Airtel Home Business to See Strong Momentum: BofA Securities

Bharti Airtel is anticipated to deliver strong results, with a 4 percent quarter-on-quarter (QoQ) revenue increase driven by a combination of rising Average Revenue Per User (ARPU) and subscriber additions. The company’s home business is likely to continue its strong momentum, projecting an 18 percent year-on-year (YoY) growth, according to a report from BofA Securities on January 9, 2025.

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Also Read: Bharti Airtel, Hexacom ARPU Expected to Rise 15-17 Percent: Axis Capital

Indian Telecom Sector

India’s telecom sector is expected to report steady performance in Q3 FY25, with Bharti Airtel and Reliance Industries (RIL) continuing to show growth, while Vodafone Idea (VIL) faces ongoing challenges. The report also highlights the positive impact of tariff hikes, operational leverage, and stable competition.

Bharti and Enterprise Segment

Bharti’s DTH and African operations are projected to remain stable. As a result, Bharti’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margins are expected to improve by 84 basis points QoQ, aided by operational leverage.

“We expect slower growth at enterprise business and estimate 9 percent YoY growth,” BofA Securities said in its report on 3Q Preview.

Also Read: Airtel Working on India’s First AI-Enabled Sovereign Cloud Solution

Indus Towers

Indus Towers, which provides infrastructure support (Telecom Towers) to telecom companies, is set for an improvement in performance as well. The company is expected to add 7.2K towers in Q3, significantly up from 3.7K in the previous quarter. This is expected to increase its tenancy ratio to 1.67x from 1.65x in Q2. As a result, Indus Towers is expected to see a 6.1 percent YoY revenue growth.