Q2 FY2026 Telecom-Service Sector Insights

Telecom-Service Sector Analysis: A Deep Dive into Bharti Airtel Limited's Performance and Market Dynamics

**Summary:** This comprehensive analysis delves into the Telecom-Service sector, primarily through the lens of Bharti Airtel Limited, given the singular focus of the provided investor documents. Bharti Airtel demonstrates robust financial performance, characterized by consistent revenue growth, significant EBITDA and Net Income expansion, and improving profitability margins across both consolidated and India SA operations. The company is actively investing in its network infrastructure, as evidenced by substantial Capex, while simultaneously improving its debt profile and capital efficiency. Projected financials for FY25 indicate continued strong growth and margin expansion, positioning Bharti Airtel as a key player driving the dynamics within the Indian telecom landscape. While a broader industry comparison is constrained by the available data, Bharti Airtel's trajectory offers valuable insights into the health and strategic direction of a leading telecom service provider.

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A. INDUSTRY OVERVIEW & MARKET LANDSCAPE

The Telecom-Service sector, as illuminated by the performance of Bharti Airtel Limited, appears to be in a phase of sustained growth and financial strengthening. While specific market size and segmentation data for the entire industry are not provided, Bharti Airtel's robust performance serves as a strong indicator of underlying positive trends within the broader market, particularly in India and Africa where it operates.

**Geographic Distribution and Regional Dynamics:** Bharti Airtel's operations are geographically diversified, with significant presence in India (referred to as India SA in the financials) and Africa. The provided data offers a more granular view of the India SA segment, highlighting its substantial contribution to the company's overall performance. In Q3'25, India SA alone generated Rs 386,901 Mn in total revenues, representing a 10.6% YoY growth, and an impressive EBITDA of Rs 232,039 Mn, growing at 12% YoY. This segment also boasts a high EBITDA margin of 60.0%, indicating strong operational efficiency and potentially a mature, yet growing, market with significant scale. The consistent investment in Capex within India SA (Rs 96,429 Mn in Q3'25, a 27% YoY growth) suggests ongoing network expansion, technology upgrades, and capacity enhancement to cater to increasing demand and potentially 5G rollout initiatives. While specific financial details for the Africa segment are not available in the provided extract, its mention implies a significant international footprint for Bharti Airtel, contributing to its consolidated figures.

**Market Maturity and Lifecycle Stage:** Based on Bharti Airtel's financial trajectory, the Indian telecom market, at least for leading players, appears to be in a growth-to-maturity stage. The consistent double-digit revenue and EBITDA growth, coupled with expanding margins and improving return ratios, suggests that operators are successfully monetizing their services, possibly through tariff hikes, data consumption growth, and value-added services. The substantial and growing Capex indicates that the market still requires significant investment for network upgrades (e.g., 5G deployment), capacity expansion, and maintaining competitive service quality, preventing it from being a fully mature, low-investment market.

B. FINANCIAL & ECONOMIC PROFILE

Bharti Airtel Limited exhibits a strong and improving financial profile, characterized by consistent top-line growth, expanding profitability, and enhanced capital efficiency. The company's financial metrics reflect a healthy operational environment and effective strategic execution.

**Industry Aggregate Revenue Scale and Growth Trajectory (Proxied by Bharti Airtel):** Bharti Airtel's consolidated total revenues have shown a consistent upward trajectory, indicating robust demand for telecom services. * **FY23:** Rs 1,539,257 Mn * **FY24:** Rs 1,643,643 Mn (7% YoY growth) * **FY25 (Projected):** Rs 1,815,110 Mn (10.4% YoY growth from FY24)

Quarterly data further illustrates this growth momentum: * Q3'24: Rs 448,963 Mn * Q4'24: Rs 468,780 Mn * Q1'25: Rs 478,762 Mn * Q2'25: Rs 494,626 Mn * Q3'25: Rs 521,454 Mn (16% YoY growth compared to Q3'24) * 6 Months Ended Q3'25: Rs 1,016,080 Mn (17% YoY growth)

The India SA segment also demonstrates strong revenue growth: * Q3'25: Rs 386,901 Mn (10.6% YoY growth)

This consistent growth, accelerating in recent quarters and projected for FY25, suggests a healthy demand environment, potentially driven by increased data consumption, subscriber additions, and possibly tariff rationalization.

