Telecom Stock to Buy Now for an Upside of 14%; Recommended by Trade Brains Portal
Trade Brains Portal has recommended a “Buy” call on a telecommunications stock with an upside potential of 13.71%. India’s telecommunications and digital infrastructure sector serves as a vital pillar of national economic growth, driven by rapid 5G adoption, cloud computing, AI deployment, digital financial services, and expanding fibre networks.
The recommended company, Bharti Airtel Limited, is a premier global communications provider serving over 650 million customers across 15 countries in Asia and Africa, with associate operations in Bangladesh and Sri Lanka. Through its retail and enterprise channels, the company leverages extensive digital infrastructure, data centres (Nxtra), and in-house digital platforms (Xtelify) to deliver mobile, broadband, enterprise, sovereign cloud, and passive infrastructure services via Indus Towers Ltd. Bharti Airtel is scheduled to approve its Q2 FY2027 unaudited financial results for the quarter ended September 30, 2026.
Why it’s recommended:
Strong Consolidated Revenue and Cash Generation
Bharti Airtel achieved a robust financial performance as consolidated revenue reached Rs 58,500 crore, reflecting a sequential growth of 5.7%. Operational strength remained exceptional, with consolidated EBITDAaL reaching Rs 29,800 crore, delivering an industry-leading margin of 51%. The business generated an impressive operating free cash flow exceeding Rs 16,450 crore during the quarter, while continuing its aggressive growth momentum through a quarterly capital expenditure deployment of Rs 13,390 crore.
Steady Reduction in Company Debt
The company's disciplined capital allocation and cash flow generation further strengthened its financial health. Consolidated net debt to EBITDAaL improved to 0.7 times, demonstrating a lean leverage profile. Notably, the India operations (excluding passive infrastructure) achieved a landmark threshold, dropping below 1.0 times net debt to EBITDAaL.
More targets from Trade Brains Portal: Auto Stock to Buy Now for an Upside of 20%
Strategic Global Expansion and Africa Business Strength
Reinforcing its long-term strategy and global operational presence, Bharti Airtel increased its stake in its Africa business to over 79%. Airtel Africa continues to serve as an indispensable earnings driver, generating an annualised EBITDA exceeding Rs 35,000 crore. The digital financial ecosystem showed stellar performance through Airtel Money, already listed on the London Stock Exchange, which generated over $400 million in Q1 revenue, representing a steep 26% year-on-year growth in constant currency terms across its strong global footprint.
Accelerated Subscriber Addition and ARPU Growth
The core India mobile operations witnessed exceptional customer adoption, adding 3.3 million revenue-earning mobile customers alongside 5 million smartphone data users during the period. Premiumization trends remained evident as the company onboarded a record 1 million postpaid users. Consequently, mobile Average Revenue Per User (ARPU) expanded to Rs 264. Concurrently, the enterprise segment sustained steady expansion, with Airtel Business revenue growing 3.2% sequentially to reach Rs 5,670 crore.
Rapid Scaling of Financial Services, Cloud, and Data Infrastructure
Bharti Airtel accelerated its diversification into high-growth digital enterprise adjacencies. The company successfully launched NBFC lending services within just nine months of receiving regulatory licensing, with Airtel Finance monthly loan disbursements quickly crossing Rs 750 crore. On the digital infrastructure side, the Airtel Cloud customer base expanded to 33 major clients. Furthermore, the company's data centre arm, Nxtra, established an ambitious roadmap to scale its operational data centre capacity from 130 MW to 1 GW.
Pioneering AI Deployment and Operational Cost Optimisation
Technological innovation remained central to operational efficiency and customer trust. To optimise infrastructure overheads, the company deployed local small language models (SLMs) directly onto field engineers' handheld devices, completely eliminating cloud computing latency and expenses. Simultaneously, Bharti Airtel's proprietary AI solutions proactively protected consumers, identifying and blocking over 93 billion spam calls and 4 billion spam messages.
Solid Growth Trajectory at Bharti Hexacom
Bharti Hexacom delivered strong financial and operational momentum, posting revenues of Rs 2,510 crore, up 4% quarter-on-quarter, along with an EBITDAaL of Rs 1,210 crore. The entity closed the quarter serving a total base of 29 million mobile customers while realising a healthy ARPU of Rs 259.
About the Company
Headquartered in India, Airtel is a global communications solutions provider serving over 650 million customers across 15 countries in India and Africa, plus Sri Lanka and Bangladesh via associates. Ranked second globally among mobile operators, its networks cover over two billion people. It is India's largest integrated communications provider and Africa's second-largest mobile operator. Airtel’s retail offerings encompass 4G/5G mobile, Wi-Fi up to 1 Gbps, entertainment, and financial services. For enterprises, it delivers secure connectivity, cloud, data centres, cybersecurity, and IoT. Its digital arm, Xtelify, drives AI transformation, while subsidiary Indus Towers manages passive infrastructure.
What's recommended?
With a market capitalisation of Rs. 12,34,591 crore, Bharti Airtel Ltd is currently trading at Rs. 1,978.80 per share. Trade Brains Portal has recommended a "Buy" call on the stock with a target price of Rs. 2,250 per share, implying an upside potential of 13.71% from its current trading price.