Bharti Airtel Q2 FY27 Results: Revenue Rises 16.7%, ARPU Reaches ₹271 as Costs Remain in Focus

7 November 2026 | Curated by Gurdeep Singh, Amritsar, Punjab

Bharti Airtel reported a strong operating performance for the September 2026 quarter, with consolidated revenue rising 16.7% year-on-year to ₹60,878 crore. The telecom operator also reported higher average revenue per user (ARPU), record postpaid customer additions and improved operating margins. Yet the results carried a caution: higher network and licence costs weighed on reported earnings, and the company’s profit figure needs to be read with care because its release separately presents net income before exceptional items.

The results for the second quarter of FY2026–27, ended 30 September 2026, were approved on 5 November. They offer a useful view of how premium mobile plans, data consumption, homes broadband, enterprise services and Africa operations are contributing to Airtel’s growth.

Q2 FY27: Key numbers at a glance

Reported net profit was around ₹8,887 crore, up approximately 31% from ₹6,791 crore a year earlier, according to financial reporting. This differs from the company’s ₹9,015 crore net income before exceptional items; the two measures should not be treated as interchangeable.

Revenue growth across India and Africa

Consolidated revenue increased to ₹60,878 crore from ₹52,145 crore in the year-ago quarter. The 4% sequential rise from ₹58,539 crore indicates that growth continued over the previous quarter as well. Airtel attributed the performance to momentum in both India and Africa.

India business revenue reached ₹42,308 crore, up 9.4% year-on-year and 2.7% quarter-on-quarter. Mobile revenue in India grew 10.1% year-on-year, supported by higher ARPU and additions of smartphone data customers. The homes business and Airtel Business also contributed, with reported year-on-year revenue growth of 25.3% and 11.4%, respectively.

ARPU rises to ₹271: why the figure matters

Average revenue per user, or ARPU, measures the average monthly revenue generated per customer. It is a closely watched indicator for telecom operators because it helps show whether customer growth and plan upgrades are translating into higher revenue per connection.

Airtel’s mobile ARPU rose to ₹271 from ₹256 in Q2 FY26 and from ₹264 in Q1 FY27. The year-on-year improvement was about 5.9%. The company linked the trend to its focus on premiumising its mobile portfolio and attracting higher-value customers.

ARPU is not the same as profit per user. Operators must still pay for spectrum, network operations, customer acquisition, technology, licences and other expenses. A higher ARPU is positive, but its effect on profitability depends on how quickly costs rise alongside revenue.

Customer additions and data usage

Airtel reported a total customer base of approximately 693 million across 15 countries. Its India customer base reached about 498.7 million, up 10.9% year-on-year. The smartphone data customer base expanded by 18.8 million over the year, while data consumption per customer in India increased to 36.5 GB per month from 28.3 GB.

The company added 1.2 million postpaid customers during the quarter, taking its postpaid base to more than 31.2 million. It also reported 676,000 additions in its homes business. These indicators matter because postpaid, broadband and enterprise services can deepen customer relationships and support a broader revenue mix.

Profitability improves, but operating costs need watching

Consolidated EBITDA rose 17.8% year-on-year to ₹35,240 crore, while the EBITDA margin improved to 57.9% from 57.4%. EBITDA is an operating-profit measure before interest, tax, depreciation and amortisation; it is useful for comparing operating performance, but it is not the same as cash profit or net income.

At the same time, network operation and maintenance costs increased 11% to ₹11,214 crore, while licence fees rose 13% to ₹4,320 crore, according to reported figures. Total expenses increased around 15%. These cost pressures help explain why the headline growth in revenue did not translate into an equally strong result against some analyst expectations.

For investors, the key issue is whether revenue from higher-value customers, data usage, broadband and enterprise services can continue growing faster than the costs of running and expanding the network.

Debt, investment and the data-centre strategy

Airtel reported net debt of ₹88,277 crore excluding lease obligations, down from ₹1.26 trillion a year earlier. Its annualised net debt-to-EBITDA ratio improved to 1.18 from 1.63 at the end of September 2025. The company also reported consolidated capital expenditure of ₹12,467 crore during the quarter, including ₹9,908 crore in India.

Separately, Airtel invested ₹2,826 crore in a strategic land parcel for its data-centre expansion. The company has described data centres and financial services as important potential growth areas. These investments may create new revenue opportunities over time, but they also require substantial capital and disciplined execution.

What the results mean for the telecom sector

Airtel’s numbers underline the importance of customer quality, data consumption and premium plans in India’s telecom market. Higher ARPU and postpaid additions suggest that operators can grow revenue through a richer customer mix, not only by adding connections. However, network investment, spectrum-related obligations and operating expenses remain significant.

The quarter also highlights the different drivers within Airtel: mobile services, homes broadband, enterprise connectivity, digital services and Africa operations. A diversified business can provide multiple growth engines, although performance may vary between markets and segments.

What investors should watch next

• ARPU trajectory: Whether Airtel can sustain improvements without relying excessively on plan changes.
• Network costs: Whether operating and maintenance expenses moderate as revenue expands.
• Customer mix: Continued additions in postpaid, smartphone data and homes broadband.
• Capital expenditure: Returns from network upgrades and the data-centre investment programme.
• Debt and cash generation: Whether balance-sheet improvement continues while the company funds expansion.
• Competition and tariffs: Pricing actions across the sector and their impact on customer retention and ARPU.

Conclusion: strong operating momentum, with costs still in focus

Bharti Airtel’s Q2 FY27 results show solid revenue growth, higher ARPU, strong customer additions and improved EBITDA margins. The India business remains central, while Africa, homes broadband and enterprise services add further momentum. The improvement in reported debt metrics is another constructive feature.

The main watchpoint is the cost of sustaining that growth. Network operations, licence fees, capital expenditure and new investments will influence how much of the additional revenue ultimately reaches shareholders as net earnings and cash flow. Airtel’s next few quarters will show whether premiumisation and diversified services can keep delivering profitable growth.

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