Bharti Airtel Shares Drop 1.6% as Company Launches 'Airtel Money Limited'; Analysts See Strong Q1 Outlook

Telecom major Bharti Airtel shares are back in the spotlight this morning after the company announced the incorporation of a new wholly owned step-down subsidiary named Airtel Money Limited to strengthen its digital financial services play.

Despite the positive development, Bharti Airtel shares opened lower on July 10. The stock opened at Rs. 2,028.60 but slipped sharply during early trade. As of 11:00 AM, it was trading at Rs. 1,987.30, down 1.60%. The stock has declined 7.05% in the past month, 23.03% over the past 6 months, and 37.57% over the last year.

What Is Airtel Money Limited?

In a regulatory filing dated July 9, Bharti Airtel announced the incorporation of Airtel Money Limited, a financial services entity with an initial paid-up capital of Rs. 1 lakh and authorised capital of Rs. 10 lakh. The company received its Certificate of Incorporation on July 8, 2025, and will operate in the financial services space, likely supporting Airtel's broader ambitions in digital payments, fintech, and wallet services.

Airtel & Telecom Sector Q1 FY26 Expectations

According to Centrum Broking, the telecom sector is expected to see a 2% QoQ increase in ARPU (Average Revenue Per User) driven by ongoing migration from 2G to 4G/5G and more calendar days in the quarter.

Bharti Airtel is projected to add 3 million new subscribers, taking its total user base to 365 million, with ARPU expected to grow to Rs. 250/month, maintaining its position as industry leader in ARPU.

Centrum also anticipates 2.7% sequential revenue growth for Airtel in Q1 FY26. The firm has reiterated a buy rating for Bharti Airtel with a target price of Rs. 2,168, citing strong fundamentals and a more favourable pricing environment following recent tariff hikes by all major operators.

Market Outlook: All Eyes on Tariff & 5G Monetisation

With over 90% district coverage in 5G services, Bharti Airtel and Reliance Jio are expected to continue gaining market share from struggling rival Vodafone Idea. Analysts also expect another 12-15% tariff hike by the end of FY26, which could further boost Airtel's revenue and ROCE profile.

In the last reported quarter, i.e., Q4 FY25, Bharti Airtel posted a consolidated net profit of Rs. 11,022 crore, which was down 25.4% from Rs. 14,781 crore in Q3 FY25. Revenue rose 2.1% sequentially to Rs. 47,876 crore, exceeding expectations, while EBITDA stood at Rs. 27,404 crore, down 5.7% QoQ. The EBITDA margin came in at 57.2%, slightly lower than the previous quarter. Notably, ARPU rose to Rs. 245, up 17.2% YoY, while mobile data usage per user jumped 21.2%, reaching 25.1 GB/month.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial, investment, or credit advice. The views and recommendations mentioned are based on publicly available data and expert opinions at the time of writing. Neither the author nor GoodReturns endorses any specific product or financial decision. GoodReturns.in and its affiliates are not responsible for any loss or damage resulting from reliance on the information presented.