Bharti Airtel’s Q1FY26 performance has been received positively by brokerages, with CLSA maintaining an ‘Outperform’ rating and Morgan Stanley continuing with an ‘Equal-weight’ stance. Both noted a strong improvement in the company’s India operations, led by high ARPU and subscriber gains.
CLSA on Bharti Airtel share: Outperform, TP ₹2,035
CLSA has reaffirmed its ‘Outperform’ rating on Bharti Airtel with a target price of ₹2,035. The brokerage highlighted that India mobile revenue and EBITDA rose by 22–30% year-on-year in Q1FY26, underlining the company’s robust execution and market leadership.
Bharti Airtel’s ARPU remains the highest in the industry, and strong subscriber additions continued during the quarter. CLSA also noted that net additions in the homes broadband segment reached an all-time high, further strengthening the domestic growth narrative.
Free cash flow generation remained strong in the quarter, aided by a consistent operating performance and controlled capital expenditure.
Morgan Stanley on Bharti Airtel share: Equal-weight, TP ₹1,890
Morgan Stanley maintained an ‘Equal-weight’ rating with a target price of ₹1,890. While the brokerage acknowledged a slight beat on consolidated revenue and EBITDA—1% and 1.7% above estimates respectively—it remains cautious about further upside from current levels.
The India business (excluding passive infrastructure) led the earnings beat, driven by a better-than-expected showing in the core Airtel segment. Additionally, capital expenditure in India (ex-Indus) came in at ₹54.5 billion, significantly lower than the previous quarter and Morgan Stanley’s estimate.
Net debt declined sequentially, supported by reduced capex and stronger-than-anticipated cash flows, contributing to an improved balance sheet outlook.
Disclaimer: The views expressed in this article are those of the respective brokerages. This does not constitute investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
