At a Glance
Bharti Airtel has quietly evolved into one of the most profitable telecom machines globally. With 56% EBITDA margin, 28% ROE, and a ₹11.6 lakh Cr market cap, it’s India’s most efficient telecom player. Yet… with a P/E of 42 and slowing growth, is the stock now too chill to thrill?
1️⃣ Airtel 3.0: From Duopoly Warrior to Global Giant
- 🌎 Present in 18 countries: India, Africa, Sri Lanka, Bangladesh
- 📶 Core biz: Mobile, Home Broadband, DTH, Enterprise
- 🏦 Bonus biz: Airtel Payments Bank (FY25 revenue: ₹1,820 Cr), Nxtra Data Centres
- 💼 India = 65% of revenue, Africa = 30%, Rest = fluff
📡 It’s no longer just “Jio vs Airtel” — it’s a hybrid telco-fintech-techco now.
2️⃣ 5-Year Financials: The Turnaround Is Now a Takeoff
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM % | ROE (%) |
|---|---|---|---|---|---|
| FY21 | 100,616 | -12,364 | -25.63 | 45% | – |
| FY22 | 116,547 | 8,305 | 7.23 | 49% | 11% |
| FY23 | 139,145 | 12,287 | 14.97 | 51% | 12% |
| FY24 | 149,982 | 8,558 | 13.20 | 52% | 13% |
| FY25 | 172,985 | 37,481 | 58.85 | 54% | 28% ✅ |
📈 Profit grew 4.5x in 3 years, and margins are touching satellite orbit.
3️⃣ Quarter-on-Quarter: Still Juiced Up
| Quarter | Revenue (₹ Cr) | EBITDA (₹ Cr) | EBITDA % | Net Profit (₹ Cr) |
|---|---|---|---|---|
| Q1 FY25 | 37,599 | 19,365 | 52% | 2,068 |
| Q2 FY25 | 38,506 | 19,708 | 51% | 4,718 |
| Q3 FY25 | 41,473 | 21,846 | 53% | 4,153 |
| Q4 FY25 | 47,876 | 27,009 | 56% | 12,476 🚀 |
🧨 Q4 profit jump = 3x YoY
Thanks to one-offs + Africa margin bump + strong India ARPU
4️⃣ Balance Sheet & Cash Flow: Finally Clean!
- 🏦 Borrowings reduced to ₹2.13 lakh Cr
- 💸 Cash from ops: ₹98,332 Cr in FY25
- 💀 Debt/Equity: manageable at ~1.5x
- 💼 Capex steady: ~₹60,000 Cr annually
- 💸 ₹16/share dividend declared (record date: July 18)
💡 Debt wasn’t eliminated, but it’s stabilized — unlike Vodafone Idea’s soap opera.
5️⃣ Airtel Africa: The Underrated Growth Engine?
- 🇳🇬 Nigeria = Largest market, 40% of Africa EBITDA
- 🪙 Airtel Money = growing fast, like India’s UPI moment
- 📊 Africa OPM = 49%
- 📞 Total Africa subscribers = 150M+
📈 Africa segment trades at 9x EBITDA, while Jio Platforms is probably valued at 20x internally.
6️⃣ Valuation: Premium, But Not Absurd
| Metric | Value |
|---|---|
| CMP | ₹1,934 |
| Market Cap | ₹11.6 Lakh Cr |
| P/E | 41.8x |
| Book Value | ₹199 |
| P/B | 9.7x |
| Dividend Yield | 0.83% |
| ROE | 28.3% ✅ |
| 3-Year Stock CAGR | 42% 🚀 |
📍 EduFairValue Range: ₹1,750 – ₹2,250
- Base: EPS FY26 est. ₹70 × 25x = ₹1,750
- Bull: EPS ₹75 × 30x = ₹2,250
💰 It’s premium because it’s earned it — compare that with peers like Tata Comm or Vodafone Idea 😂
7️⃣ TL;DR 📲
- 💪 28% ROE, 56% margins, Africa kicker
- 📡 Airtel is now a cash-printing machine with fintech upside
- 🎯 Strong dividend, improving debt, stable subscriber base
- 🤌 Valuation is steep, but business is elite
- 🧠 Jio may have disrupted the past — but Airtel owns the present
💬 Final Thought
Bharti Airtel is like that studious kid who also wins the sports day relay. Quiet. Reliable. Efficient. And still faster than most. If you want exposure to India’s digital infrastructure boom without worrying about AGR dues, this might just be your front-row seat.
✍️ Written by Prashant | 📅 June 24, 2025
Tags: Bharti Airtel, Airtel Q4 Results, Airtel Africa, Telecom Stocks, Airtel Money, ROE 28%, Airtel Valuation, Jio vs Airtel, Dividend Stocks, Airtel Share Price, Mobile ARPU India
