Financial services firm CLSA has reiterated its 'Buy' rating on Bharti Airtel Ltd., projecting a target price of Rs 2,310 per share. This forecast suggests a potential upside of 27% for the telecom giant's stock, driven by the anticipated initial public offering (IPO) of Airtel Money, its mobile money business in Africa.
Airtel Money IPO Expected in H2 2026
The IPO for Airtel Money, a significant component of Bharti Airtel's Africa operations, is scheduled for the latter half of 2026. CLSA analysts estimate that the offering could raise between $1.5 billion and $2 billion, potentially valuing the mobile money arm at $10 billion. This valuation would mark a four-fold increase from 2021 and represent approximately 60% of Airtel Africa’s current market capitalization.
Airtel Money currently contributes about 20% to the Africa region's revenue, with Africa itself accounting for 25% of Bharti Airtel’s consolidated operations. While CLSA did not assign a separate valuation for Airtel Money in its overall assessment of Bharti Airtel, it factored in Bharti's 62% stake in Africa at market cap, which constitutes 6% of the Rs 2,310 target price. Bharti Airtel is also in the process of increasing its shareholding in Airtel Africa to 78%.
Strong Growth and Future Potential
The mobile money business has demonstrated robust financial performance. In fiscal year 2026 (FY26), Airtel Money's revenue surged by 36% year-over-year to $1.4 billion, while its EBITDA grew by 31% to $689 million. The business also boasts a healthy profit margin of 50.8% for FY26, outperforming the overall Africa operations margin of 49.3%.
CLSA highlights that Airtel Money's penetration remains relatively low, covering only 29% of Airtel Africa’s 184 million mobile subscribers. A key factor in this is the slow ramp-up in Nigeria, Airtel’s largest market, which currently has only 2.7 million mobile money subscribers. This low penetration, coupled with strong historical growth, suggests significant future expansion potential.
Subscriber and Transaction Value Growth
- Mobile Money Subscribers: Increased by 21% year-over-year to 54 million in FY26.
- Transaction Value: Grew by 44% year-over-year (in reported currency), reaching an annualized transaction value of $215 billion.
Management's strategic focus for Airtel Money is on expanding its subscriber base and increasing gross transaction values (GTV). Analysts expect the strong growth momentum observed in FY26 to continue, driven by efforts to deepen market penetration, especially in under-tapped regions like Nigeria.