Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It?

Bharti Airtel’s stock surged nearly 4% after reporting a massive 483% YoY increase in Q3 net profit to ₹14,760 crore, driven by Indus Towers consolidation and ARPU growth to ₹245. Analysts remain bullish, with a ₹2,400 target price over three years, citing potential tariff hikes and strong free cash flow growth. The company’s revenue rose 19% YoY to ₹45,129 crore, while EBITDA improved to ₹24,880 crore.

 

CONTENTS:

• Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It?
• Bharti Airtel Reports Over Five-Fold Surge in Net Profit to ₹16,134.6 Crore
• Stocks to Watch on February 7
• Stocks to Watch: ITC, Bharti Airtel, Hero MotoCorp, Britannia, NCC, Apollo Tyres, and More
• Market Overview

 

Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It?

Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It?

Stock Market Update: Bharti Airtel’s stock saw a nearly 4% jump in early trade on Friday following the release of its Q3 earnings report, which was announced after market hours on Thursday.

 

Q3 Financial Highlights

Bharti Airtel reported a significant profit surge, primarily driven by a one-time gain from Indus Towers becoming its subsidiary in November. The telecom giant posted a net profit of ₹14,760 crore for the quarter ending December, marking a 483% increase from ₹2,530 crore in the same period last year.

 

The company recorded an extraordinary net gain of ₹9,267 crore, which included:

• ₹14,322.5 crore from Indus Towers consolidation
• ₹128.5 crore from reversal of provisions related to input tax credit on passive infrastructure
• ₹1,193.6 crore in foreign exchange gains

 

However, these gains were partially offset by:

• Regulatory levies of ₹6,358.6 crore
• An impairment charge of ₹1,740.4 crore on intangible assets

 

Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 24% to ₹24,880 crore, while consolidated revenue for the quarter grew by 19% year-over-year to ₹45,129 crore. The EBITDA margin also improved to 55.1% from 52.9% a year earlier.

 

Analysts’ Take on Bharti Airtel

Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It? Market analysts have maintained a positive outlook on Bharti Airtel, citing rising average revenue per user (ARPU). The company reported an ARPU of ₹245 for Q3, up from ₹208 in Q3FY24.

JM Financial Institutional Securities reaffirmed its high-conviction BUY rating for Bharti Airtel, with a one-year target price of ₹1,850 and a three-year target of ₹2,400, implying a 14% internal rate of return (IRR).

The brokerage expects Bharti Airtel to benefit significantly from potential tariff hikes in India’s wireless sector, especially with Jio also needing higher ARPU to justify its substantial 5G investments and a potential IPO. JM Financial believes that higher tariffs and reduced capital expenditure will drive Bharti’s free cash flow growth from FY25, potentially making it a net cash company by FY29, compared to its current net debt (excluding lease liabilities) of ₹1,33,700 crore at the end of Q3FY25.

 

Key Takeaways: Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It?

• Strong profit surge due to Indus Towers consolidation
• ARPU growth supports a positive long-term outlook
• Analysts project a 14% IRR over three years with a ₹2,400 target price
• Potential tariff hikes could further benefit Bharti Airtel

 

Bharti Airtel Reports Over Five-Fold Surge in Net Profit to ₹16,134.6 Crore

Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It? Bharti Airtel on Thursday announced a remarkable five-fold increase in its consolidated net profit, reaching ₹16,134.6 crore for the December quarter. This surge was driven by the consolidation of the Indus Towers business and the impact of tariff hikes flowing into the financials.

In comparison, the telecom giant had posted a consolidated profit of ₹2,876.4 crore in the same quarter last year.

 

Strong Revenue Growth & ARPU Expansion

Bharti Airtel’s revenue from operations climbed 19% year-over-year to ₹45,129.3 crore, up from ₹37,899.5 crore in the previous year’s corresponding period.

A key financial indicator, Average Revenue Per User (ARPU), saw a significant rise, reaching ₹245 in the December quarter, up from ₹208 a year ago.

 

The company’s India business revenue surged 24.6% annually to ₹34,654 crore, fueled by:

• Tariff adjustments in the mobile segment
• Strong growth in its home services business
• The impact of Indus Towers consolidation

 

Exceptional Gains & Forex Benefits: Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It?

Bharti Airtel recorded a net exceptional gain of ₹7,545.6 crore, which included:

• ₹14,322.5 crore from the Indus Towers business combination
• ₹1,193.6 crore in foreign exchange gains, attributed to currency appreciation in its subsidiaries
• ₹128.5 crore from input tax credit on passive infrastructure services

The company’s net income before exceptional items stood at ₹5,514 crore.

 

Management’s Perspective: Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It?

Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It? Commenting on the company’s performance, Gopal Vittal, Vice Chairman & MD of Bharti Airtel, stated:

“Indus Towers consolidation took effect this quarter. India revenue (excluding Indus) saw a sequential growth of 4.8%. Our India mobile segment delivered a strong performance, supported by tariff adjustments and premiumization. We continue to lead the industry in ARPU growth, reaching ₹245 this quarter.”

