Macquarie has maintained an Outperform rating on Bharti Airtel while raising its target price to ₹2,050, supported by an improving tariff environment, rising free cash flow (FCF), and a stronger return on invested capital (RoIC) outlook.
The brokerage highlighted the emergence of an effective industry-wide tariff floor, which should aid Bharti’s revenue growth. In its base case, Macquarie models an 11% increase in ARPU, reaching ₹290 by FY27.
EPS estimates have been adjusted slightly, with FY26/FY27/FY28 EPS revised by -1.7%/+0.9%/+2.7%, reflecting stronger cash flow expectations and continued margin discipline.
Macquarie believes Bharti Airtel remains a key beneficiary of the ongoing telecom sector recovery, with a robust growth outlook across both India mobile and non-wireless businesses.
Disclaimer: The views and target prices mentioned in this article are as stated by Macquarie. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
