Bharti Airtel reported a second-quarter consolidated net profit of 88.88 billion rupees, equivalent to 940.45 million dollars, missing market expectations as network operating expenses rose.

Consensus estimates compiled by LSEG projected net profit at 96.73 billion rupees for the three months ended September 30, even as total revenue increased 16.7 per cent to 608.78 billion rupees.

Network costs jumped 11 per cent during the period, driven by the maintenance and operation of telecom infrastructure across the country. Licence fees climbed 13 per cent, pushing total quarterly expenses up approximately 15 per cent to 259.32 billion rupees. Consolidated profit nevertheless gained from the 67.92 billion rupees recorded in the corresponding quarter a year prior, though top-line growth could not fully cushion operational inflation.

Average revenue per user increased 6 per cent year-on-year to 271 rupees, keeping Airtel ahead of domestic peers on unit realisations. The metric gained traction as the carrier added 18.8 million customers to its combined 4G and 5G footprint. Without broad-based tariff increases across the Indian market since July 2024, the business leaned on product pruning to lift receipts. Airtel removed several lower-tier prepaid denominations during the quarter, steering entry-level customers toward costlier recharge tiers.

That migration strategy reflects the ceiling facing Indian operators until the next coordinated price adjustment takes place. Relying entirely on organic plan migrations carries friction, particularly as inflation pressures lower-income prepaid consumers. Brokerage Centrum projects an industry-wide tariff increase of 12 to 15 per cent across the next four to five months, an intervention that would directly feed operating margins.

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