Bharti Airtel Q1 FY27 Results (NSE: BHARTIARTL)
Signal: Margin expansion
The read
Growth is moderating as expected, but margin expansion continues — 5th consecutive quarter of expanding EBITDA margin, buoyed by Africa's strong performance. The exceptional charge of ₹353 Cr related to an African commercial dispute and the share swap with ICIL (diluting minority but consolidating Africa) are one-offs to monitor.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,853.91 Cr | 18.4% | -72.3% |
| EBIT | ₹1,997.44 Cr | 25.8% | |
| Net profit | ₹816.74 Cr | 37.3% | |
| EPS | ₹13.38 | 30.4% | |
| EBIT margin | 58.4% |
P&L walk
Revenue growth moderated to +18.4% YoY from +25.7% in prior quarter, with EBITDA margin expanding 110bps YoY to 58.4% — driven by Africa's strong performance and cost efficiencies. PAT grew 37.3% YoY, aided by higher EBITDA and lower exceptional charges.
Segments
Mobile Services Africa is the growth engine, with revenue surging 45.4% YoY and segment profit up 56% YoY, while Digital TV remains a laggard with a small loss.
Key positives
- EBITDA grew 20.7% YoY, outpacing revenue growth of 18.4%, with margin expanding 110bps to 58.4% — 5th consecutive quarter of margin expansion.
- Mobile Services Africa revenue jumped 45.4% YoY, driving consolidated growth.
- Net profit grew 37.3% YoY, aided by strong operating performance.
- Share swap increased effective stake in Airtel Africa to 79%, providing long-term upside.
Key concerns
- Revenue growth decelerated to +18.4% YoY from +25.7% in Q4FY26, indicating moderation.
- EPS growth (30.4%) lagged PAT growth (37.3%) due to dilution from the ICIL share swap.
- Digital TV segment recorded a small loss of ₹78 Crore, showing competitive pressure.
Research and educational content only. Not investment advice.