Shares of Bharti Airtel experienced a notable downturn on Tuesday following the announcement of its earnings for the second quarter of the financial year 2024-25 (FY25). In early trading, the stock dropped by up to 2.7%, reaching ₹1,617 apiece on the National Stock Exchange (NSE). By 9:33 AM, the scrip had slightly recovered but remained down 2.6%, priced at ₹1,620. The company’s market capitalization currently stands at ₹9,23,060.6 crore.
Despite the decline in share price, Bharti Airtel reported a significant year-on-year increase in consolidated net profit for the quarter. The net profit surged 168% to ₹3,593.2 crore compared to ₹1,340.7 crore during the same period last year. However, on a sequential basis, the post-tax profit saw a decline of 13.6%, falling short of market expectations.
Bharti Airtel’s revenue from operations also showed positive momentum, rising 12% year-on-year to ₹41,473 crore. This growth was driven by strong performance in its Indian market and continued expansion in Africa. Additionally, the average revenue per user (ARPU) for mobile services climbed to ₹233 in the second quarter, up from ₹203 in the same period last fiscal year.
In a noteworthy management update, the company announced that Gopal Vittal, who has served as Managing Director and CEO for over a decade, will transition to the role of Executive Vice Chairman on January 1, 2026. Shashwat Sharma, currently the Chief Operating Officer (COO), has been appointed as the new MD and CEO, effective the same date.
Bharti Airtel Chairman Sunil Mittal expressed confidence in the succession plan, stating, “I am extremely pleased with the succession and transition plan of leadership at Airtel, and there could not have been a better time for Airtel to unveil the new arrangement where change and continuity will go hand in hand.”
Furthermore, the company reported a consolidated net income of ₹3,911 crore before exceptional items, reflecting a robust increase of 32.2% year-on-year. While the impressive yearly growth indicates the company’s strong operational performance, the quarterly decline in profit raised concerns among investors, contributing to the downward pressure on its share price.
As Bharti Airtel continues to navigate the competitive telecom landscape, market participants will be keenly observing its upcoming strategies and performance metrics in the coming quarters.
