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NEW DELHI - Bharti Airtel (NSE:BRTI), one of India’s leading telecommunications companies, reported strong financial results for the third quarter of fiscal year 2025, with average revenue per user (ARPU) growth outpacing its rival Jio.
The company’s ARPU increased by 5% quarter-over-quarter (QoQ) to INR 245, compared to Jio’s 4% QoQ growth. This robust performance was attributed to the flow-through of tariff hikes and customer upgrades to smartphones and postpaid plans. Bharti Airtel’s wireless subscriber base grew by 4.9 million QoQ to 356.6 million, while mobile revenue increased by 5.8% QoQ.
Wireless EBITDA margins improved significantly, expanding by 170 basis points QoQ to 58.8%. The company’s 4G and 5G data subscriber base saw healthy growth, increasing by 6.5 million QoQ to reach 270.2 million, up 10.3% year-over-year (YoY).
Gopal Vittal, CEO of Bharti Airtel, commented on the results, stating, "Our focus on delivering superior network experience and innovative services continues to drive our growth, as evidenced by our strong ARPU performance and subscriber additions."
Capital expenditure intensity decreased, with consolidated CapEx at INR 91.6 billion, down 22.6% YoY. This reduction in capital spending contributed to a 21.6% QoQ and 126% YoY growth in operating free cash flow.
The company’s homes business revenue grew by 5.4% QoQ and 18.7% YoY to INR 15.1 billion, with subscribers increasing by 0.67 million QoQ to 9.2 million. Airtel Business revenue remained relatively flat at INR 56.5 billion, down 0.2% QoQ but up 8.6% YoY.
Bharti Airtel also recorded a one-time exceptional gain of INR 143.2 billion due to the consolidation of Indus Towers, including fair valuation of its existing stake.
Analysts at Bernstein praised the company’s performance, noting Bharti Airtel’s "best in class ARPU, moderating capex & solid free cashflow generation."
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