**Profitability Levels (Proxied by Bharti Airtel):** Bharti Airtel has significantly improved its profitability across all key metrics, indicating strong operational leverage and effective cost management.

• **EBITDA (Consolidated):**

• **EBITDA Margin (Consolidated):** The margin has consistently expanded, reflecting improved operational efficiency and potentially better pricing power.

• **EBIT (Consolidated):**

• **EBIT Margin (Consolidated):**

• **Net Income (before exceptional items) (Consolidated):** Demonstrates significant growth, indicating strong bottom-line performance.

• **Net Income (after exceptional items) (Consolidated):** While FY24 saw a dip due to exceptional items, FY25 projects a massive recovery and growth.

**India SA Profitability (Q3'25):** * EBITDA: Rs 232,039 Mn (12% YoY growth) * EBITDA Margin: 60.0% (0.6 pp YoY improvement) * EBIT: Rs 121,919 Mn (16% YoY growth) The India SA segment's higher EBITDA margin (60.0% in Q3'25) compared to the consolidated margin (57.4%) suggests that the Indian operations are particularly efficient and profitable, potentially offsetting lower margins in other geographies or business segments.

**Return Profiles (Proxied by Bharti Airtel):** Bharti Airtel's return ratios demonstrate improving capital efficiency and shareholder value creation.

• **Return on Shareholder's Equity (Post Tax) (Consolidated):**

• **Return on Capital Employed (Annualised) (Consolidated):**

**Capital Intensity Requirements:** The telecom sector is inherently capital-intensive, requiring continuous investment in network infrastructure. Bharti Airtel's Capex figures reflect this ongoing need.

• **Capex (Consolidated):**

• **India SA Capex (Q3'25):** Rs 96,429 Mn (27% YoY growth). This indicates significant investment specifically within the Indian market, likely for 5G rollout and network densification.

Despite high Capex, the company's Operating Free Cash Flow (EBITDA - Capex) has shown strong growth, indicating its ability to generate sufficient cash internally to fund investments and reduce debt. * **Operating Free Cash Flow (EBITDA - Capex) (Consolidated):** * FY23: Rs 386,233 Mn * FY24: Rs 399,796 Mn (3.5% YoY growth) * FY25 (Projected): Rs 627,090 Mn (56.8% YoY growth from FY24) * Q3'24: Rs 165,126 Mn * Q3'25: Rs 185,567 Mn (12% YoY growth) * 6 Months Ended Q3'25: Rs 384,165 Mn (29% YoY growth) The projected surge in Operating Free Cash Flow for FY25 is particularly noteworthy, driven by both strong EBITDA growth and a projected moderation in Capex, leading to significantly improved cash generation.

C. COMPETITIVE STRUCTURE & DYNAMICS

Given the data is limited to Bharti Airtel, a detailed analysis of the competitive structure and dynamics of the entire telecom sector is not possible. However, Bharti Airtel's strong financial performance, particularly its expanding margins and improving debt profile, suggests that it is effectively navigating the competitive landscape and potentially gaining market share or improving its pricing power.

**Competitive Intensity Assessment (Inferred from Bharti Airtel's Performance):** The consistent growth in revenues and, more importantly, the significant expansion in EBITDA and EBIT margins, suggest that Bharti Airtel operates in an environment where it can command better pricing or achieve superior operational efficiencies. The 0.6 pp YoY improvement in consolidated EBITDA margin to 57.4% in Q3'25, and a 1.7 pp YoY improvement in EBIT margin to 32.0%, indicate a favorable competitive position. In the India SA segment, an even higher EBITDA margin of 60.0% with a 0.6 pp YoY improvement further underscores strong market positioning and potentially reduced competitive pressure or increased ARPU (Average Revenue Per User, though not explicitly provided). This could be a result of industry consolidation, rationalized pricing, or superior network quality leading to customer stickiness.

