Bharti Airtel Limited, one of India’s leading telecommunications companies, has a significant presence both domestically and internationally. As of April 05, 2025, the New Delhi-based company operates in 18 countries across South Asia and Africa, offering a range of services from mobile networks to broadband and digital TV. This article examines Bharti Airtel’s business model, its financial performance in Q3 FY25 (October-December 2024), and provides insights into promoter details and the shareholding pattern.
Bharti Airtel Business Model: Integrated Telecom Services
Bharti Airtel’s business model focuses on delivering a comprehensive suite of telecommunication services, leveraging its extensive network infrastructure and technological advancements to cater to diverse customer segments. Founded by Sunil Bharti Mittal in 1995, the company has evolved into a multinational telecom giant.
Key Components of the Business Model
- Mobile Services
Airtel provides 5G, 4G, and LTE Advanced services across India, alongside prepaid, postpaid, roaming, and value-added services like mobile internet. This segment drives the majority of its revenue, bolstered by tariff hikes and smartphone adoption. - Broadband and Homes Services
The Homes segment offers fixed-line broadband and voice services in approximately 1,290 cities, with Airtel Xstream Fiber expanding its footprint. It added 674,000 subscribers in Q3 FY25, reflecting strong growth. - Digital TV Services
Airtel’s direct-to-home (DTH) platform provides 725 channels, including 94 HD channels and interactive services, though this segment has seen declining revenue due to competition from OTT platforms. - Airtel Business (B2B)
This division serves enterprises with connectivity, cloud solutions, and data center services, reporting an 8.7% YoY revenue increase in Q3 FY25. - International Operations
Airtel operates in 14 African countries, Sri Lanka, Bangladesh, and the Channel Islands, contributing to revenue diversification with sustained constant currency growth in Africa. - Passive Infrastructure
Through its 50.005% stake in Indus Towers (consolidated effective November 19, 2024), Airtel supports network expansion, adding a new revenue stream.
Challenges in the Model
The capital-intensive nature of telecom infrastructure, coupled with tariff wars and regulatory pressures, poses risks. High spectrum debt—though mitigated by prepayments like Rs 5,985 crore in Q3 FY25—and competition from Reliance Jio challenge profitability. The decline in DTH revenue highlights shifting consumer preferences.
Q3 FY25 Earnings: Exceptional Profit Surge
Bharti Airtel announced its Q3 FY25 (October-December 2024) financial results on February 6, 2025, reporting a dramatic 505% YoY profit increase, driven by tariff hikes, operational growth, and the Indus Towers consolidation. Below is a detailed analysis of the performance.
Financial Highlights
- Net Profit: Consolidated net profit soared 505% YoY to Rs 14,781 crore from Rs 2,442 crore in Q3 FY24, and rose 311% sequentially from Rs 3,593 crore in Q2 FY25.
- Revenue from Operations: Revenue grew 19% YoY to Rs 45,599 crore from Rs 38,339 crore, up 9.28% from Rs 41,728 crore in Q2 FY25.
- EBITDA: Operating profit specifics are unavailable, but strong revenue growth suggests robust margins, supported by a 52.7% margin in Q2 FY25 trends.
- ARPU: Average Revenue Per User rose to Rs 245 from Rs 208 YoY, reflecting tariff hikes and improved customer mix.
- India Business: Revenue reached Rs 34,654 crore, up 24.6% YoY, driven by mobile services (21.4% YoY growth), Homes (18.7% YoY), and Airtel Business (8.7% YoY).
Segment-Wise Performance
- Mobile Services (India): Revenue grew 21.4% YoY, fueled by tariff increases and a 23.2% rise in data usage (24.5 GB/customer/month).
- Homes Services: Added 674,000 customers, with revenue up 18.7% YoY.
- Airtel Business: Revenue rose 8.7% YoY, supported by enterprise demand.
- Digital TV: Revenue fell 2.9% YoY due to OTT competition.
- Passive Infrastructure: Contributed 5.7% to India revenue growth post-Indus Towers consolidation.
Key Factors Behind the Q3 Performance
- Tariff Hikes: Higher mobile tariffs significantly boosted ARPU and revenue.
- Indus Towers Consolidation: Effective November 19, 2024, this added to profit and revenue.
- Africa Growth: Constant currency expansion cushioned overall performance.
Nine-Month FY25 Overview (April-December 2024)
- Revenue: Approximately Rs 128,800 crore (extrapolated), up significantly YoY.
- Net profit: Estimated at Rs 22,527 crore, reflecting strong quarterly gains.
Promoter Details and Shareholding Pattern
Promoter Information
Bharti Airtel is controlled by the Mittal family, led by Sunil Bharti Mittal (Chairman), with Bharti Enterprises as the primary promoter entity. Indian Continent Investment Limited and other group companies manage the promoter stake.
Shareholding Pattern (as of December 31, 2024)
Based on the latest regulatory filings:
- Promoter Holding: 53.11%, slightly down from 53.14% in September 2024, with no pledged shares, reflecting stable control.
- Foreign Institutional Investors (FIIs): 24.27%, down from 25.07% in September 2024, indicating a 0.8% reduction.
- Domestic Institutional Investors (DIIs): 19.41%, up from 18.63%, with mutual funds at 11.37% of the DII stake.
- Public and Others: 3.21%, slightly up from prior quarters.
The promoter’s majority stake ensures strategic direction, while institutional holdings highlight investor confidence.
Strategic Updates and Outlook
- Debt Prepayment: Airtel prepaid Rs 5,985 crore in spectrum liabilities and redeemed $1 billion in perpetual debt in Q3 FY25, reducing financial strain.
- Indus Towers Stake: CCI-approved increase to 50.005% post-buyback enhances infrastructure control.
- 5G Rollout: Continued expansion with Nokia’s cloud-native solutions strengthens network capabilities.
Airtel’s outlook is bolstered by tariff-driven revenue, 5G growth, and debt reduction, though it must navigate competition and DTH declines.
Bharti Airtel’s business model, integrating mobile, broadband, and enterprise services, positions it as a telecom leader, though it faces capital and competitive pressures. Q3 FY25 earnings reflect a 505% profit surge to Rs 14,781 crore, driven by tariff hikes and Indus Towers consolidation. The promoter’s 53.11% stake in the shareholding pattern ensures stability, supported by institutional interest. Stakeholders must weigh Airtel’s growth momentum against market challenges for its future trajectory.
Disclaimer
The information in this article is based on publicly available data as of April 05, 2025, sourced from regulatory filings, company announcements, and credible reports. It is intended for informational purposes only and does not constitute financial advice, investment recommendations, or an endorsement of Bharti Airtel Limited. Readers should conduct their own research and consult financial professionals before making investment decisions. The author and publisher are not liable for any errors, omissions, or outcomes resulting from the use of this information.
