New Delhi – Bharti Airtel has achieved a significant milestone, reclaiming its position as India's second-most valuable listed company by market capitalization. On November 6, the telecom giant's shares surged nearly 2.5% on the National Stock Exchange (NSE) to close at ₹2,107, propelling its market valuation to an impressive ₹13.15 lakh crore. This move places Airtel ahead of Jio Platforms, which now stands in third place with a valuation of ₹12.95 lakh crore, despite its recent stock market debut on October 28.
Reliance Industries, led by Mukesh Ambani, maintains its dominant lead as India's most valuable company, boasting a market capitalization of ₹17.86 lakh crore. Following Airtel and Jio, HDFC Bank ranks fourth with ₹12.16 lakh crore, and ICICI Bank secures the fifth spot at ₹11.28 lakh crore.
Strong Q2 Earnings Propel Airtel's Rise
Airtel's upward trajectory in market capitalization closely follows the announcement of its robust financial results for the September quarter of fiscal year 2027. The company reported a substantial 31% year-on-year increase in consolidated net profit, reaching ₹8,887.5 crore, up from ₹6,791.6 crore in the same period last year.
- Revenue Growth: India mobile revenue saw a 10.1% year-on-year increase, driven by improved customer realizations.
- ARPU Boost: Average Revenue Per User (ARPU), a critical metric for telecom profitability, climbed to ₹271 from ₹256 a year earlier.
- EBITDA Performance: Consolidated Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rose 17.8% to ₹35,240 crore from ₹29,919 crore in the year-ago quarter.
Bharti Airtel vs. Jio Platforms: A Comparative Look
While Bharti Airtel now holds a higher market valuation, a detailed comparison with Jio Platforms reveals distinct strengths for both telecom behemoths:
Financial Performance
- Revenue: Airtel reported higher revenue of ₹60,878 crore (up 16.7% year-on-year) compared to Jio Platforms' ₹40,475 crore (up 11.4%).
- Net Profit: Airtel's net profit stood at ₹8,888 crore, slightly above Jio's ₹8,389 crore.
- Profit After Tax (PAT) Margin: Jio recorded a higher PAT margin of 20.7%, surpassing Airtel's 14.8%.
- Operating Profitability: Airtel led in EBITDA at ₹35,240 crore with a margin of 57.9%, while Jio's EBITDA was ₹21,879 crore with a 54.1% margin.
- ARPU: Airtel maintained a significant lead in monthly ARPU at ₹271, compared to Jio's ₹218.8.
Customer Base and Debt
- Subscriber Numbers: Jio continues to lead in subscriber count with 54.2 crore customers against Airtel's 49.8 crore.
- Fixed Broadband: Jio also dominates fixed broadband with 3 crore customers, nearly double Airtel's 1.53 crore.
- Net Debt: Airtel's net debt remains substantially higher at ₹1.67 lakh crore, compared to Jio's ₹8,822 crore.
Analyst Outlook: Citi Remains Bullish
In its November 5 report, Citi Research reaffirmed its 'Buy' rating on Bharti Airtel, setting a target price of ₹2,230. The brokerage cited strong operational performance and improving customer monetization as key drivers. Citi noted that Airtel's India mobile revenue and EBITDA grew 3.4% and 3.8% quarter-on-quarter, exceeding their estimates.
However, Citi also highlighted a slowdown in subscriber additions due to increased customer churn following the withdrawal of Airtel's ₹299 entry-level prepaid smartphone plan. The firm anticipates future ARPU growth will be supported by tariff increases, greater 4G and 5G adoption, and a shift towards postpaid connections. Potential risks include competition, delayed tariff hikes, and higher capital expenditure.