Macquarie has maintained an ‘Outperform’ rating on Bharti Airtel with a target price of ₹1,800, indicating a 10% upside potential from the current market price of ₹1,632.90. The brokerage expects EBITDA to expand significantly over the next few years, driven by higher average revenue per user (ARPU) and margin expansion.
With Indus Towers now being accounted as a subsidiary instead of an associate in Bharti Airtel’s consolidated financials, Macquarie has adjusted its earnings estimates. The brokerage now forecasts EBITDA to rise from $6.8 billion in FY25E to $9.0 billion in FY28E, supported by an average 10% ARPU increase and a 200bps margin expansion.
However, Macquarie has cut its EPS estimates for FY25E/26E/27E by 3.6%/42.2%/28.3%, primarily due to the impact of Indus Towers’ consolidation. Despite these downward revisions, the brokerage believes that potential tariff hikes and a stronger dividend payout could act as catalysts for the stock. Given these growth drivers, Macquarie remains positive on Bharti Airtel’s long-term prospects.
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