Bharti Airtel gains as Citi raises target price by 16%, hikes FY26 ARPU estimates by 3%

Bharti Airtel share price: Foreign brokerage Citi has maintained a "buy" rating for Bharti Airtel but has raised the target price to Rs 1,520 from Rs 1,305 earlier. The brokerage has hiked the FY26 average revenue per user (ARPU) for the telecom company by 3 per cent and EBITDA (earnings before interest, taxes, depreciation, and amortisation) by 1-2 per cent for FY25/26, given the improved visibility of tariff hikes. 

The stock of the company traded in the green in opening deals. It hit a high of Rs 1,364.05 on the BSE, which was also its record-high level. 

Last week, the telecom major said that it would merge its Sri Lanka operations with Dialog Axiata in an equity swap deal. Airtel Lanka's turnover in the financial year 2023 was Rs 294 crore, and it contributed 0.21 per cent to Bharti Airtel's overall business.

"Dialog Axiata PLC, Axiata Group Berhad (Axiata), and Bharti Airtel Limited signed a definitive agreement to combine their operations in Sri Lanka," the statement said.

Under the agreement, Sri Lanka-based telecom operator Dialog will acquire 100 per cent of the issued shares in Airtel Lanka, in consideration of which Dialog will issue to Bharti Airtel, ordinary voting shares, which will amount to 10.355 per cent of the total issued shares of Dialog by way of a share swap, it said.

Airtel Sri Lanka commenced commercial operations in Sri Lanka in 2009.

Earlier this month, Antique Stock Broking initiated coverage on the stock with a "buy" rating. The brokerage noted that the telecom major is set to ride its best financial performance phase in over a decade, given multiple favourable factors such as tariff hikes, 2G upgrades, strong growth in enterprise and FTTH (Fibre to the Home), and a fall in capex post the 5G rollout over the next three years.

It set the target price at Rs 1,505. READ MORE

Shares of the company have jumped 77 per cent in the past 12 months.