**Pricing Power Dynamics and Pricing Trends (Inferred):** The robust revenue growth (16% YoY in Q3'25 consolidated, 10.6% YoY in India SA) coupled with margin expansion strongly implies that Bharti Airtel has been able to implement effective pricing strategies, possibly through tariff increases, premiumization of services, or increased data consumption leading to higher value per user. The significant growth in Net Income (69% YoY before exceptional items in Q3'25) further supports the notion of improved monetization.

**Competitive Advantages (Bharti Airtel):** Based on the financials, Bharti Airtel's competitive advantages likely include: 1. **Strong Brand and Market Position:** Evidenced by consistent revenue growth and ability to expand margins. 2. **Operational Efficiency:** Reflected in high and improving EBITDA margins (57.4% consolidated, 60.0% India SA in Q3'25). 3. **Robust Network Infrastructure:** Indicated by significant and ongoing Capex investments, ensuring capacity and quality. 4. **Financial Discipline:** Demonstrated by declining Net Debt to EBITDA ratios and strong operating free cash flow generation, allowing for strategic investments while managing leverage. 5. **Geographic Diversification:** Presence in both India and Africa provides a broader revenue base and hedges against single-market risks.

D. OPERATIONAL CHARACTERISTICS

Bharti Airtel's operational characteristics, as inferred from its financial performance, highlight a focus on efficiency, network expansion, and disciplined capital deployment.

**Production Economics and Cost Structures (Inferred):** The continuous improvement in EBITDA and EBIT margins suggests effective cost management and operational leverage. As revenues grow, the incremental costs are likely lower, leading to a disproportionate increase in profitability. The India SA segment's 60.0% EBITDA margin is particularly indicative of a highly optimized cost structure within its core market. This could be due to economies of scale, efficient network operations, or successful digital transformation initiatives.

**Technology Landscape and Innovation Pace (Inferred):** The substantial Capex, particularly the 27% YoY growth in India SA Capex for Q3'25, strongly suggests ongoing investment in advanced technologies. This is likely driven by the rollout of 5G networks, expansion of fiber infrastructure, and upgrades to existing 4G networks to handle increasing data traffic. Such investments are critical for maintaining competitive edge and catering to evolving customer demands for speed and connectivity.

**Operational Efficiency Benchmarks (Bharti Airtel):** * **EBITDA Margin:** Consolidated EBITDA margin improved from 49.9% in FY23 to 54.1% in FY24, projected to reach 57.8% in FY25. Quarterly, it improved from 56.8% in Q3'24 to 57.4% in Q3'25. The India SA segment boasts an even higher 60.0% EBITDA margin in Q3'25. These figures represent strong operational efficiency within the telecom sector. * **EBIT Margin:** Consolidated EBIT margin improved from 24.0% in FY23 to 27.5% in FY24, projected to reach 31.4% in FY25. Quarterly, it improved from 30.2% in Q3'24 to 32.0% in Q3'25. This indicates effective management of depreciation and amortization, which are significant costs in a capital-intensive industry.

**Key Performance Indicators (Bharti Airtel):** Beyond the core financial metrics, the company's focus on debt reduction and improving leverage ratios are key operational and financial KPIs. * **Net Debt to EBITDA (Annualised) (Consolidated):** Significantly improved from 2.66x in FY23 to 2.19x in FY24, projected to reach 1.94x in FY25. In Q3'25, it stood at 1.63x, a notable improvement from 2.01x in Q3'24. This indicates strong deleveraging and improved financial health. * **Net Debt (excluding Lease obligations) to EBITDAAL (Annualised) (Consolidated):** Also improved from 2.35x in FY23 to 1.86x in FY24, projected to reach 1.48x in FY25. In Q3'25, it was 1.19x, down from 1.60x in Q3'24. This metric, which excludes lease liabilities, shows an even stronger improvement in core debt management. * **Interest Coverage Ratio (Consolidated):** Improved from 5.49x in FY23 to 5.79x in FY24, projected to reach 6.21x in FY25. In Q3'25, it was 6.62x, up from 6.09x in Q3'24. This indicates a significantly enhanced ability to cover interest expenses, reducing financial risk.

