Airtel Rises 3% Near Record High as ARPU Lifts Q2 Revenue 17%

Airtel’s Pricing Power Takes Centre Stage After a Strong Quarter

Higher average revenue per user lifted growth, while the results put subscriber trends and the durability of tariff-led gains in focus.

ARPU growth strengthens the revenue story

Airtel’s consolidated revenue rose to ₹60,878 crore in the quarter, up 16.7% from a year earlier. The key operating support was average revenue per user, or ARPU, which increased to ₹271 from ₹256 in Q2 FY26. For a telecom operator, higher revenue per user can lift sales without requiring customer numbers to grow at the same pace, making pricing and the mix of services important measures of growth.

The company said its focus on strengthening its portfolio proposition contributed to record postpaid net additions of 1.2 million, taking that customer base to 31.2 million. This points to premium plans as one avenue for improving revenue per customer. However, the brokerage noted that muted subscriber additions partly offset the ARPU strength, leaving customer growth an important counterpart to pricing gains.

Profit and margins show operating strength

Net profit climbed 23.8% year on year to ₹10,710.4 crore, compared with ₹8,650.8 crore a year earlier. Consolidated EBITDA was ₹35,240 crore, with a margin of 57.9%. JM Financial said EBITDA was 1% above its estimate and 4% ahead of consensus, citing improved India wireless EBITDA and strong growth in Africa.

The revenue and profit figures together show that growth extended beyond the top line. For investors, the margin is a useful indicator of how much operating earnings the business generated relative to revenue. The reported figure provides a quarterly reference point, though it does not by itself establish whether the same level can be sustained in future periods.

Africa adds another source of growth

Airtel’s Africa business delivered 20.6% year-on-year growth in constant-currency terms, while reported revenue increased 25.7%. The business had 193.9 million customers. Across its operations in 15 countries, Airtel’s total customer base reached 693 million.

The contribution from Africa gives the consolidated results more than one growth driver. JM Financial also identified the region’s performance as a contributor to the EBITDA beat. The distinction between constant-currency and reported growth matters when assessing the business: both figures were strong this quarter, but they describe growth on different bases.

Tariff expectations support the outlook, but execution matters

JM Financial marginally raised its FY28–29 EBITDA estimates by about 1% and increased its target price to ₹2,410 from ₹2,400, reiterating a Buy rating. The brokerage’s case includes expected industry ARPU growth of about 12% annually over FY26–29, supported by regular tariff increases and premiumisation. It also cited improved visibility of a roughly 15% tariff hike in the next six months, while describing this as an expectation rather than a completed change.

Airtel shares rose more than 3% intraday after the results, reaching ₹2,120 and moving to within 3% of their stated all-time high of ₹2,174.50. The move reflected investor attention to the earnings and ARPU trajectory, but a share-price reaction does not settle whether future growth will meet expectations. JM Financial also noted that Airtel continues to trail the market leader in home broadband subscriber additions. The pace of customer gains, tariff changes and conversion of investment into returns remain relevant considerations.

Key Highlights

• Q2 FY27 revenue grew 16.7% year on year to ₹60,878 crore.
• ARPU rose to ₹271 from ₹256 in the year-earlier quarter.
• Net profit increased 23.8% to ₹10,710.4 crore; EBITDA was ₹35,240 crore.
• Postpaid net additions reached a record 1.2 million, taking the base to 31.2 million.
• Africa reported 20.6% constant-currency revenue growth and a customer base of 193.9 million.

Investor Note: Airtel’s results show strong revenue and earnings growth, with ARPU and Africa providing support. Investors should weigh those positives against subscriber trends, broadband competition and the fact that forecast tariff increases and brokerage targets are expectations, not guaranteed outcomes.