Bharti Airtel Q4 Results Review - Soft Growth But Gaining Subscriber Share: Motilal Oswal

Motilal Oswal Report

Bharti Airtel Ltd. reported in-line revenue/Ebitda growth of 3%/2% QoQ for its India business, supported by 2.0%/0.5% QoQ subscriber/average revenue per user growth.

The Africa business was hit by currency devaluation, which led to a 1%/2% QoQ decline in consol. revenue/Ebitda. Even the capex remained elevated QoQ.

Bharti Airtel continued with its deleveraging exercise, aided by healthy free cash flow generation during the quarter.

Over the next two-three years, Bharti Airtel is well poised to gain from sector consolidation and tariff hikes and drive strong FCF generation.

We raise our FY25 and FY26 estimates by building in tariff hikes each year. The awaited tariff hikes and moderation in capex could be the positive catalysts. Reiterate Buy with an SoTP-based target price of Rs 1,640.

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