E. GROWTH DYNAMICS & DRIVERS

Bharti Airtel's growth dynamics are robust, driven by a combination of factors that contribute to both top-line expansion and enhanced profitability.

**Historical Growth Trajectory (Bharti Airtel):** * **Revenue Growth:** Consolidated revenues grew by 7% from FY23 to FY24, with a projected acceleration to 10.4% from FY24 to FY25. Quarterly growth has been even stronger, with Q3'25 showing a 16% YoY increase. * **EBITDA Growth:** Consolidated EBITDA grew by 15.7% from FY23 to FY24, projected to accelerate to 18.1% from FY24 to FY25. Quarterly, Q3'25 saw a 17% YoY increase, and the 6 months ended Q3'25 recorded a 20% YoY growth. * **Net Income Growth (before exceptional items):** This metric shows the most significant acceleration, growing by 41.0% from FY23 to FY24, and projected to surge by 52.8% from FY24 to FY25. Quarterly, Q3'25 recorded a 69% YoY growth, and the 6 months ended Q3'25 saw an 81% YoY growth.

**Current Growth Rates and Acceleration:** The data clearly shows an acceleration in growth rates across key financial metrics, particularly in the most recent quarters (Q3'25 and 6 Months Ended Q3'25) and in the FY25 projections. This acceleration is evident in: * Consolidated Revenue growth: 16% YoY in Q3'25. * Consolidated EBITDA growth: 17% YoY in Q3'25. * Consolidated Net Income (before exceptional items) growth: 69% YoY in Q3'25. This indicates strong current momentum and positive future outlook.

**Volume vs Price Contribution to Growth (Inferred):** While specific ARPU or subscriber volume data is not provided, the combination of strong revenue growth and expanding margins suggests that both volume (e.g., increased data consumption, subscriber additions) and price (e.g., tariff hikes, premium service adoption) are likely contributing to growth. The significant margin expansion points towards a healthy pricing environment or superior service mix.

**Geographic Expansion Opportunities and Progress:** Bharti Airtel's presence in Africa, alongside its strong India SA performance, highlights its strategy of geographic diversification. While specific financial details for Africa are missing, the consolidated figures encompass this international footprint. Continued growth in these diverse markets can provide resilience and additional growth avenues.

**Adjacent Market Opportunities (Inferred):** While not explicitly stated, the "Telecom-Service" sector often includes adjacent opportunities such as enterprise solutions, fixed broadband, digital services, and IoT. Bharti Airtel's overall growth and investment in network infrastructure likely support expansion into these high-growth areas, leveraging its core connectivity business.

F. RISK LANDSCAPE

The provided data, being purely financial performance metrics for one company, does not explicitly detail the risk landscape for the telecom sector or Bharti Airtel. However, certain inherent risks can be inferred or are generally applicable to the sector.

**Industry-wide Systematic Risks (Inferred):** * **Capital Intensity:** The need for continuous, substantial Capex (e.g., Rs 489,268 Mn in FY24, Rs 422,904 Mn projected for FY25 consolidated, and Rs 96,429 Mn in Q3'25 for India SA) is a significant systemic risk. Failure to invest adequately can lead to network degradation and loss of competitiveness, while over-investment can strain finances. * **Technological Obsolescence:** Rapid advancements in technology (e.g., transition from 4G to 5G) necessitate continuous upgrades, posing a risk of stranded assets or high upgrade costs if not managed effectively. * **Spectrum Costs:** Acquisition and renewal of spectrum licenses are major expenses and can be highly competitive, impacting financial health. * **Economic Sensitivity:** While telecom services are generally resilient, severe economic downturns can impact consumer spending on higher-tier plans or new connections.