With a strong financial outlook and continued growth momentum, Bharti Airtel remains a key player in India’s telecom sector.

 

Stocks to Watch on February 7

Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It? Key stocks to keep an eye on today:

• Bharti Airtel reported a net profit of ₹14,781 crore for Q3 FY25, with an adjusted PAT growth of 121% YoY to ₹5,514 crore.

 

• Ramco Cements posted Q3 revenue of ₹1,976.6 crore, reflecting a 6.1% YoY decline due to muted demand and pricing pressures.

 

• Apollo Tyres saw a 32.1% decline in net profit to ₹337.2 crore, missing estimates, despite a 5% YoY increase in revenue.

 

• PI Industries reported a 16.9% drop in net profit to ₹372.7 crore, with revenue remaining flat at ₹1,900.8 crore.

 

• Zomato announced plans to rebrand as Eternal Ltd., expanding beyond food delivery.

 

• NCC recorded a 12.5% YoY decline in net profit to ₹193.2 crore, while revenue rose 1.6% to ₹5,344.5 crore.

 

• Motherson Sumi Wiring posted a 16.6% decline in net profit to ₹140 crore, though revenue grew 8.8% YoY.

 

• Cochin Shipyard saw a 27.6% YoY decline in net profit to ₹177 crore, with revenue rising 8.6% to ₹1,147.6 crore.

 

• Aurobindo Pharma reported a 9.7% dip in net profit to ₹845.8 crore, missing analyst estimates.

 

• ITC posted a net profit of ₹5,638.3 crore, exceeding expectations, driven by rural demand recovery.

 

• Britannia reported a 4.8% YoY profit growth to ₹582.3 crore, benefiting from price hikes.

 

• Bikaji Foods saw a 14.5% increase in revenue but faced margin contraction due to inflation.

 

• Sobha recorded a 44.7% YoY rise in net profit to ₹21.7 crore, supported by strong project deliveries.

 

• Gulf Oil Lubricants posted a 21.7% rise in net profit to ₹98.2 crore, reaching its highest quarterly revenue.

 

• Sonata Software reported a 1.4% QoQ drop in profit after tax to ₹105 crore.

 

• Religare Enterprises is involved in a legal battle over an open offer, with investor Digvijay Gaekwad challenging the Burmans’ stake increase.

 

• GMM Pfaudler posted a 43.6% YoY profit growth to ₹41.5 crore, despite a 6.4% decline in revenue.

 

• Indus Towers will acquire 16,100 telecom towers from Bharti Airtel and Bharti Hexacom in a ₹3,308.7 crore deal.

 

• Somany Ceramics recorded a 58.7% decline in net profit to ₹10 crore, impacted by lower margins.

 

• PG Electroplast posted a 109% YoY rise in net profit to ₹40.1 crore, with revenue surging 81.9%.

 

• JK Lakshmi Cement saw a 59.7% drop in net profit to ₹60.46 crore, with revenue falling 12%.

 

• Hero MotoCorp reported a 12.1% YoY rise in net profit to ₹1,202.8 crore, surpassing analyst estimates.

 

These stocks are expected to remain in focus today based on their latest financial results and strategic developments.

 

Stocks to Watch: ITC, Bharti Airtel, Hero MotoCorp, Britannia, NCC, Apollo Tyres, and More

Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It? Overview of stocks expected to be in focus in today’s trading session.

 

ITC: Diversified conglomerate ITC Ltd reported a 7% year-on-year (YoY) decline in consolidated net profit for the quarter ending December 31, 2024, amounting to ₹4,935 crore. In the same quarter last year, the company posted a profit of ₹5,335 crore. However, revenues increased by 8% YoY to ₹20,350 crore. ITC also announced an interim dividend of ₹6.50 per share for FY25, with a record date of February 12 and payment scheduled between March 6 and March 8.

 

Hero MotoCorp: The two-wheeler manufacturer reported a 12% growth in standalone net profit for Q3FY25, reaching ₹1,203 crore compared to ₹1,073 crore in the same period last year. Revenue from operations increased by 5% YoY to ₹10,211 crore. Hero MotoCorp declared an interim dividend of ₹100 per equity share, with February 12 as the record date and payment expected by March 8.

 

Bharti Airtel: The telecom giant recorded a significant increase in net profit, reaching ₹14,781 crore in Q3FY25. However, excluding exceptional items, adjusted profit after tax grew 121% YoY to ₹5,514 crore from ₹2,442 crore in the same quarter last year. Operating revenue rose 19% YoY to ₹45,129 crore, supported by strong growth in India and stable performance in Africa. Airtel’s average revenue per user (ARPU) climbed to ₹245 from ₹208 in the previous fiscal’s Q3.

 

Britannia Industries: The FMCG major posted a 4.5% YoY increase in consolidated net profit for Q3FY25 at ₹582 crore, up from ₹556 crore a year earlier. Revenue from operations grew 8% YoY to ₹4,593 crore. For the nine-month period ending December 2024, consolidated sales reached ₹13,159 crore, marking a 5% YoY increase, while net profit rose 1.3% to ₹1,619 crore.

