Bharti Airtel Ltd has delivered a formidable sequential achieve of two.4% in common income per person (Arpu) for the September quarter (Q2FY26), rising to ₹256. Compared, Reliance Jio reported a modest 1.2% development to ₹211.4.
What explains Airtel’s sooner Arpu development? Two key components stand out. First, its 2G person base—derived by subtracting 4G and 5G subscribers from whole cellular customers—fell 4.5% quarter-on-quarter to 78.37 million. As extra 2G prospects migrate to higher-priced 4G/5G plans that supply larger information utilization, general Arpu rises.
Second, Airtel continues to learn from a better proportion of post-paid customers than Jio. Its post-paid base grew 3.6% sequentially to 27.52 million in Q2. Submit-paid prospects are usually premium subscribers who generate stronger Arpu. Notably, Jio neither discloses its post-paid base nor has any 2G subscribers.
The query now’s whether or not Airtel’s Arpu can shock additional. That appears possible. Even now, 2G customers make up 21% of Airtel’s whole cellular subscriber base, and their gradual shift to 4G/5G plans will maintain supporting Arpu development. Its post-paid base, too, has expanded by 12% over the previous yr, a development prone to proceed.
Excluding Arpu positive aspects, which drove Airtel’s India wi-fi income up 2.6% sequentially, the opposite income lever, quantity or subscriber development, was tepid at 0.4%. The Arpu uptick helped raise the wi-fi section’s Ebitda (earnings earlier than curiosity, taxes, depreciation and amortization) margin by 90 foundation factors quarter-on-quarter to 60.3% as working leverage improved.
Capital allocation focus
Past these working metrics, Airtel’s latest capital allocation selections advantage nearer consideration. The board has authorized the acquisition of as much as a further 5% stake in Indus Towers Ltd, implying a possible money outlay of round ₹5,000 crore primarily based on Indus’s newest market capitalization. Indus is already a subsidiary of Bharti with 51% holding, which suggests the latter’s financials are totally consolidated into Airtel’s accounts. A better stake, due to this fact, gained’t alter Airtel’s reported consolidated income or Ebitda.
Airtel additionally has ample administration management over Indus. So, why elevate its stake additional? Within the Q2FY26 earnings name, Airtel’s administration said that they’re taking a look at Indus as a powerful dividend-paying asset. Nonetheless, Indus’s capacity to pay beneficiant dividends, no less than within the close to future, has already turn into questionable after it not too long ago introduced that it could broaden into the tower enterprise in Africa.
Individually, Airtel has additionally indicated curiosity in growing its stake in Airtel Africa Plc—one other potential money outflow, albeit one which could possibly be comfortably funded by its sturdy wi-fi money era.
One other notable takeaway from the Q2 name was Airtel’s plan to strategy the federal government for a recalculation of adjusted gross income (AGR) associated dues, following the Supreme Court docket’s ruling within the Vodafone Thought case. Airtel at the moment owes the federal government about ₹40,000 crore in AGR liabilities. Nonetheless, it seems unlikely that Vodafone Thought’s case will set a precedent, on condition that the federal government is each a creditor and the bulk shareholder in that firm.
For buyers, any potential AGR aid stays speculative. As a substitute, consideration could quickly shift to Jio’s upcoming IPO and its valuation—developments that would affect Airtel’s market re-rating. The Airtel inventory has already gained 34% up to now in 2025, outperforming 8% returns of the Nifty 50. But, its valuation stays cheap at an EV/Ebitda a number of of 10 instances primarily based on FY27 estimates from Motilal Oswal Monetary Providers.
