India’s Telecom Giant Surprises Street: Profit Dips But Airtel Outperforms Expectations
When India’s second-largest telecom operator, Bharti Airtel, revealed its Q4FY25 earnings, the Street braced for impact. What followed, however, was a mixed bag of numbers that left analysts scratching their heads — and investors wondering whether the dip in profit was really a warning sign or a well-disguised signal of deeper strength.
Let’s break it down, piece by piece.
The Headline Numbers: What Stood Out in Q4FY25
Despite a 25% quarter-on-quarter drop in net profit, Airtel still beat analyst expectations — not a small feat in today’s volatile market.
Here’s a snapshot of the key figures:
| Metric | Q4FY25 | Q3FY25 | % Change QoQ |
| Net Profit | ₹11,022 Cr | ₹14,781.2 Cr | 🔻 25.4% |
| Revenue | ₹47,876 Cr | ₹46,888 Cr | 🔺 2.1% |
| EBITDA | ₹27,404 Cr | ₹29,057 Cr | 🔻 5.7% |
| EBITDA Margin | 57.2% | 62% | 🔻 |
| ARPU | ₹245 | ₹245 | ➖ (Flat) |
The High Base Trap
The profit fall isn’t entirely unexpected. In Q3FY25, Airtel booked a one-time gain of ₹7,545.6 Cr, inflating its net. Remove that, and the underlying performance this quarter looks far healthier than it appears on the surface.
Revenue Climb Shows Operational Muscle
While profit drew attention, the real story lies in revenue and ARPU. Airtel’s revenue rose 2.1% sequentially — impressive in a slow-growth sector — and ARPU (Average Revenue Per User) held firm at ₹245.
Even more interestingly:
- Data consumption per user grew over 21% YoY, now hitting 25.1 GB/month
- This shows not just retention but deepening engagement
In plain terms: more Indians are not just staying with Airtel — they’re using it more.
Dividend Delight: ₹16 Payout for FY25
Despite margin pressures, Airtel’s board announced a final dividend of ₹16 per share — a strong signal of confidence and continued shareholder value.
For long-term investors, this is good news: even in tough quarters, the company is delivering tangible returns.
Market Reaction: Short-Term Jitters?
Ahead of the results, Airtel’s stock closed 2.74% lower at ₹1,820.95 on the BSE. A knee-jerk reaction? Perhaps.
But let’s consider:
- The stock had already run up in anticipation of strong results
- Profit drop, despite being explainable, triggered mild concern
Smart money may view this dip as a buying opportunity, given the underlying strength in operations.
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