When the quarterly numbers from Bharti Airtel landed this week, it was clear that the telecom major had quietly executed a sharp pivot. Instead of just chasing more subscribers, the company reinforced its grip on deeper engagement and richer revenue per user. The result is a narrative not just of growth, but of transformation.
In the quarter ended September 30, 2025, Airtel reported consolidated revenue of around ₹52,145 crore, a year-on-year jump of about 25.7 %. Moneycontrol+2NSE India+2 EBITDA rose to approximately ₹29,919 crore, up around 35.9 %, and the margin improved to roughly 57.4 %. NSE India+1 Meanwhile consolidated net profit before exceptional items came in at around ₹6,792 crore, up about 89 % from a year ago. The Economic Times
What’s really changing under the hood
Peel back the headline figures and you’ll see a few distinct themes emerging:
Premiumisation of the mobile business. The average revenue per user (ARPU) for India rose to about ₹256, up from roughly ₹233 a year earlier. Moneycontrol+1 What this signals is that Airtel isn’t merely adding users—it is attracting ones who spend more, use more data, and likely demand higher value services.
Smartphone and post-paid traction. The company added millions of new smartphone users, with mobile device penetration and data usage rising. Moneycontrol+1 More importantly, home broadband (via the “Homes” business) and fibre expansion are playing growing roles. An example: the homes business added nearly 9.51 lakh customers this quarter. Moneycontrol
Geographic diversification. The Africa business remains a credible growth pillar. Revenue in constant currency in Africa rose around 24.2 % year-on-year. NSE India+1 That gives Airtel a buffer against India‐only risks.
Capex remains significant. Investment continues strongly: total capex for the quarter was about ₹11,362 crore. NSE India This suggests the company is betting on long-term infrastructure strength rather than short-term cost savings.
Why this matters and what it suggests
From a strategic perspective, Airtel appears to be making a decisive shift away from “lowest price wins” toward “highest value customer wins”. That matters in a market like India where subscriber numbers are already massive and the next phase is about monetisation, retention, and service differentiation.
In fact, analysts are now flagging that the ARPU could head towards the ₹275–300 band over the coming year if the momentum holds. The Economic Times That would mark a meaningful elevation of the business model—and if achieved, could squeeze the margin gap between Indian telecom and developed-market operations.
My view is that this is a smart move. With competition fierce, simply adding basic users won’t cut it any longer. By moving up the value chain—to heavier data users, postpaid customers, home broadband—Airtel is playing for richer yields, not just numbers. However, the flip side is that premium customers expect more—better network performance, newer services, fewer outages—and that raises the bar for execution.
Points of caution
Of course, the story is not entirely smooth sailing. A few caveats:
- The cost of network upgrades is high, and with high investment comes higher risk if returns don’t materialise as planned.
- Richer ARPU means higher expectations and possibly higher churn if service standards slip or if competitors lure away high‐value users.
- External factors—regulation, handset affordability, input cost inflation—could dull the premiumisation strategy.
- While Africa is growing, currency risks and different competitive dynamics can complicate the playbook.
Looking ahead: What to watch
As we move into the next quarters, there are a few metrics and milestones worth tracking for Airtel:
- Will ARPU continue climbing towards ₹275+ or will it plateau?
- How fast can the Homes & broadband business scale, and what margin will it deliver?
- Will competitive pressure force Airtel to discount or slow down the premium push?
- How effectively will the Africa business integrate and deliver profits rather than just growth?
- Will free cash flow rise once the heavy capex phase begins to stabilise?
In sum
This quarter’s performance from Bharti Airtel is more than just good numbers—it is a message. The message: growth in Indian telecom is shifting gears—from volume to value, from plain connectivity to richer engagement. For investors, customers, competitors, that matters.
If Airtel can maintain its elevated ARPU, keep rolling out high‐quality services and smartly manage the cost of infrastructure, it could emerge not just as a growth story but as a margin story. And in a crowded sector where many firms still fight on price, that could give Airtel a meaningful edge.