Bharti Airtel's Q4 net profit slips 23 pc, sales up as India market grows

The company’s net profit dropped to Rs 12,475.8 crore from Rs 16,134.6 crore in the previous quarter (Q3), according to its stock exchange filing.

The profit decline was largely driven by a shift from a tax gain of Rs 757.3 crore in Q3 to a tax expense of Rs 2,891.9 crore in Q4, putting pressure on the bottom line despite revenue growth.

The telecom major’s revenue from operations grew 6.1 per cent quarter-on-quarter (QoQ) to Rs 47,876.2 crore in Q4, up from Rs 45,129.3 crore in Q3.

The increase was supported by solid momentum in the India market, a rebound in Africa’s reported currency revenues, and the full-quarter impact of Indus Towers consolidation.

However, one segment that saw a pullback was Airtel Business, which posted a 2.7 per cent year-on-year (YoY) decline in revenue.

This was due to a deliberate move to phase out low-margin services like global wholesale commodity voice and messaging.

The company said this strategic transformation is part of its broader goal to focus on higher-value, sustainable business areas.

In India, quarterly revenues grew by 6 per cent to Rs 36,735 crore, supported by better realisations in the mobile segment and strong performance in the homes business.

Average revenue per user (ARPU) rose to Rs 245 in Q4, up from Rs 209 in the same quarter last financial year -- reinforcing Airtel’s premiumisation strategy.

The company’s homes business saw impressive growth, with a 21.3 per cent jump in revenue YoY, helped by strong customer additions and accelerated fiber and home-pass expansion.

The company added over 800,000 new customers during the quarter, bringing the total base to 10 million.

Vice-Chairman and MD Gopal Vittal said the company ended the financial year on a strong note, despite the dip in profit.

He added that Airtel remains focused on premium growth areas, supported by solid cash generation and disciplined capital spending.

Airtel also prepaid Rs 5,985 crore in high-cost spectrum dues last quarter, bringing total prepayments to over Rs 42,000 crore in the past two years, which has strengthened the balance sheet.