Bharti Airtel, India's second-largest telecommunications operator, has reported a substantial 55 percent year-on-year decline in its consolidated net profit for the December 2025 quarter. The company's earnings fell to Rs 6,630.5 crore, a sharp drop from the Rs 14,781.2 crore profit recorded in the same period last year, according to regulatory filings.
Revenue Growth Amid Profitability Pressures
Despite the significant profit contraction, Bharti Airtel maintained strong revenue momentum during the quarter. The telecom giant reported quarterly revenue from operations of Rs 53,982 crore, representing an impressive 19.6 percent increase from Rs 45,129.3 crore in the year-ago period. This growth was driven by multiple factors including improved realizations and expanding customer base.
Cost Factors Impacting Bottom Line
The profit decline was primarily attributed to rising operational expenses across several key areas. Network operating costs, statutory fees, and employee expenses all contributed to the increased expenditure burden. Specifically, employee expenses climbed 21 percent to Rs 1,958 crore from Rs 1,608 crore in the previous year, while license fees and spectrum charges rose approximately 7 percent to Rs 3,846 crore.
Capital Expenditure and Market Expansion
Bharti Airtel's capital expenditure during the quarter surged about 28 percent to Rs 11,787 crore, compared with around Rs 9,161 crore in the December 2024 quarter. In the Indian market specifically, capital expenditure increased 16 percent to Rs 9,249.5 crore from Rs 7,979.5 crore, reflecting continued investment in network infrastructure and expansion.
India Operations Performance
The company's India operations demonstrated robust growth with revenue rising to Rs 39,226 crore, registering a 13.2 percent year-on-year increase. India mobile revenue specifically grew 9.1 percent, supported by improved average revenue per user (ARPU) metrics and a growing subscriber base. The India customer base expanded 12.6 percent to reach 41.38 crore users during the quarter.
Africa Business Momentum
Bharti Airtel's Africa business continued its strong performance with the customer base growing 10 percent to 17.93 crore users. The company reported exceptional performance in the African market, with constant currency revenue growth of 5.8 percent during the quarter.
Key Performance Metrics
The company reported significant improvement in several key operational metrics. The overall customer base expanded 11.8 percent to reach 57.6 crore during the quarter. Perhaps most notably, ARPU (Average Revenue Per User) increased 5.7 percent to Rs 259, compared with Rs 245 in the year-ago period, indicating improved monetization of the subscriber base.
Management Commentary
Bharti Airtel Executive Vice Chairman Gopal Vittal commented on the quarterly performance, stating that the results reflected continued strength in the company's operating strategy. "The third quarter marked another strong quarter, with consolidated revenue of Rs 53,982 crore, a growth of 3.5 percent sequentially, underpinning the company's strategy of a diversified and resilient portfolio," Vittal said.
He further elaborated on the regional performance, noting that "India revenue, including passive infrastructure services, increased by 1.4 percent sequentially. Africa delivered yet another quarter of exceptional performance with constant currency revenue growth of 5.8 percent. One of the reasons for our stepped-up performance in Africa is the deployment of our homegrown digital stack that has sharpened our go-to-market excellence."
The quarterly results highlight the contrasting dynamics in Bharti Airtel's business - strong top-line growth and customer expansion on one hand, and significant cost pressures impacting profitability on the other. The company continues to invest heavily in both Indian and African markets while navigating the challenges of rising operational expenses in a competitive telecommunications landscape.
