Bharti Airtel Earnings to Rise Over 24 Months Post Tariff Hike: S&P Global Ratings

Bharti Airtel Earnings to Rise Over 24 Months Post Tariff Hike: S&P Global Ratings
Bharti Airtel’s earnings and cash flows are expected to rise over the next 24 months, benefitting from the industry-wide raise in mobile tariffs, said S&P Global Ratings. On November 22, 2024, the global rating agency revised its rating outlook on Bharti Airtel to positive from stable. S&P Global Ratings has affirmed ‘BBB-‘ long-term issuer credit rating on Bharti Airtel.

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Upgrades Bharti Airtel’s Outlook to Positive

According to the rating agency, the positive outlook reflects the likelihood of an improvement in Bharti Airtel’s stand-alone credit profile (SACP) owing to its healthy earnings and easing leverage. “However, an upgrade of the company could remain contingent on a similar action on the sovereign rating on India,” the rating agency said in a statement on Friday.

Impact of Mobile Tariff Hikes

The rating agency said the strong growth in India earnings will be largely driven by a hike in mobile tariffs in the country earlier this year. Prices of Airtel’s mobile plans were up 10 to 21 percent, effective July 4, 2024, as reported by TelecomTalk.

Read More – Bharti Airtel Announces Revised Mobile Tariffs: Check Complete Details

Projections for Fiscal 2025 and 2026

The rating agency projected EBITDA from Bharti Airtel’s Indian operations will rise 18 percent-20 percent in fiscal 2025 (year ending March 31, 2025), and by a further 12 percent-15 percent in fiscal 2026 with most of the growth coming from the mobile segment. S&P Global Ratings also anticipates higher earnings from Bharti Airtel’s home and enterprise segments due to increased uptake of home broadband and enterprise digitalisation.