1. Opening Hook
Remember when people said Airtel would struggle against Jio’s “cheap data revolution”? Well, they’re now quietly sipping lattes at their Nxtra data centers while AI runs the lights. Gopal Vittal spent an hour talking about 5G, cloud, and Google partnerships — all while hinting that the real game is balance sheet jujitsu and premium ARPUs.
And just when you thought the telecom war was over, Airtel’s turning itself into a digital empire that also happens to make calls. Buckle up — this one gets spicier than a Gurgaon traffic jam. Read on. 😏
2. At a Glance
- Revenue ₹52,000 Cr– Gopal calls it “steady”; analysts call it “telecom with an MBA.”
- EBITDAaL Margin 51.5%– Half the money goes to towers, the rest to keeping Jio nervous.
- Capex ₹7,200 Cr– Turns out fiber dreams need real cash.
- Operating FCF ₹10,750 Cr– Airtel printing free cash like AI writes poetry.
- Net Debt/EBITDAaL 1.32x– Balance sheet flexing harder than gym bros.
- ARPU ₹256– One extra day in the quarter, one extra rupee of confidence.
- Stock traders?– Heard “5G” and forgot “AGR dues.”
3. Management’s Key Commentary
Gopal Vittal:“We welcome the Supreme Court’s decision on AGR reconciliation.”(Translation: Finally, someone realized we might have overpaid for government math errors.)
“We solarized over 2,900 sites this quarter.”(When you can’t cut costs, shine sunlight on them.)
“We now provide 7,60,000 jobs directly or indirectly.”(And still get blamed for dropped calls. Irony dialed in.)
“5G users reached 167 million; 5G sites handle 40% of traffic.”(Basically: half our customers can’t tell, but it sounds futuristic.)
“We’re building a 1 GW AI data hub with Google.”(Because nothing says synergy like storing memes at scale.)
“Airtel Cloud has 70 conversations ongoing with large clients.”(Corporate-speak for: still chasing signatures.)
“AI blocked 57 billion spam calls and 4.2 lakh fraudulent links.”(So you can thank Airtel for fewer ‘Congratulations, you’ve won a car!’ messages.)🚗
“Our mission is war on waste.”(Except when it’s PowerPoint slides.)
4. Numbers Decoded
| Metric | Q2FY26 | QoQ Change | Commentary |
|---|---|---|---|
| Consolidated Revenue | ₹52,000 Cr | +2.8% | Consistency is the new growth story |
| India Revenue (ex-Indus) | ₹34,900 Cr | +3.2% | Premiumization doing the heavy lifting |
| EBITDAaL Margin | 51.5% | Flat | Efficiency hiding inflation pain |
| Capex | ₹7,200 Cr | +12% | Fiber + FWA = “land grab” investment phase |
| Operating FCF | ₹10,750 Cr | +9% | Still enough to fund Google partnerships |
| ARPU | ₹256 | +1.6% | One extra day + better mix = bragging rights |
| 5G Users | 167 Mn | +11% | 5G now handles 40% of total traffic |
| Nxtra EBITDAaL | ₹5,300 Cr (Africa incl.) | +7% | The silent cash cow 🐮 |
(Translation: Airtel’s numbers look like a treadmill — steady pace, no break, but everyone’s sweating.)
5. Analyst Questions
HSBC:“Tell us about the Google deal.”Vittal:“It’s composite — data centers, cables, and landing stations.”(Translation: If it connects, we’ll bill it.)
BNP Paribas:“Will data centers cost $25 billion?”Vittal:“That number’s a bit high.”(A polite way of saying: calm down, we’re rich, not insane.)
ICICI Securities:“Why increase stake in Indus Towers?”Vittal:“Because it’s undervalued and pays dividends.”(Also because Airtel doesn’t like letting go of power lines.)
JP Morgan:“Any change to capex guidance?”Vittal:“Software flips the switch to 5G-SA. Cost? Negligible.”(Free upgrades are the new marketing.)
Kotak:“What’s cross-sell potential?”Vittal:“365 million users = top of funnel for everything.”(If you’re on Airtel, you’re a walking upsell.)
6. Guidance & Outlook
Airtel expects steady growth, “assuming no recession” (bold, in this economy). The broadband “land grab” continues, targeting 2.5M home passes quarterly and 100M homes over 5–6 years. 5G Advanced rollouts are next, with dual NSA/SA modes expanding nationwide.
