Airtel Shares Jump 3% After Strong Q2 FY26 Results: Should You Buy or Hold?

Bharti Airtel’s shares climbed nearly 3% in early trade on Tuesday, following the release of its robust Q2 FY26 results, which showed strong growth across India and Africa.
The stock opened higher at Rs 2,129 on the NSE, compared to the previous close of Rs 2,074, as investors responded positively to a 73.6% year-on-year (YoY) jump in consolidated profit.

Airtel Reports 74% Profit Growth in Q2 FY26

For the July–September quarter of FY26, Airtel posted a consolidated net profit of Rs 6,792 crore, driven by higher ARPU, expanding broadband operations, and stable performance across its African business.

Key financial highlights:

• Consolidated revenue: Rs 52,145 crore (↑ 25.7% YoY)

• EBITDA: Rs 29,919 crore (↑ 35.9% YoY)

• EBITDA margin: 57.4%

• India revenue: Rs 38,690 crore (↑ 22.6% YoY)

• ARPU (Average Revenue Per User): Rs 256 (↑ from Rs 233 YoY)

• Africa revenue (constant currency): ↑ 24.2% YoY

• Capex: Rs 11,362 crore

• Net debt-to-EBITDAaL: 1.19x

Airtel added 5.1 million new smartphone users and 951,000 home broadband customers during the quarter, underscoring strong consumer demand.

ARPU Growth and Premium Customer Base Boost Profits

Airtel’s ARPU rose 10% YoY to Rs 256, reflecting its strategy of focusing on high-value subscribers and better monetisation of data services.
The telecom major continues to expand its 5G network, while maintaining profitability through disciplined capital spending and improved efficiency in its Indian operations, where EBITDA margin touched 60%.

The Africa business, which has become a key growth engine, reported an EBITDA margin of 48.8%, highlighting Airtel’s success in diversifying geographically.

Brokerages Maintain Positive Outlook

Global and domestic brokerages expressed confidence in Airtel’s growth trajectory, citing its strong fundamentals and expanding market share.

CLSA

• Rating: Outperform

• Target Price: Rs 2,285

• Notes stronger-than-expected Q2 across both India and Africa.

• Sees consistent mobile revenue growth of 3–4% QoQ and 13–20% YoY.

• Expects continued ARPU improvement and steady free cash flow (Rs 31,900 crore after leases and capex).

Jefferies

• Rating: Buy

• Target Price: Rs 2,635

• Expects broad-based earnings growth driven by subscriber premiumisation.

• Raised FY26–FY28 earnings forecast by 1–4%.

• Highlights strong cash generation and stable leverage of 1.2x.

Analysts believe Airtel remains well-positioned in the long term, backed by steady ARPU growth, digital expansion, and solid free cash flows.

Stock Outlook: Buy, Hold, or Sell?

Experts suggest that while short-term upside may already be factored into the price, Airtel’s medium- to long-term outlook remains bullish.
The company’s continued focus on premium users, growth in home broadband, and disciplined financial management make it one of the strongest telecom bets in India’s digital infrastructure ecosystem.

“Airtel remains a strong play on India’s expanding digital economy, supported by steady revenue visibility and healthy margins,” said a senior market analyst.

However, investors are advised to monitor potential risks such as regulatory changes, competitive pricing pressures, and Africa currency fluctuations.

Conclusion

With a 33% rise in share price over the past year, Airtel continues to outperform the Nifty 50, which gained only 7.5% during the same period.
For long-term investors, the telecom giant remains a buy-on-dips opportunity, driven by robust fundamentals, rising ARPU, and the next wave of digital expansion.

Disclaimer:

The views and projections presented are based on broker and analyst commentary. Investors should conduct due diligence or consult a certified financial advisor before making investment decisions.