Bharti Airtel Q3 Results: Net Profit Up 505%, ARPU Hits Rs 245
Bharti Airtel Q3 Results
Bharti Airtel Q3 FY25 Results: Net Profit Surges by 505%, ARPU Climbs to Rs 245 in December Quarter
Bharti Airtel, one of India’s largest telecommunications providers, has unveiled its results for the third quarter of FY25, showing an outstanding financial performance for the October-December period.
The company’s consolidated net profit experienced an astronomical increase of 505% year-on-year, soaring to Rs 14,781 crore.
This sharp rise compared to Rs 2,442 crore in the same quarter the previous year demonstrates the company’s strength amid a competitive telecom landscape.
However, despite these impressive results, the company’s shares witnessed a dip of 2.47%, closing at Rs 1619.55 on February 6, after the results were released post-market hours.
The release of these results highlights Bharti Airtel’s ability to grow its revenue, improve its profit margins, and expand its subscriber base, particularly in its mobile and broadband sectors.
Let’s break down the key figures and performance metrics that have contributed to this remarkable performance, as well as insights from company leadership on its growth strategies.
Revenue Performance: Strong Growth Across Key Segments
Bharti Airtel’s revenue for Q3 FY25 surged by 19% to reach Rs 45,129 crore, compared to Rs 37,900 crore in the same quarter of FY24.
This robust growth in revenue was driven by higher demand for telecom services, strategic pricing adjustments, and an expanded subscriber base.
A significant contributor to this growth was a one-time gain of Rs 7,546 crore, which had a positive impact on Airtel’s financials for the quarter.
This extraordinary gain came from asset sales, business divestitures, and other one-off events, giving a significant boost to overall earnings for the quarter.
The company’s mobile business, both in India and Africa, played a key role in driving up revenue.
India’s telecom market, particularly, continues to see strong demand, while Airtel’s African operations are also on a consistent growth trajectory, as mobile and data penetration continues to increase across the continent.
Average Revenue Per User (ARPU): A Key Performance Indicator
One of the standout metrics for Bharti Airtel in Q3 was the substantial increase in its Average Revenue Per User (ARPU), which jumped to Rs 245.
This represents a significant improvement over the Rs 190 ARPU recorded in previous quarters. The growth in ARPU reflects both an increase in tariffs and a higher proportion of premium subscribers across both mobile and broadband services.
Airtel’s ARPU increase is especially notable in the context of the highly competitive nature of India’s telecom market, where multiple players offer similar services.
The increase in ARPU demonstrates Airtel’s ability to attract and retain high-value customers who are willing to pay more for enhanced services, such as 4G and 5G connectivity, as well as premium content offerings.
This ARPU increase places Bharti Airtel at the top of the industry, giving it an edge over competitors in terms of profitability per user.
The company’s ability to consistently grow ARPU shows that its strategy of premiumizing its customer base and providing high-quality service has been effective.
Profitability: Net Profit Soars by 505%
Bharti Airtel’s net profit for Q3 FY25 soared to Rs 14,781 crore, a staggering increase of 505% compared to Rs 2,442 crore in Q3 FY24.
This growth in profitability was driven not only by higher revenue but also by the company’s cost-efficiency measures and improved operational performance.
A key factor in this dramatic rise in profit was the one-time gain of Rs 7,546 crore, which played a significant role in boosting the bottom line.
However, even excluding this gain, Airtel’s core business performance demonstrated substantial improvement, underpinned by higher data consumption, a growing customer base, and higher revenue from both mobile and broadband services.
The significant growth in profit also reflects Bharti Airtel’s ability to drive efficiencies in its operations, reducing costs even as it continued to expand its service offerings.
The company’s EBITDA margin, which stood at 54%, is a testament to this operational efficiency and profitability.
Bharti Airtel’s Performance vs. Market Expectations
Bharti Airtel’s third-quarter results exceeded market expectations, highlighting the company’s ability to deliver consistent growth even amid macroeconomic headwinds.
Analysts had anticipated a doubling of the company’s consolidated net profit to Rs 5,039 crore, representing a 100% year-on-year growth.
Similarly, revenues were expected to grow by around 16% to Rs 43,874 crore, and an EBITDA margin of 54% was forecasted.
However, Airtel far outperformed these expectations. The actual net profit of Rs 14,781 crore was more than double the predicted figures, while revenue growth of 19% also surpassed analysts’ estimates.
This performance underscores the company’s strong position in the market and its ability to navigate the competitive and regulatory challenges in the telecom sector.
Regional Growth: India and Africa Performing Well
Airtel’s India operations performed strongly in Q3, with revenue growth of 4.8% sequentially, excluding the consolidation of Indus Towers.
The company continues to benefit from a combination of factors, including tariff hikes, the expansion of 4G and 5G networks, and a growing number of premium subscribers.
In the African market, Bharti Airtel also recorded robust growth, with constant currency revenue increasing by 5.6%.
Africa remains a key growth region for Airtel, as mobile and broadband penetration continues to rise, particularly in underserved markets.
The company’s ability to scale in Africa further strengthens its position as a leading telecom player in both developed and emerging markets.
Leadership Insights: Gopal Vittal’s Commentary
In a statement following the release of the results, Bharti Airtel Vice Chairman and Managing Director Gopal Vittal expressed satisfaction with the company’s performance.
He said, “We delivered another consistently good quarter with consolidated revenue of Rs 45,129 crore. This quarter also marks the consolidation of Indus Towers, which has had a positive impact on our overall performance.”
Vittal highlighted the continued growth in India’s mobile business, which benefited from tariff improvements and an increase in premium customers.
He also pointed to Airtel’s success in adding 6.5 million new smartphone users in the quarter, a testament to the company’s focus on acquiring high-quality customers and driving portfolio premiumization.
The Vice Chairman also emphasized Airtel’s strategic focus on expanding its customer base in both India and Africa, improving network capabilities, and delivering enhanced services across all product categories.
Final Remarks: Strong Growth and Leadership in Telecom
Bharti Airtel’s third-quarter results for FY25 highlight the company’s continued dominance in the telecom sector, both in India and internationally.
With a combination of strong revenue growth, an increase in ARPU, and remarkable profitability, the company is well-positioned to maintain its leadership in the highly competitive telecommunications industry.
While Bharti Airtel’s stock experienced a slight dip post-results, its solid performance and continued growth in both mobile and broadband sectors demonstrate its resilience and capacity to deliver value for both customers and shareholders.
With ongoing investments in network expansion, premiumization, and regional growth, Bharti Airtel remains a key player to watch in the coming quarters.
As the telecom sector continues to evolve, Bharti Airtel’s ability to leverage both organic growth and strategic acquisitions—such as the consolidation of Indus Towers—will likely play a critical role in sustaining its competitive edge.
The company’s strong fundamentals, along with its focus on delivering high-quality service and growing its premium customer base, ensure that it remains well-positioned for long-term success.
