock market rose. As a result, traders bought dollars and sold gold. Those trades will reverse as the headlines fade." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Stocks gain, gold slides U.S. stocks closed higher on Friday, buoyed by a modest upside surprise in nonfarm payrolls , which showed 139,000 jobs added in May, ahead of consensus estimates of 130,000. April's job gains were revised down to 147,000. The unemployment rate held steady at 4.2%, in line with forecasts. Live Events The upbeat reaction sent the S&P 500 above the 6,000 mark for the first time since February 21, while technology stocks led gains and Tesla rebounded from its previous session's losses. The data also prompted traders to reassess the timeline for Federal Reserve rate cuts , with expectations now pointing to a single reduction in September, rather than an earlier move. This recalibration sent the dollar higher and weighed on gold. Spot gold fell 1.27% to $3,310.58 an ounce on Friday, while U.S. gold futures dropped 1.23% to $3,309.50. 'Those trades will reverse' Schiff, a vocal critic of Fed policy and fiat currency weakness, argued that markets are reacting to surface-level data while the broader picture remains fragile. 'Those trades will reverse as the headlines fade,' he warned, suggesting that the rush into the dollar and out of gold will prove short-lived. His latest remarks come just weeks after a separate post on X, in which he questioned why central banks around the world continue to accumulate gold rather than Bitcoin. 'If gold is the past and Bitcoin is the future, why are foreign central banks that are preparing for a future where the U.S. dollar is no longer the reserve currency, replacing their dollar reserves with gold and not Bitcoin?' Schiff asked in a May 27 post to his one million followers. He has repeatedly pointed to record central bank bullion buying, now topping 1,000 metric tons annually, as evidence of deepening global distrust in the U.S. dollar and growing confidence in gold's role as a long-term reserve asset. Gold's case remains intact Despite recent price pressure, Schiff maintains that gold remains well-positioned amid geopolitical tensions, fiscal concerns, and an uncertain Fed path. He views the latest market reaction as a temporary divergence from long-term fundamentals, one that will fade as reality sets in. Also read | Why are central banks choosing gold over Bitcoin? Peter Schiff revives debate amid record bullion buying With the Federal Reserve set to meet later this month, all eyes will be on updated projections and commentary that could either reinforce or undermine the narrative driving recent trades. For Schiff, though, the message is clear: the market's reaction to the jobs data is 'misguided,' and gold's rebound is only a matter of time. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
