Airtel revenues likely to grow 13-16% through FY27
Bharti Airtel is slated to deliver 13%-16% growth in consolidated revenues/Ebitda compounded annually through FY24-FY27, propelled by a combination of more frequent tariff hikes, a ramp-up of its 5G-based fixed wireless access (FWA) offerings as well as a steady growth of its non-mobile businesses and Africa operations, analysts said.
They added that reduced capex spends towards 5G and rural network expansion from FY25 onwards is also slated to help the nation's second-largest telco generate substantial free cash flows (FCF) in the next two fiscals.
«With a moderation in capex intensity, Airtel is likely to generate significant free cash flows of ₹33,000 crore-₹43,000 crore in FY25-FY26, which should lead to significant deleveraging and improvement in shareholder returns,» Motilal Oswal said in a research note seen by ET.
Industry experts said the Sunil Mittal-led telco's home broadband business, which saw one of the largest net subscriber additions (583K) during Q2FY25, is set to see further improvement in coming quarters, supported by a sharper focus on leveraging distribution channels. The company's other key priority is driving profitability growth of its enterprise or 'B2B' services business that accounts for 18% of India revenues.
According to analysts, the global business, including messaging, data and voice services, accounts for 50% of Airtel's B2B revenues while the domestic business and data centres garner 40% and 10% respectively.
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