Bharti Airtel has just released its latest financial report for the third quarter of the financial year 2026 (Q3 FY26), and the numbers are a mixed bag for investors. While the company is earning more money from its customers than ever before, its final profit on paper has taken a dip.
If you are an investor or planning to buy Airtel shares, you might be confused by the headlines. Why is the profit down if the business is growing? Is the stock price at ₹2,000+ a good entry point?
This article breaks down exactly what happened, why the share price is reacting this way, and what experts predict for the coming months.
The Big Picture: What Happened in Q3 FY26?
On February 5, 2026, Bharti Airtel announced its results for the quarter ending December 2025. The company showed a very strong performance in its daily business operations, even though the final “net profit” number looks lower compared to last year.
Here are the key takeaways from the report:
- Total Revenue (Sales): The company earned ₹53,982 crore, which is a solid 19.6% increase compared to the same time last year. This means Airtel is successfully getting more money from its services.
- Net Profit: The net profit stood at ₹6,630 crore, which is a 55% drop compared to last year. (Don’t panic—we explain why below).
- ARPU (Average Revenue Per User): This is the most important number for a telecom company. Airtel’s ARPU jumped to ₹259 per month, up from ₹245 last year. This is the highest in the industry, beating reliance Jio.
Why Did Net Profit Drop 55%?
If revenue is up, why is profit down? The answer lies in “one-time” adjustments, not bad business.
- Comparison with a “Special” Year: Last year (Q3 FY25), Airtel’s profit looked unusually high because of a one-time gain of over ₹7,500 crore related to its stake in Indus Towers. That was a special event, not regular income. This year, there is no such extra boost, making the comparison look negative.
- New Costs: This quarter, Airtel had to set aside nearly ₹257 crore for employee costs due to a new labor code law.
The Expert View: If you remove these one-time special items, Airtel’s actual business profit is stable and growing. The core business is not losing money; it is actually becoming more profitable per customer.
India Business: The Real Growth Engine
Airtel’s main strength is its Indian operations. The company is aggressively adding high-value customers who pay for expensive data plans.
- More 4G/5G Users: Airtel added roughly 2.08 crore smartphone data customers in the last year. These users pay more than basic 2G voice users.
- Homes Business (Broadband): The WiFi and fiber internet business grew by 33%. Airtel added over 11 lakh new home internet connections in just three months—a record high.
- Postpaid Growth: The company added over 6 lakh new postpaid customers. Postpaid users are loyal and pay higher monthly bills.
Strategic Move: The AI Partnership with Google
In a major development for the future, Bharti Airtel has announced a strategic partnership with Google. They are setting up India’s first large-scale AI Hub in Visakhapatnam.
Why it matters: This isn’t just about phone calls anymore. This deal will help Airtel offer cloud and AI solutions to businesses, opening a new stream of income beyond just recharge plans.
Share Price Outlook: What Should Investors Do?
As of early February 2026, Bharti Airtel’s share price is hovering around the ₹1,990 – ₹2,025 range.
- Current Trend: The stock dipped slightly (about 1.5%) immediately after the results because some traders reacted to the “profit drop” headline.
- Analyst Ratings: Most major brokerage firms in India have kept a “BUY” rating.
- Target Price: Analysts are optimistic, with many setting target prices between ₹2,300 and ₹2,350 for the next 12 months.
The Bull Case: The company has the best customers (highest ARPU), rising revenue, and lower competition risks now that the telecom market is settled. The Bear Case: Investors should watch out for any delays in future tariff hikes (price increases) or expensive spending on new spectrum waves.
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Frequently Asked Questions (FAQs)
1. Is Airtel share a good buy for 2026?
Most experts believe Airtel is a strong long-term buy because it has the highest revenue per user in India and a growing broadband business. However, short-term ups and downs are normal.
2. What is Airtel’s ARPU and why is it important?
ARPU stands for Average Revenue Per User. Airtel earns ₹259 per customer per month. A higher ARPU means the company is making good money from each subscriber, which leads to better long-term profits.
3. Did Airtel lose money this quarter?
No, Airtel did not lose money. It made a profit of over ₹6,600 crore. The profit is just “lower” compared to a one-time record profit last year.
4. Will mobile recharge prices increase again?
Industry experts expect telecom companies, including Airtel, to raise prices (tariff hike) again in mid-to-late 2026 to improve their margins further.
5. How does the Google partnership help Airtel?
The partnership allows Airtel to sell advanced AI and Cloud services to businesses in India. This diversifies their income so they don’t rely only on mobile recharges.