Bharti Airtel Growth Drivers Remain Intact: HSBC Global Research

Indian digital service provider Bharti Airtel‘s structural growth drivers remain intact, supported by rising mobile ARPU, expanding home broadband subscribers, and increasing free cash flow with lower capex intensity, according to HSBC Global Research. The global research firm has picked five stocks for 2025 among Asian telcos, with Bharti Airtel being one of them. “India telcos are preferred due to better ARPU growth outlook, while Thailand telcos are attractive on rising FCF and dividends,” HSBC said in its report dated February 4, 2025.

• Make Telecom Talk My Trusted Source
• 
• 

Also Read: Airtel CEO Says ARPU Drivers Remain Intact Post Tariff Revision

Airtel Among HSBC’s Top 5 Asian Telco Picks

HSBC Research’s five preferred picks for 2025 (all rated as “Buys”) include Bharti Airtel (India), True Corp (Thailand), Singtel (Singapore), Indosat Ooredoo Hutchison (Indonesia), and Globe Telecom (Philippines). “In large-caps, we like Bharti Airtel, True Corp and Singtel. In mid-caps, we prefer Indosat Ooredoo Hutchison (IOH) and Globe Telecom,” the report noted.

Bharti Airtel’s Growth Drivers Remain Strong

According to the report, Bharti Airtel‘s consolidated EBITDA is expected to grow at a CAGR of approximately 15 percent, with its EPS rising by around 75 percent over FY24-27E. “Structural growth drivers remain intact for the company: rising mobile ARPU, expanding home broadband subscribers with 5G FWA adoption, and rising FCF (free cash flow) with lower capex intensity,” the report said.

The report anticipates a 114 percent year-over-year increase in dividends to Rs 17 per share in FY25E, driven by an improved free cash flow outlook and rising cash flow requirements at the promoter entity.