Bharti Airtel has emerged as one of the top-performing telecom stocks in India during 2025. Its shares have delivered a return of around 17% so far this year, making it a strong contender in the sector. Now, two major global brokerages—Jefferies and Macquarie—have selected Airtel as their top pick in India’s telecom space.
Both firms are bullish on Airtel’s future growth, citing its strong subscriber additions, premium customer base, rising ARPU (Average Revenue Per User), and improved profit margins.
Jefferies gives strong ‘Buy’ rating with high target
Jefferies has rated Bharti Airtel a ‘Buy’ with a target price of Rs. 2,370. According to the brokerage, Airtel is the best option for investors seeking to capitalise on the revival in the Indian telecom sector.
Jefferies highlighted that after the recent tariff hikes, Airtel saw a sharp rise in its subscriber base. The company added 50 lakh new users in the last quarter of FY25, just behind Reliance Jio, which added 60 lakh. But what’s more important is the trend.
In the last three quarters, Airtel gained 70 lakh new users, while Jio lost 15 lakh users and Vodafone Idea lost nearly 1.2 crore users.
Airtel also has an edge because most of its users treat it as their primary SIM. This gives Airtel a stronger hold on its customer base, compared to Vodafone Idea and even Jio.
Airtel’s revenue and ARPU growth lead the sector
Jefferies pointed out that Bharti Airtel has shown the highest revenue growth since the latest tariff hike. Airtel’s revenue went up by 16%, while Jio posted 12% growth and Vodafone Idea recorded 13%.
Even more impressive, Airtel’s subsidiary Bharti Hexacom posted 23% revenue growth year-on-year in Q4.
In terms of ARPU, Airtel and Hexacom reported a combined growth of 16–18%. This is well above the 12–13% seen by Jio and Vodafone Idea.
Jefferies says this is due to Airtel’s premium subscriber base. These high-value users helped the company earn more revenue even after raising prices.
Airtel’s cost control boosts margins
Airtel has also managed to control its costs well. With lower network operating expenses and a drop in sales and admin spending, Airtel saw a notable rise in EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin.
These improvements suggest that Airtel is not only growing in size but also improving in efficiency.
Macquarie raises Airtel’s target, calls it a strong investment
Macquarie, another global brokerage firm, is also bullish on Bharti Airtel. It has increased Airtel’s one-year target price by 14% to Rs. 2,050 per share.
Macquarie added Airtel to its exclusive “India Super 6S” list, which includes only the strongest investment opportunities. The firm believes Airtel’s current financial strategies and sector conditions can support continued growth.
Macquarie expects Airtel’s ARPU to rise to Rs. 290 by FY27. That’s 11% higher than the current level, showing strong future income potential.
What makes Airtel stand out from its competitors
Bharti Airtel has created a solid position in the telecom industry due to a few key reasons:
- Strong customer additions even after tariff hikes
- Premium users who are willing to pay more
- Consistent revenue and ARPU growth
- Effective cost control and margin expansion
- Better performance than Jio and Vodafone Idea in several key areas
Both Jefferies and Macquarie believe that Airtel is in a good place to benefit from future growth in India’s telecom sector.
Disclaimer: Stock market investments carry risk. The views shared are from brokerage firms and not personal investment advice. Please consult a certified advisor before investing.
Source: Financial Express