**Regulatory and Policy Risks by Geography (Inferred):** The telecom sector is heavily regulated. Changes in government policies regarding spectrum allocation, licensing fees, interconnection charges, or consumer tariffs can significantly impact profitability. For a company like Bharti Airtel operating in multiple geographies (India and Africa), this risk is compounded by varying regulatory frameworks.

**Competitive Threats (Inferred):** Despite Bharti Airtel's strong performance, the telecom sector is typically characterized by intense competition. While the data suggests Bharti Airtel is performing well, the presence of other major players (not detailed here) means ongoing pressure on pricing, service quality, and innovation. The need for continuous Capex to maintain network quality is a direct response to this competitive pressure.

**Customer Concentration Risks:** While not explicitly mentioned, a large subscriber base typically diversifies this risk. However, reliance on specific high-value customer segments (e.g., enterprise clients) could introduce some concentration risk.

G. CAPITAL ALLOCATION & INVESTOR RETURNS

Bharti Airtel demonstrates a disciplined and effective capital allocation strategy, balancing significant growth investments with debt reduction and improving shareholder returns.

**Capex Trends and Requirements:** Bharti Airtel's Capex reflects its commitment to network expansion and technology upgrades. * **Consolidated Capex:** Increased from Rs 382,145 Mn in FY23 to Rs 489,268 Mn in FY24 (28% growth), before a projected moderation to Rs 422,904 Mn in FY25 (-13.5% change). This pattern suggests a period of intense investment, possibly for 5G rollout, followed by a more normalized spending phase. * **India SA Capex:** Rs 96,429 Mn in Q3'25, showing a 27% YoY growth, indicating continued heavy investment in the core Indian market. The company's ability to generate strong Operating Free Cash Flow (EBITDA - Capex) despite high Capex is crucial. The projected increase in Operating Free Cash Flow to Rs 627,090 Mn in FY25 (a 56.8% YoY growth) highlights improved capital efficiency and cash generation after a period of heavy investment.

**Cash Generation and Free Cash Flow Profiles:** Operating Free Cash Flow (EBITDA - Capex) is a critical metric for capital-intensive businesses. Bharti Airtel's performance here is strong: * FY23: Rs 386,233 Mn * FY24: Rs 399,796 Mn * FY25 (Projected): Rs 627,090 Mn * Q3'25: Rs 185,567 Mn (12% YoY growth) * 6 Months Ended Q3'25: Rs 384,165 Mn (29% YoY growth) The significant projected increase in OFCF for FY25 suggests that the company is moving towards a phase where its investments are yielding substantial cash returns, which can be used for further debt reduction, dividends, or other strategic initiatives.

**Capital Efficiency Improvements:** The improvement in Net Debt to EBITDA ratios and Return on Capital Employed (ROCE) are direct indicators of enhanced capital efficiency. * **Net Debt to EBITDA (Annualised) (Consolidated):** Decreased from 2.66x in FY23 to 1.63x in Q3'25, with a projection of 1.94x for FY25. This substantial deleveraging indicates effective debt management and improved financial health. * **Net Debt (excluding Lease obligations) to EBITDAAL (Annualised) (Consolidated):** Decreased from 2.35x in FY23 to 1.19x in Q3'25, with a projection of 1.48x for FY25. This further reinforces the deleveraging trend. * **Interest Coverage Ratio (Consolidated):** Improved from 5.49x in FY23 to 6.62x in Q3'25, projected to reach 6.21x in FY25. This indicates a stronger ability to service debt. * **Return on Capital Employed (Annualised) (Consolidated):** Improved from 13.0% in FY23 to 18.9% in Q3'25, projected to reach 17.3% in FY25. This shows that the company is generating more profit for every unit of capital employed.

These metrics collectively portray a company that is not only growing but also becoming more financially robust and efficient in its capital deployment.

