Bharti Airtel, India's second-largest telecom provider, reported a significant surge in profits on Monday, more than doubling its net profit for the second quarter. The company attributed this growth to its first tariff hike in over two years, which drove up its revenue per user.
Airtel's consolidated net profit jumped 168 per cent to Rs 3,593 crore ($427.49 million) for the July-September quarter. However, the telecom giant also recorded a one-time loss of Rs 854 crore, stemming from a unit’s foreign exchange loss due to currency devaluation.
The company reported a 10 per cent sequential rise in its average revenue per user (ARPU), reaching Rs 233 — well ahead of rival Reliance Jio's ARPU of Rs 195.1 for the same period. ARPU is a crucial performance metric in the telecom industry, and Airtel's consistent lead underscores its pricing power and market position.
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In June, all three major Indian telecom players — Jio, Bharti Airtel, and Vodafone Idea — introduced their first tariff hikes since 2021. These rate adjustments aim to offset significant 5G-related investments and mark a shift from aggressive market-share competition to a renewed focus on profitability. Earlier in October, Jio reported a 23 per cent profit increase attributed to the rate hikes, while Vodafone Idea has yet to release its results.
Despite the tariff boost, Airtel’s user base declined slightly by 0.7 per cent to 407 million as of September 30, likely as some users migrated to more affordable alternatives. The company's revenue for the quarter rose by approximately 12 per cent to Rs 41,473 crore, with total expenses mirroring the revenue increase.
In other updates, Airtel announced the appointment of its current Chief Operating Officer, Shashwat Sharma, as its CEO, effective January 1, 2026.
Shares of Bharti Airtel closed flat ahead of the earnings announcement.