Bharti Airtel's Profit Jumps 31% to ₹8,888 Crore as ARPU Climbs to ₹271 and Its Data Centre Ambitions Take Shape

Bharti Airtel, India's second-largest telecom operator, reported a 31% rise in quarterly profit as it earned more from each customer and continued to expand beyond mobile calls and data into home broadband, data centres and financial services.

The company posted a consolidated net profit of ₹8,887.5 crore for the July-September quarter, the second quarter of the 2026-27 financial year, up 30.86% from ₹6,791.7 crore a year earlier, according to results announced on Thursday, November 5, and reported by Business Today. Profit rose 8.8% from ₹8,167.4 crore in the previous quarter, according to Upstox.

Revenue from operations rose 16.7% to ₹60,878 crore, while revenue from the India business grew 9.4% to ₹42,308 crore. The company's African operations also contributed to growth.

The profit figure fell short of some analysts' estimates, according to Forbes India, which reported that the results missed expectations.

ARPU keeps rising

Average revenue per user (ARPU), the telecom industry's key measure of profitability, rose to ₹271 from ₹256 a year earlier, according to Business Today. Airtel has long had the highest ARPU among Indian operators, reflecting its focus on higher-value customers, including postpaid subscribers and smartphone users.

Rising ARPU has been driven by tariff increases, the migration of customers from basic phones to smartphones, and growth in postpaid connections. Indian operators raised mobile tariffs significantly in 2024, and the industry has signalled that further increases may be needed to fund investments in 5G networks.

Customers upgrade

Airtel continued to add higher-value customers. Smartphone data customers increased by 18.8 million from a year earlier and by 2.9 million from the previous quarter, and now account for 81% of its total mobile customer base, according to Business Today.

The company added 1.2 million postpaid customers in the quarter, which it described as its strongest single-quarter performance. Postpaid customers typically spend more and are less likely to switch operators.

Mobile data usage rose 36.5% from a year earlier to 36.5 GB per customer per month, reflecting the growing consumption of video and other data-heavy services, particularly with the spread of 5G.

In its homes business, which includes fibre broadband, Airtel added 3.4 million customers over the year.

Data centre ambitions

Airtel highlighted its push into data centres, one of the fastest-growing segments of India's digital infrastructure. The company said it had purchased land that "marks another important step towards realising our ambition of building 1 GW of data centre capacity," said Gopal Vittal, executive vice chairman, according to Business Today.

Airtel's data centre business, Nxtra, operates facilities across India and has been expanding to meet demand from cloud providers, enterprises and AI companies. India's data centre market is growing rapidly, driven by data localisation requirements, the expansion of cloud computing and the rise of AI.

The push comes as the global AI infrastructure market faces turbulence. On the same day Airtel reported its results, US stocks tied to data centres fell sharply on fears that political changes in the United States could slow construction there. India's data centre industry, by contrast, is benefiting from strong domestic demand and government support.

Financial services

Vittal also highlighted Airtel's financial services business, saying "early traction following the commercial launch has been very encouraging," according to Business Today. Airtel has built a presence in payments through Airtel Payments Bank and has been expanding into lending, insurance and other financial products, using its large customer base and distribution network.

A strong balance sheet

Vittal described the company's "strong and resilient balance sheet, anchored by robust cash generation and disciplined capital allocation." Airtel has been reducing debt, including by prepaying some of its liabilities for spectrum purchased in government auctions, as cash flows have grown with rising ARPU.

The stock closed at ₹2,062.05 on the BSE on the day of the results, down 0.19%, according to Business Today. On Friday, November 6, Airtel shares rose between 1.5% and 1.85%, alongside IT stocks, as Indian markets shrugged off a global sell-off, according to Business Today.

The competitive landscape

India's telecom market has consolidated into three private players: Reliance Jio, the market leader by subscribers, Bharti Airtel and the financially strained Vodafone Idea, along with state-owned BSNL. Jio and Airtel have both rolled out 5G networks across the country, while Vodafone Idea has lagged in 5G investment.

Airtel has gained market share in recent years, particularly among high-value customers, as Vodafone Idea has struggled with debt and a lack of investment. Reliance Jio is preparing for a public listing, which could intensify competition and provide a new benchmark for valuing Indian telecom companies.

Africa

Airtel Africa, which operates in 14 African countries, has been a significant contributor to the group's growth. Africa offers strong growth in mobile subscribers, data usage and mobile money services, although currency volatility in some markets has affected reported results in the past.

The 5G monetisation challenge

Indian operators have invested heavily in 5G networks, but they have struggled to earn significantly more revenue from 5G users, as they initially offered 5G data at no extra cost. The industry is looking for ways to monetise 5G, including through fixed wireless access for home broadband, enterprise services and premium plans. Airtel's growing home broadband customer base, partly driven by 5G-based fixed wireless access, is one example.

Why it matters

Airtel's results illustrate the transformation of India's telecom industry from a price war that drove operators into heavy losses to a more stable, profitable market. Higher ARPU and growing data usage have improved the industry's financial health, enabling continued investment in networks.

For investors, Airtel offers exposure to India's digital economy, including mobile, broadband, data centres and financial services. Its diversification into data centres and digital services could provide new avenues for growth as the core mobile business matures.

Data usage and the 5G dividend

Rising data consumption underpins Airtel's growth. With average usage of 36.5 GB per customer per month, Indian mobile users are among the heaviest data consumers in the world, driven by video streaming, social media and online gaming. As 5G adoption spreads and more users upgrade to smartphones, operators expect data consumption, and the revenue it generates, to continue rising.

What comes next

Investors will watch for further tariff increases, the progress of Airtel's data centre expansion and the growth of its financial services business. The listing of Reliance Jio and the fate of Vodafone Idea will also shape the competitive environment. With ARPU still rising and new businesses gaining traction, Airtel is positioning itself as a broad digital infrastructure company rather than just a mobile operator.