CLSA has an “outperform” rating with a price target of ₹2,310 per share on Bharti Airtel, an upside of nearly 27% from its previous close.
It noted that the IPO for the company’s Africa mobile money business — Airtel Money — is scheduled for the second half of 2026.
It said, as per unconfirmed reports, Airtel Money could raise $1.5 to $2 billion at a potential valuation of $10 billion, up four-fold from 2021, implying around 60% of Airtel Africa’s market cap.
Airtel Money’s revenue in the financial year 2026 increased 36% to $1.4 billion, while its earnings before interest, taxes, depreciation and amortization (EBITDA) was up 31% at $689 million from last year.
CLSA said Airtel Money penetration is low at 29% of Airtel Africa’s own mobile subscribers of 184 million as Nigeria has yet to ramp up. Hence, the strong growth is likely to continue.
The Airtel Money business contributes around 20% of the region and Africa accounts for 25% of Bharti Airtel’s consolidated operations, the brokerage added.
It said it values Bharti Airtel’s 62% stake in Africa at a market cap of 6% of 2,310 target price. It does not separately value Airtel Money.
Bharti Airtel reported its fourth quarter earnings last month. Its consolidated net profit increased 10.5% to ₹7,325 crore from ₹6,630 crore in the previous quarter. A CNBC-TV18 poll had forecast net profit of ₹7,404 crore.
Its revenue of ₹55,383 crore was up 2.6% from the prior quarter’s ₹53,981 crore and was in-line with Street estimates of ₹55,380 crore.
The company’s EBITDA increased 2.3% sequentially to ₹31,492 crore from ₹30,782 crore. It was also close to estimates of ₹31,576 crore.
Its margins were flat sequentially at 57% and in-line with Street estimates.
The company’s board also recommended a final dividend of ₹24 per share for the financial year 2026.
Of the 30 analysts who have coverage on the stock, 27 have a “buy” rating and three have a “sell” rating.
Shares of Bharti Airtel Ltd. were trading 0.9% lower at ₹1,802.1 apiece at 11.30 am on Friday. The stock has declined 14.6% this year, so far.
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