H. FUTURE OUTLOOK & PROJECTIONS

The future outlook for Bharti Airtel, and by extension, the segment of the Telecom-Service sector it represents, appears highly positive, characterized by continued growth, margin expansion, and improved financial health.

**Industry Growth Projections (Proxied by Bharti Airtel's Guidance):** Bharti Airtel's FY25 projections serve as a strong indicator of expected industry trends for leading players. * **Revenue Growth:** Projected to grow by 10.4% in FY25 to Rs 1,815,110 Mn. * **EBITDA Growth:** Projected to grow by 18.1% in FY25 to Rs 1,049,994 Mn. * **Net Income (before exceptional items) Growth:** Projected to grow by 52.8% in FY25 to Rs 177,611 Mn. * **Net Income (after exceptional items) Growth:** Projected to grow by a massive 333.6% in FY25 to Rs 337,440 Mn, indicating a significant rebound and strong underlying profitability.

**Expected Margin Evolution (Bharti Airtel):** * **EBITDA Margin:** Projected to reach 57.8% in FY25, up from 54.1% in FY24. * **EBIT Margin:** Projected to reach 31.4% in FY25, up from 27.5% in FY24. These projections suggest that Bharti Airtel expects to continue improving its operational efficiency and pricing power, leading to further margin expansion.

**Long-term Structural Trends (Inferred):** The sustained Capex and strong growth indicate that structural trends like increasing data consumption, smartphone penetration, and the rollout of advanced networks (like 5G) are powerful tailwinds for the sector. The focus on deleveraging suggests a move towards a more sustainable financial model for telecom operators, allowing them to fund future growth organically.

**Potential Disruptions on the Horizon:** While not explicitly mentioned, potential disruptions could include: * **New Technologies:** Emergence of satellite internet or other disruptive connectivity solutions. * **Regulatory Changes:** Unfavorable policy shifts or increased taxation. * **Intensified Competition:** Aggressive pricing by competitors or entry of new players. However, Bharti Airtel's strong financial position and ongoing investments suggest it is well-prepared to navigate these potential challenges.

I. COMPANY-BY-COMPANY PROFILES

Bharti Airtel Limited

**Company Description:** Bharti Airtel Limited is a leading global telecommunications company with operations in 17 countries across Asia and Africa. It offers mobile, fixed-line, broadband, and digital television services, along with enterprise solutions. The company is a prominent player in the Indian telecom market (India SA) and has a significant presence in the African continent.

**Scale Metrics:** * **Total Revenues (Consolidated):** * FY23: Rs 1,539,257 Mn * FY24: Rs 1,643,643 Mn * FY25 (Projected): Rs 1,815,110 Mn * Q3'25: Rs 521,454 Mn * 6 Months Ended Q3'25: Rs 1,016,080 Mn * **Market Capitalization (Consolidated):** * FY23: Rs 4,320 Bn (US$ 52.5 Bn) * FY24: Rs 7,273 Bn (US$ 87.2 Bn) * FY25 (Projected): Rs 10,378 Bn (US$ 121.3 Bn) * Q3'25: Rs 11,262 Bn (US$ 126.9 Bn) * **Enterprise Value (Consolidated):** * FY23: Rs 6,362 Bn (US$ 76.9 Bn) * FY24: Rs 9,216 Bn (US$ 111.4 Bn) * FY25 (Projected): Rs 12,416 Bn (US$ 145.9 Bn) * Q3'25: Rs 13,209 Bn (US$ 148.8 Bn) * **Shareholder's Equity (India SA):** Rs 1,184,600 Mn (Q3'25)

**Financial Performance Summary:** Bharti Airtel has demonstrated exceptional financial performance, marked by consistent growth and improving profitability.

