- Telecom operator’s net income triples while revenues rise 12%.
- Shashwat Sharma as MD and CEO from January 1, 2026 while Vittal will move into the role of Executive Vice Chairman.
Bharti Airtel Ltd., India’s second-largest wireless carrier after Reliance Jio, reported its quarterly earnings, revealing a mixed performance that highlights both resilience and ongoing challenges.
For the quarter ending September 30, the company nearly tripled its net income, reporting Rs35.9 billion ($427 million), a significant increase compared to the same period last year.
However, this figure fell short of analysts’ expectations, which had projected an average profit of Rs43.98 billion, primarily due to the impact of a one-time charge.
The telecommunications operator faced an Rs8.54 billion one-time expense during the quarter, which, alongside a loss of subscribers, hindered profitability despite the benefits derived from recent tariff hikes implemented in July.
The scenario underscores the complex dynamics within the Indian telecom sector, where regulatory challenges and market conditions continuously evolve.
Competitive landscape
Despite these hurdles, Bharti Airtel achieved a 12 per cent revenue increase, reaching Rs414.73 billion, just surpassing analyst estimates. Notably, total costs also rose by 12 per cent, amounting to Rs196.3 billion. These figures indicate that while the company is growing, the rising costs are a concern that could potentially erode future profitability if not managed effectively.
Moreover, the average revenue per user (ARPU) showed promising growth, rising by 10 per cent to Rs233 from the previous quarter. However, this still falls short of the critical Rs300 threshold that executives cite as essential for sustaining the financial health of telecom operators in India.
The ability to achieve and maintain a favourable ARPU will be pivotal as the industry continues to navigate its competitive landscape.
It is also noteworthy that Bharti Airtel is undergoing leadership changes, with Gopal Vittal appointed as vice chairman and Shashwat Sharma as managing director and chief executive officer from January 1, 2026 while Vittal will move into the role of Executive Vice Chairman.
These transitions may signal the company’s strategic intent to strengthen its management structure in light of the recent results and the challenges ahead.