Bharti Airtel, the lead telecom operator in India, rolled out its Q2 FY25 reports. The data shows a significant rise in its net profit. A higher Average Revenue Per User (ARPU) and increased tariffs in its Indian operations have proven to be the key driving factors.
For the same period a year back, Airtel’s net profit stood at Rs. 1,341 crore and has surged significantly on a yearly basis to reach Rs 3,593 crore, as noted in the company’s latest exchange filing.
In India, Airtel’s ARPU rose to Rs. 233. This increase shows the company’s continuous efforts to optimize its customer base. Airtel has also been working on transitioning 2G users to 4G and expanding smartphone penetration to 75% of its mobile base. Furthermore, as the brand added 4.2 million new smartphone customers, India’s mobile services revenue went up too by 18.5%.
Airtel’s Homes business recorded a 17.3% year-on-year growth, adding 5.83 lakh new customers, which has increased its subscriber base to 8.6 million. Also, Airtel Business reported a 10.7% revenue increase, which was driven by high demand for enterprise solutions.
In Africa, Airtel noted a 20.8% revenue increase in constant currency terms. However, macroeconomic factors affected profitability, with EBITDA and EBIT margins shrinking by 201 and 226 basis points, respectively. Furthermore, currency fluctuations and economic challenges have also pulled back Africa’s growth momentum.
As for India, the EBITDA margin climbed to 54.8%, thanks to operational efficiencies. This resulted in a consolidated EBITDA rise of 12% to Rs 22,021 crore, with a margin of 53.1%. Airtel also prepaid Rs 8,465 crore to the Telecom Department in deferred spectrum dues to reduce interest expenses on its 2016 spectrum liabilities. It was originally set at a 9.3% interest rate.
In a strategic move, Airtel also confirmed a leadership transition for January 2026, with COO Shashwat Sharma set to take over as CEO and MD. The current CEO, Gopal Vittal, will step into the role of executive vice-chairman.
Shares of Airtel closed slightly lower at Rs 1,663.35 on the NSE today, down by 0.16%.