• **Revenue Growth:** Consolidated revenues grew 7% in FY24 and are projected to grow 10.4% in FY25. Q3'25 saw a strong 16% YoY growth. India SA revenues grew 10.6% YoY in Q3'25.
• **Profitability:**
• **Returns:**
• **Debt Profile:**

**Strategic Priorities and Focus Areas (Inferred):** 1. **Network Expansion and Modernization:** Evidenced by substantial Capex (Rs 489,268 Mn in FY24, Rs 96,429 Mn in India SA for Q3'25), likely focused on 5G rollout, fiber deployment, and enhancing 4G capacity. 2. **Profitability and Margin Expansion:** Consistent improvement in EBITDA and EBIT margins indicates a focus on operational efficiency, cost optimization, and potentially tariff rationalization or premiumization of services. 3. **Deleveraging and Financial Health:** Significant reduction in Net Debt to EBITDA ratios and improvement in interest coverage highlight a strategic focus on strengthening the balance sheet. 4. **Cash Flow Generation:** Strong growth in Operating Free Cash Flow (projected 56.8% YoY growth in FY25) indicates a focus on generating robust internal cash to fund investments and reduce debt. 5. **Geographic Strength:** Continued strong performance in India SA, coupled with presence in Africa, suggests a strategy of leveraging core market strengths while maintaining a diversified international footprint.

**Competitive Advantages and Positioning:** Bharti Airtel is positioned as a market leader with strong operational efficiency and financial discipline. Its ability to grow revenues, expand margins, and simultaneously reduce leverage in a capital-intensive industry underscores its competitive strength. The high EBITDA margin in India SA (60.0%) suggests a dominant and efficient position in its home market. Its ongoing investments ensure it remains at the forefront of technological advancements, particularly in 5G.

**Key Metrics and KPIs Specific to the Company:** * **Consolidated Revenue Growth:** 16% YoY in Q3'25. * **Consolidated EBITDA Margin:** 57.4% in Q3'25. * **India SA EBITDA Margin:** 60.0% in Q3'25. * **Net Debt to EBITDA (Annualised):** 1.63x in Q3'25. * **Operating Free Cash Flow (EBITDA - Capex):** Rs 185,567 Mn in Q3'25. * **Return on Capital Employed (Annualised):** 18.9% in Q3'25.

**Management Outlook and Guidance:** Management's projections for FY25 indicate a highly optimistic outlook: * Consolidated Revenues to reach Rs 1,815,110 Mn (10.4% growth). * Consolidated EBITDA to reach Rs 1,049,994 Mn (18.1% growth), with a margin of 57.8%. * Consolidated Net Income (before exceptional items) to reach Rs 177,611 Mn (52.8% growth). * Consolidated Operating Free Cash Flow to reach Rs 627,090 Mn (56.8% growth). * Net Debt to EBITDA (Annualised) to further improve to 1.94x.

**Recent Developments and Initiatives (Inferred):** The significant Capex growth, especially in India SA, strongly suggests ongoing aggressive rollout of 5G services and expansion of network coverage and capacity to meet surging data demand. The consistent improvement in financial metrics indicates successful execution of strategic initiatives aimed at enhancing monetization, operational efficiency, and balance sheet strength.

J. TABLES

Bharti Airtel Limited - Consolidated Financial Metrics Summary

| Metric | FY23 (Mn Rs) | FY24 (Mn Rs) | FY25 (Projected) (Mn Rs) | Q3'24 (Mn Rs) | Q4'24 (Mn Rs) | Q1'25 (Mn Rs) | Q2'25 (Mn Rs) | Q3'25 (Mn Rs) | 6 Months Ended Q3'25 (Mn Rs) | YoY Growth Q3'25 | | :-------------------------------------------- | :----------- | :----------- | :----------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | :--------------------------- | :--------------- | | **Total Revenues** | 1,539,257 | 1,643,643 | 1,815,110 | 448,963 | 468,780 | 478,762 | 494,626 | 521,454 | 1,016,080 | 16% | | **EBITDA** | 768,378 | 889,064 | 1,049,994 | 255,125 | 290,567 | 274,043 | 281,668 | 299,190 | 580,858 | 17% | | **EBITDA Margin (%)** | 49.9% | 54.1% | 57.8% | 56.8% | - | - | - | 57.4% | 57.2% | 0.6 pp | | **EBIT** | 369,224 | 452,044 | 569,567 | 135,749 | - | - | - | 166,691 | 322,900 | 23% | | **EBIT Margin (%)** | 24.0% | 27.5% | 31.4% | 30.2% | - | - | - | 32.0% | - | 1.7 pp | | **Net Income (before exceptional items)** | 82,390 | 116,201 | 177,611 | 40,243 | - | - | - | 67,916 | 127,395 | 69% | | **Net Income (after exceptional items)** | 82,526 | 77,820 | 337,440 | 37,060 | - | - | - | 67,916 | 127,395 | 83% | | **Capex** | 382,145 | 489,268 | 422,904 | 89,999 | - | - | - | 113,623 | 196,693 | 26% | | **Operating Free Cash Flow (EBITDA - Capex)** | 386,233 | 399,796 | 627,090 | 165,126 | - | - | - | 185,567 | 384,165 | 12% |

