Airtel Q3 Results: ARPU Hits ₹259, 5G Customers Cross 181 Million

New Delhi, February 13, 2026:  Bharti Airtel Limited has delivered another quarter of strong operational and financial performance, with consolidated revenue touching ₹54,000 crore and EBITDA margin improving to 51.3% , according to the earnings call transcript filed with stock exchanges today.

The company's India mobile ARPU (Average Revenue Per User) stood at ₹259, driven by continued premiumization, while the total 5G customer base crossed 181 million. The management, led by Executive Vice Chairman Gopal Vittal and India CEO Shashwat Sharma, shared detailed insights on growth strategy, capital allocation, and key challenges.

Q3 FY2026 Performance Snapshot

Key Management Takeaways

1. ARPU Growth Strategy in Absence of Tariff Repair

Gopal Vittal addressed concerns on slowing wireless revenue growth, stating that market growth has moderated to about 6% annually. In the absence of industry-wide tariff hikes, Airtel will continue to drive ARPU through:

• Feature phone to smartphone upgrades

• Prepaid to postpaid conversions

• Data monetization

• International roaming (growing at 30% YoY)

• Continuous A/B testing and creative experiments across geographies

2. AGR Dues: Parity Sought with Government

On the ongoing AGR issue, Vittal confirmed that Airtel has written to the Department of Telecommunications (DoT) seeking parity in treatment of dues, following relief granted to a competitor. The company is awaiting response before deciding next steps. Key areas flagged include:

• Arithmetical errors in computation

• Errors of commission and omission

• Treatment based on Supreme Court verdict

3. Data Center Expansion: From 130 MW to 1 GW

Airtel plans to scale its Data Center capacity from the current 120-130 MW to 1 gigawatt over the next 3-4 years, targeting 25% market share (up from 12% currently). This will involve stepped-up investments, with a focus on:

• Green power availability

• Sovereign cloud certification from MeitY

• Geopolitical tailwinds for data localization

• Potential inorganic opportunities in a fragmented market

4. Capital Allocation: Strong Balance Sheet, Prudent Investments

With net debt-to-EBITDA at a historic low of 1.02x, Airtel has significant firepower. Vittal outlined priorities:

• Core business investments

• Adjacencies: Data Centers, Cloud, Financial Services

• Africa continues to be a valuable asset with constant currency growth

• Rights issue proceeds (from the 3-year old call) to be deployed for long-term value creation

5. AI and Digital Transformation

AI is now embedded across Airtel's operations with four core objectives:

• Accelerating revenue through precision targeting

• Building differentiated products (AI-powered Anti-Spam solution has blocked over 71 billion spam calls)

• Driving operational excellence (AI-optimized power management at cell sites)

• Elevating customer experience (70% of calls handled by self-serving voice bots)

6. FWA and Broadband Momentum

Airtel added 1.2 million broadband customers in the quarter, the highest ever. FWA base crossed 3 million, with fiber home passes expanding by 2 million in the quarter. The company's strategy remains fiber-first, with FWA augmenting supply where fiber is not yet available.

7. B2B Business: Double-Digit Growth Ahead

Gopal Vittal provided a detailed breakdown of the B2B portfolio:

• Core connectivity growing ahead of industry (5-6%)

• Digital portfolio (Cloud, Cybersecurity, IoT) growing at ~30%

• Commodity businesses (low-margin voice, messaging) flat or declining

• Underlying B2B growth at 10% after adjusting for low-margin exits

8. Bharti Hexacom Performance

Bharti Hexacom (circles: Rajasthan and Northeast) reported:

• Revenue: ₹2,360 crore (+1.8% sequentially)

• EBITDA margin: 47.6%

• ARPU: ₹253

• Homes business: 10% sequential revenue growth

• Net debt-to-EBITDA below 1x

CFO Soumen Ray acknowledged temporary challenges in one circle but reaffirmed alignment with the partner to resolve issues.

What Analysts Asked

Key questions from the analyst community covered:

• Sustainability of 5G pricing and network slicing capabilities

• FWA churn and migration to fiber

• Operating leverage from future tariff repairs

• Capital structure and return of capital to shareholders

• Cloud business traction and competition

Management responded with detailed insights, emphasizing that network slicing is a standard 5G feature and does not violate net neutrality principles.

Market Reaction

Airtel's strong operational metrics, coupled with a clean balance sheet and clear growth roadmap, have been well-received by analysts. The stock remains in focus as investors track the AGR outcome and Data Center scaling.

Conclusion: Airtel's Multi-Pronged Growth Engine

With a robust balance sheet, market-leading ARPU, and aggressive forays into Data Centers, Cloud, and AI, Bharti Airtel is positioning itself for the next phase of growth. The company's ability to sweat ARPU without tariff hikes, combined with disciplined capital allocation, makes it a formidable player in India's telecom and digital infrastructure story.

Disclaimer: This article is based on the publicly available earnings call transcript filed by Bharti Airtel Limited with BSE and NSE. Investors should consult their financial advisors before making investment decisions.