Shares of Bharti Airtel have drawn mixed reactions from leading brokerages following the company’s Q1FY26 earnings, with some maintaining their bullish stance while others remain cautious amid competitive and capex-related concerns.
Motilal Oswal Financial Services (MOSL) has reaffirmed a ‘Buy’ rating on Bharti Airtel and raised its target price to ₹2,285 (from ₹2,200). The brokerage highlighted the telecom major’s strong Q1 performance, robust free cash flows (FCF), and declining net debt. The stock has outperformed with a 22% gain calendar year-to-date versus a 4% rise in Nifty-50.
MOSL noted that valuation has been re-rated to ~12x FY27E EV/EBITDA, and further upside hinges on tariff hikes post-FY27. It is modeling 14%/17% CAGR in revenue/EBITDA over FY25–28.
Antique also retained a ‘Buy’ rating and raised its target price to ₹2,222 from ₹2,100. It said results were in line with expectations, with FY26/27 earnings expected to remain stable. While FY26 subscriber estimates were trimmed by 1%, the ARPU outlook was unchanged. A tariff hike in Q1FY27 could be the next key trigger. Lower wireless capex is expected to enhance FCF and RoE.
In contrast, Avendus retained a ‘Reduce’ call with a target price of ₹1,370, citing potential headwinds. It expects India capex (excluding Indus) at ₹28,500/₹27,500 crore for FY26/27, with increased spending in the Home & Enterprise segment. Free cash flow is forecast to rise significantly, from ₹23,300 crore in FY25 to ₹38,700 crore in FY27. However, rising capex from rivals VIL and BSNL could lead to some subscriber churn from the top two telcos, it warned.
Disclaimer: The views and investment suggestions expressed by brokerages are their own and not those of this publication. Investors are advised to consult certified financial experts before making any investment decisions.