Bharti Airtel Limited - Consolidated Debt & Coverage Ratios

| Metric | FY23 (x) | FY24 (x) | FY25 (Projected) (x) | Q3'24 (x) | Q3'25 (x) | YoY Change Q3'25 | | :-------------------------------------------- | :------- | :------- | :------------------- | :-------- | :-------- | :--------------- | | **Net Debt (Mn Rs)** | 2,042,234| 1,943,799| 2,038,384 | 2,056,204 | 1,947,131 | -5% | | **Net Debt (excl. Lease obligations) (Mn Rs)**| 1,570,684| 1,452,207| 1,385,086 | 1,446,995 | 1,266,513 | -12% | | **Net Debt to EBITDA (Annualised)** | 2.66x | 2.19x | 1.94x | 2.01x | 1.63x | - | | **Net Debt (excl. Lease) to EBITDAAL (Annualised)** | 2.35x | 1.86x | 1.48x | 1.60x | 1.19x | - | | **Interest Coverage Ratio** | 5.49x | 5.79x | 6.21x | 6.09x | 6.62x | - |

Bharti Airtel Limited - Consolidated Return Ratios & Valuation Metrics

| Metric | FY23 (%) | FY24 (%) | FY25 (Projected) (%) | Q3'24 (%) | Q3'25 (%) | | :-------------------------------------------- | :------- | :------- | :------------------- | :-------- | :-------- | | **Return on Shareholder's Equity (Post Tax)** | 24.8% | 19.0% | 34.5% | 14.4% | 32.4% | | **Return on Capital Employed (Annualised)** | 13.0% | 14.8% | 17.3% | 17.6% | 18.9% |

| Metric | FY23 (Bn Rs / x) | FY24 (Bn Rs / x) | FY25 (Projected) (Bn Rs / x) | Q3'25 (Bn Rs / x) | | :-------------------------------------------- | :--------------- | :--------------- | :--------------------------- | :---------------- | | **Market Capitalization** | 4,320 (US$ 52.5) | 7,273 (US$ 87.2) | 10,378 (US$ 121.3) | 11,262 (US$ 126.9)| | **Enterprise Value** | 6,362 (US$ 76.9) | 9,216 (US$ 111.4)| 12,416 (US$ 145.9) | 13,209 (US$ 148.8)| | **P/E Ratio** | 48.92x | 91.89x | 29.37x | 27.77x |

Bharti Airtel Limited - India SA Financials (Q3'25)

| Metric | Q3'25 (Mn Rs) | YoY Growth Q3'25 | | :-------------------------------------------- | :------------ | :--------------- | | **Total revenues** | 386,901 | 10.6% | | **EBITDA** | 232,039 | 12% | | **EBITDA Margin** | 60.0% | 0.6 pp | | **EBIT** | 121,919 | 16% | | **Capex** | 96,429 | 27% | | **Operating Free Cash Flow (EBITDA - Capex)** | 135,610 | 3% | | **Net Debt** | 1,457,913 | - | | **Shareholder's Equity** | 1,184,600 | - |