Airtel profit rises fivefold, revenue misses estimates

Profit jump due to deferred tax benefit; revenue per user remains flat at ₹245

- Jatin Grover

Bharti Airtel Ltd clocked a fivefold jump in March quarter profit thanks to a one-time gain, even as revenue per user, a key metric of profitability, remained flat.

Net profit at India's second-largest telecom operator stood at ₹11,022 crore against ₹2,072 crore a year earlier, as it added a deferred tax benefit of ₹5,913 crore. However, compared to the December quarter when it gained from the Indus Towers consolidation, profit was 25.4% lower.

Consolidated Q4 revenue of ₹47,876 crore was up 27.3% on-year and 6.1% on-quarter, driven by higher India business, revenue growth in Africa, and the full impact of Indus Towers consolidation.

The India mobile services business, which contributes 56% to overall revenues, saw revenue growth of 20.6% on-year to ₹26,617 crore, driven by higher tariffs, smartphone user additions and premiumization efforts, the company said.

Airtel Business, which houses services to enterprises and contributes 11% to total revenue, fell 2.7% YoY to ₹5,315 crore. Overall, the revenue figures missed estimates of ₹49,200 crore, according to average estimates of five brokerage firms.

"Airtel Business revenue moderation was in line with our strategy outlined last quarter to shed our low-margin wholesale business while underlying growth continues to remain steady," vice-chairman and managing director Gopal Vittal said, adding Airtel ended FY25 "on a strong note."