Airtel gains ground as users prioritise network quality

Bharti Airtel’s India operations delivered steady revenue and subscriber growth in the quarter ended 31 December 2025, supported by rising data usage, network expansion, and continued customer additions. However, the period also reflected pressure on margins and rising costs, particularly at the consolidated level.

Revenue and Customer Growth

During Q3’25, Airtel’s India revenues rose to Rs 392.3 billion, up 7.8% from Rs 364.0 billion in the corresponding quarter last year. Although this growth was moderate compared with consolidated revenue growth of 15.2%, it reflected stable performance in the domestic market amid competitive and regulatory pressures.

The mobile customer base increased to 368.5 million from 356.6 million a year earlier, representing year-on-year growth of 3.4%. Smartphone users rose more sharply to 291.0 million, with net additions of 20.8 million over the year, supporting higher data consumption and monetisation.

Voice traffic grew by 2.6% year-on-year to 1,266 billion minutes, indicating stable usage patterns. At the same time, data traffic rose by 29.2% to 26,056 million GBs. Average monthly data usage per customer increased to 29.8 GB from 24.5 GB, highlighting the continued shift towards data-led consumption.

Mobile Services: Improving Profitability

Mobile services remained the main contributor to India revenues. Segment revenues increased by 9.1% year-on-year to Rs 286.5 billion, while average revenue per user stood at Rs 259, reflecting stable pricing and higher data usage.

EBITDA from mobile services rose to Rs 173.3 billion from Rs 154.6 billion a year earlier, with margins improving to 60.5% from 58.8%. Margins remained broadly stable compared with the previous quarter, indicating operational discipline despite rising costs.

EBIT increased to Rs 90.8 billion from Rs 75.0 billion last year, with margins improving to 31.7% from 28.5%. Capital expenditure in mobile services stood at Rs 44.0 billion, reflecting continued investment in coverage and capacity, including the addition of around 1,100 new towers.

Homes Services: Rapid Expansion

Airtel’s Homes segment recorded the fastest growth among its India businesses. Revenues rose by 32.6% year-on-year to Rs 20.0 billion, driven by strong broadband and fixed-line additions. The customer base increased to 13.1 million, up 41.8% from the previous year, with net additions of approximately 1.16 million during the quarter.

EBITDA grew to Rs 10.0 billion from Rs 7.5 billion, with margins at 50.1%. However, EBIT margins declined to 15.4% from 21.8% a year earlier, reflecting higher operating and expansion costs. Capital expenditure for the segment was Rs 16.1 billion, underlining Airtel’s focus on scaling its wired and partnership-based footprint.

Digital TV: Flat Revenues and Margin Pressure

The Digital TV business remained largely stable in terms of revenues, which stood at Rs 7.6 billion, broadly unchanged from last year. The customer base reached 15.4 million, while ARPU was Rs 163.

Profitability weakened during the quarter. EBITDA declined to Rs 3.5 billion from Rs 4.4 billion a year earlier, and margins fell sharply to 46.0% from 58.2%. The segment reported an EBIT loss of Rs 636 million, compared with a loss of Rs 606 million in the previous quarter. Capital expenditure remained modest at Rs 3.3 billion.

Airtel Business: Revenue Decline, Margin Improvement

The B2B segment reported revenues of Rs 53.5 billion, down 5.2% year-on-year, mainly due to the exit from low-margin businesses. Despite the decline in revenue, profitability improved.

EBITDA increased by 13.1% to Rs 22.4 billion, and margins expanded to 41.9% from 35.2% last year. EBIT rose to Rs 15.6 billion, with margins improving to 29.1%. Capital expenditure for Airtel Business stood at Rs 7.6 billion, reflecting selective investment in core connectivity and digital services.

Network Expansion and Infrastructure

Airtel continued to strengthen its domestic network. By the end of the quarter, it operated 343,486 towers and more than 1.17 million mobile broadband base stations, compared with 334,757 towers and 1.10 million base stations a year earlier. This expansion supported rising data traffic and improved service quality.

Its passive infrastructure arm, Indus Towers, reported revenues of Rs 81.5 billion, up from Rs 75.5 billion last year. However, EBITDA declined sharply to Rs 46.1 billion from Rs 70.8 billion, reflecting margin compression. EBITDA margins fell to 56.6% from 93.8%, indicating higher costs and structural adjustments in the tower business.

Consolidated Performance and Margin Trends

At the consolidated level, Airtel reported EBITDA of Rs 311.4 billion, up 7.2% year-on-year, while margins declined to 57.7% from 62.0%. India EBITDA margins also fell to 60.4% from 66.0%, highlighting cost pressures across segments.

EBIT margins declined to 32.7% from 36.0%, largely due to higher depreciation, amortisation, and operating expenses linked to network investments and regulatory changes.

Net income before exceptional items rose to Rs 69.2 billion from Rs 54.9 billion last year, reflecting improved operational performance. However, net income after exceptional items declined sharply due to one-off charges related to new labour codes and tax adjustments.

Capital Investment and Financial Position

Consolidated capital expenditure for the quarter stood at Rs 117.9 billion, with significant investments directed towards mobile, homes, and infrastructure segments in India.

Net debt excluding lease obligations declined to Rs 1,124.9 billion from Rs 1,336.8 billion a year earlier. The net debt-to-EBITDA ratio improved to 1.02 times from 1.28 times, indicating a stronger balance sheet and improved financial flexibility.

Market Position and Customer Response

Airtel’s India operations in Q3’25 showed steady growth in revenues, subscribers, and data usage, supported by continued network investments and rising smartphone penetration. Mobile and Homes services remained key growth drivers, while Airtel Business delivered margin improvements despite lower revenues.

The results indicate that Airtel is consolidating its position as a data-led telecom operator, with users increasingly relying on its network for everyday connectivity, entertainment, and work. Rising smartphone adoption, higher average data consumption, and consistent growth in broadband subscribers suggest that customers are responding positively to improved coverage, faster speeds, and more reliable service.

Stable ARPU levels show that many subscribers are willing to pay for better quality and bundled services, rather than switching solely on price. This reflects a broader shift in user behaviour, in which reliability, digital services, and integrated offerings are becoming more important than low-cost plans alone.

Shifting Competition Towards Network Quality

Airtel’s Q3 FY26 results also suggest that competition in the telecom sector is gradually moving away from tariff-led strategies towards overall network experience. Customers are placing greater emphasis on call quality, data speeds, and service consistency.

Most users experience network performance daily. Whether calls drop, videos buffer, or downloads slow down directly affects perceptions of service quality. Airtel’s continued investment in towers, fibre, and technology appears to be translating into a more stable and dependable user experience.

In telecom, good service is often noticed by the absence of disruption. Fewer outages, smoother browsing, and reliable connectivity matter more than visible upgrades. Airtel’s latest quarterly figures suggest that it is making steady progress in this direction, helping to strengthen customer confidence in a highly competitive market.