Airtel Q2 FY26: Profit surges, ARPU hits sector high

Bharti Airtel, India’s second-largest telecom operator, has announced its financial results for the second quarter of the financial year 2025–26 (Q2 FY26), reporting steady growth across several business segments.

During the quarter, the company recorded a net profit of Rs 6,792 crore, a sharp increase compared with Rs 3,911 crore in the corresponding period last year (Q2 FY25). The growth was driven primarily by a robust performance in its mobile services business, supported by a rise in the average revenue per user (ARPU) and continued subscriber additions.

Strong mobile and home business growth

Airtel’s mobile services in India reported a 13.2% year-on-year (YoY) increase in revenue, reflecting sustained demand for data and premium connectivity services. The company’s ARPU, considered a key measure of profitability in the telecom industry, rose to Rs 256, the highest in the sector. This brings Airtel closer to its medium-term target of an ARPU of Rs 300, which it expects to reach through further tariff revisions and enhanced service offerings.

The telco’s home broadband segment also performed strongly, registering a 30.2% YoY growth in revenue. This growth has been supported by the rapid expansion of Airtel’s fibre broadband footprint into new towns and cities, coupled with the increasing demand for high-speed internet connections for remote work, streaming, and smart home usage.

Airtel added 951,000 new customers during the quarter, marking a record high for net additions. The company also reported a strong increase in its smartphone data subscriber base, which grew by 22.2 million YoY and 5.1 million quarter-on-quarter (QoQ). Post-paid subscriptions continued to expand as well, with 950,000 net additions in Q2.

Partnerships and Digital Expansion

In a move to enhance customer experience, Airtel announced a collaboration with Perplexity, an AI technology firm, offering subscribers a complimentary Pro subscription worth Rs17,000 during the quarter. The partnership reflects Airtel’s growing focus on integrating AI-driven solutions and digital value-added services into its ecosystem.

While most business segments performed well, Airtel’s Digital TV business recorded a 0.7% decline in revenue, bringing in Rs 753 crore. Despite the dip, the division maintained a subscriber base of 15.4 million. The company noted that its Internet Protocol Television (IPTV) business continues to gain traction, supported by rising consumer adoption and bundled digital offerings.

B2B and enterprise segment performance

Airtel’s business-to-business (B2B) or enterprise division also reported steady growth, with revenues rising 4.3% sequentially. The company attributed this to increasing demand for data centre and cloud services, areas it considers central to the future expansion of its enterprise business. Airtel’s B2B portfolio includes connectivity, cybersecurity, cloud hosting, and digital communication solutions for large corporates and small and medium enterprises.

Continued investment in 5G and network infrastructure

During the quarter, Airtel’s capital expenditure stood at Rs 9,643 crore, reflecting continued investments in network expansion and 5G rollout across India. The company is also preparing to introduce its 5G Standalone (SA) network, which is expected to deliver higher efficiency, lower latency, and better performance for next-generation applications such as industrial automation, Internet of Things (IoT), and edge computing.

The ongoing 5G deployment, along with Airtel’s investment in fibre infrastructure and data centre capacity, positions the company to capitalise on India’s rapidly growing demand for digital connectivity and cloud-based services.

Bharti Airtel’s strong quarterly performance underscores the company’s ability to maintain growth across core business segments despite competitive pressures in the telecom market. With expanding 5G coverage, increased data usage, and a growing digital ecosystem, the operator remains well placed to sustain revenue momentum and move closer to its long-term ARPU and profitability targets.