Airtel’s profit grew 31% as each customer paid more, even with no price increase this year. The gap with Jio on revenue per user is now very wide.
Bharti Airtel reported consolidated net profit of ₹8,887.5 crore for the September quarter, up 31% from ₹6,791.6 crore a year earlier and up 9% from the June quarter. Revenue rose 16.7% to ₹60,878 crore from ₹52,145 crore.
Net income before exceptional items rose 32.7% to ₹9,015 crore. EBITDA rose 17.8% to ₹35,240 crore, and the EBITDA margin improved to 57.4% from 57% in the June quarter.
Average revenue per user (ARPU), the most important measure for telecom companies, rose to ₹271 from ₹256 a year earlier. Revenue from the India mobile business grew 10.1%, and total India revenue rose 9.4% to ₹42,308 crore.
The customer base reached about 693 million. The home broadband business grew 25.3%. Airtel also invested ₹2,826 crore in a land parcel for data centre expansion.
The gap with Jio
The most notable comparison is with Jio. Jio Platforms reported ARPU of ₹218.8 for the September quarter. At ₹271, Airtel earns about ₹52 more per user each month, roughly 24% more.
That difference is not because Airtel charges more for the same plans. The two companies’ headline tariffs are similar, and neither has raised prices this year. The gap comes from the mix of customers.
Airtel has focused on what it calls premiumisation: attracting customers who use more data, choose higher-value plans, use postpaid connections or take home broadband. It also benefits from customers upgrading from basic phones to smartphones. Jio, with a much larger base, has more customers on entry-level plans.
That makes Airtel’s growth more resilient. Its ARPU grew 6% from a year earlier without a tariff increase. If the industry does raise prices, which analysts have expected for some time, Airtel’s ARPU could rise sharply on top of that.
A stronger balance sheet
Airtel’s finances have improved substantially. Its consolidated net debt-to-EBITDA ratio fell to 1.18 from 1.63 a year earlier, meaning its debt is now just over one year’s operating profit. That gives Airtel room to invest in 5G, data centres and broadband, while still reducing debt.
The data centre investment matters. Demand for data centre capacity in India is rising fast as companies move to cloud computing and AI. Airtel’s Nxtra data centre business gives it exposure to that trend beyond mobile phones.
What the share price may show
Airtel shares closed down 0.52% at ₹2,056.90 on Thursday, as the results came after or near the close. The reaction will show on Friday.
For investors, the results support Airtel’s position as India’s most profitable mobile operator per customer. Profit is growing quickly, debt is falling and the company is expanding into data centres. The main risk is competition. If Jio, with its large base and newly listed shares, chooses to compete aggressively on price, Airtel’s ARPU growth could slow. For now, though, Airtel is earning more from each customer without having to raise its prices.
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