 

NCC: Infrastructure company NCC Ltd reported a 12.5% YoY drop in net profit for Q3FY25, at ₹193.2 crore compared to ₹220.7 crore in the same quarter last year. However, revenue from operations showed a slight 1.6% increase, reaching ₹5,344.5 crore.

 

Additional Stocks in Focus: Bharti Airtel Shares Surge 4% After Strong Q3 Results – Do You Own It?

• REC: The company recorded 13.5% loan growth during the October-December period, with full-year projections of 15-17%. Q3 net profit grew 23.2% YoY to ₹4,029 crore, and Net Interest Income (NII) stood at ₹4,855 crore, a 17% increase.

 

• Bharti Hexacom: Reported a 23% YoY rise in net profit to ₹261 crore, with revenue increasing 25% YoY to ₹2,251 crore.

 

• Cochin Shipyard: Posted a 27% decline in consolidated net profit to ₹177 crore, while revenue rose 9% YoY to ₹1,148 crore. Declared a second interim dividend of ₹3.5 per share for FY25.

 

• PI Industries: Reported a 16.9% drop in net profit to ₹372.7 crore, with revenue remaining flat at ₹1,900.8 crore. Announced an interim dividend of ₹6 per share.

 

• Apollo Tyres: Recorded a 32.1% decline in net profit to ₹337.2 crore due to weaker operating performance. Revenue grew 5% YoY to ₹6,928 crore.

 

• Ramco Cements: Reported a 6.1% decline in revenue to ₹1,976.6 crore, with EBITDA falling 29.3% due to weak demand.

 

• Aadhar Housing Finance: Registered a 17.17% YoY rise in consolidated net profit to ₹239.34 crore, with total income growing 18.51%.

 

• Aurobindo Pharma: Reported a 9.7% YoY decline in net profit to ₹845.8 crore, while revenue rose 8.5% to ₹7,978.5 crore.

 

• Brightcom Group: SEBI imposed a ₹34 crore penalty on the company and its promoters for financial misrepresentation.

 

 

Market Overview

• GIFT Nifty futures indicate a positive start, trading at 23,715, up 26 points from Nifty50 futures.
• Asian markets:
  • Shanghai Composite and Hang Seng gained 0.44% each.
  • Japan’s Nikkei declined 0.43%.
  • Kospi rose 0.078%.
  • Asia Dow was down 0.18%.
• US Markets:
  • Nasdaq up 0.51%, S&P 500 up 0.36%.
  • Dow Jones declined 0.28%.

 

Indian Stock Market Performance (Thursday, Feb 6, 2025)

• Sensex closed 213.12 points lower (-0.27%) at 78,058.16.
• Nifty50 fell 92.95 points (-0.39%) to 23,603.35.

Stocks to Watch

Earnings Announcements Today

• Life Insurance Corporation of India (LIC), Mahindra & Mahindra, Mazagon Dock Shipbuilders, Oil India, NHPC, Alkem Laboratories, Fortis Healthcare, Ola Electric Mobility, Gujarat State Petronet, Akzo Nobel India, Balrampur Chini Mills, Cholamandalam Financial Holdings, Delhivery.

 

Key Company Updates

• Hero MotoCorp: Reported 1.3% YoY profit growth (₹1,107.5 crore), revenue up 4.8% at ₹10,259.8 crore.

 

• ITC: Net profit declined 7.27% YoY to ₹5,013.16 crore, revenue rose 9.05% to ₹20,349.96 crore.

 

• Vakrangee: Partnered with Tata AIG to offer general insurance products.

 

• Bharti Airtel: Net profit surged 505% YoY to ₹14,781 crore, revenue up 19.07% at ₹45,129 crore.

 

• Max India: Approved an investment of ₹219 crore in subsidiaries.

 

• State Bank of India (SBI): Net profit jumped 84.32% YoY to ₹16,891 crore, NII grew 4.09% YoY to ₹41,446 crore.

 

• Biocon: Reported positive Phase 2 trial results for Itolizumab in treating ulcerative colitis.

 

• Dr. Reddy’s Labs: Signed a $131.6 million deal with Henlius Biotech for Daratumumab.

 

• Aurobindo Pharma: Profit fell 10% YoY to ₹845.56 crore, while revenue hit a record ₹7,978.52 crore (+8.5% YoY).

 

• BSE Ltd: Net profit doubled to ₹220 crore, highest-ever quarterly revenue of ₹835.4 crore (+94% YoY).

 

• Indus Towers: Acquiring 16,100 telecom towers from Bharti Airtel & Bharti Hexacom for ₹3,310 crore.

 

• Britannia Industries: Net profit at ₹582 crore, revenue at ₹4,593 crore.

 

• IndiGo: Exploring additional aircraft leasing from Norse Atlantic.