Airtel Q2 showed resilience amid rate hikes, top level changes to be non-disruptive: Analysts

Regardless of a loss of 2.9 million customers, Bharti Airtel’s revenue development surpassed that of bigger rival Reliance Jio, which shed 11 million customers. Analysts connect Airtel’s resilience to a shift towards costs customers, with an internet gain of 0.8 million postpaid users. The firm reported a 168% increase in internet profit for Q2, reaching 3,593.2 crore, though it missed estimates because of a single loss linked to currency decline in Nigeria.

In addition, broker agent Citi Research said it does not anticipate the change in leadership in Airtel which was introduced Monday to be extremely turbulent. “This must be additional supported by Bharti’s solid well established qualifications and our view that the height of competitive strength is behind us”.

Experts claimed Airtel’s reported consolidated earnings and EBITDA (revenues before interest, taxes, depreciation, and amortisation) were greatly in line although net income was 11% lower than the agreement due to greater money cost, D&An expenses, and taxes.

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India’s second-largest telco also called COO Shashwat Sharma as the CEO-designate before taking control of full time as handling supervisor and CEO from January 1, 2026, running the consumer businesses– homes, broadband and mobile– for the telco. Existing CEO Gopal Vittal will relocate into the role of executive vice chairman, which will aid with a smooth transition.

The brokerage now estimates the second quarter earnings to be the begin of a multi-year development of over 20% in EBITDA for Airtel, assisted by mix renovation, share gains and future tariff walks. The broker agent approximates that the following tariff walking will take place in the 2nd half of FY2025.

Despite a loss of 2.9 million subscribers, Bharti Airtel’s earnings growth outpaced that of larger rival Reliance Jio, which lost 11 million subscribers. Experts connect Airtel’s resilience to a shift toward premium subscribers, with a web gain of 0.8 million postpaid individuals. The company reported a 168% boost in internet revenue for Q2, reaching 3,593.2 crore, though it missed estimates due to a single loss connected to currency decline in Nigeria.

Bernstein, in a record, included that the capex intensity is anticipated to find down even more in FY25 as metropolitan 5G rollouts near conclusion. Goldman Sachs claimed declining capex spends ought to equate into over 25% worsened development in free cash flow over the following 3 years, with a boosting returns profile.

“Airtel reported a higher regular monthly spin price at 3.2% in 2Q vs 2.8% in 1Q, yet in spite of that the subscriber base was down by only around 3 million on quarter, revealing more resilience than Reliance Jio,” brokerage Morgan Stanley said in a study report.

In spite of a reduced size of heading tariff hikes and a net loss of 2.9 million customers, Bharti Airtel’s earnings growth was more than bigger competing Dependence Jio’s which lost 11 million subscribers, analysts said, showing a higher resilience from the country’s second biggest telecommunications driver.

Bharti Airtel Tuesday reported that its combined net profit for the fiscal 2nd quarter surged 168% from the year previously as toll walks raised typical income per user (ARPU) yet also brought about subscriber losses. Airtel’s quarterly net earnings stood at Rs 3,593.2 crore, down 13.6% sequentially, missing out on analyst estimates of about Rs 4,311 crore because of an one-time extraordinary loss of Rs 318.3 crore, owing to currency devaluation in Nigeria.

The broker agent added that the telco’s decreasing capex intensity (which dropped 18% sequentially on FY2Q) suggests 4G/5G rollout is nearing conclusion, which will boost the telco’s complimentary cash flow and shareholder payout yet could be a prospective negative for Indus Towers.