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Investing.com - Goldman Sachs has raised its price target on Bharti Airtel Ltd (NSE:BHARTI) to INR2,150.00 from INR2,020.00 while maintaining a Buy rating following the company’s second-quarter fiscal 2026 results.
The telecom operator reported continued strong performance in its wireless segment, with revenue growing over 10% year-over-year despite no meaningful tariff changes, driven by robust postpaid and smartphone customer additions.
Bharti Airtel demonstrated significant operating leverage with its core India EBITDA growing approximately 20% year-over-year on roughly 10% revenue growth, while the company’s return on capital employed improved by 400 basis points year-over-year to reach 13%.
Goldman Sachs forecasts a 16% compound annual growth rate (CAGR) for Bharti’s wireless segment revenue from fiscal 2025 to 2028, which is expected to drive a 22% EBITDA CAGR over the same period.
The investment bank projects the India business is now annualizing approximately US$5 billion in free cash flow, with expectations of a 23% FCF CAGR from fiscal 2025 to 2030, despite the resumption of adjusted gross revenue (AGR) payments starting in fiscal 2026.
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