Bharti Airtel's profit jumps 34.89% as margin holds near record levels
Revenue growth outpaced costs year on year, while the sequential profit increase was moderated by a 19.37-point rise in the tax rate.
Filed 04 Aug 2026, 16:22 IST · after market close · Bharti Airtel Ltd (BHARTIARTL)
Key takeaways
- Consolidated revenue grew 18.35% year on year as expenses rose 16.71%, lifting operating profit 19.63%.
- Operating margin expanded 0.61 percentage points year on year to 56.89%, but was almost flat sequentially after slipping from 57.02% in Q3FY26.
- Net profit rose 34.89% year on year, helped by the tax rate falling 2.04 percentage points to 27.31%, while other income was only 4.8% of pre-tax profit.
Price around the results
Revenue growth continued to outpace costs
Consolidated revenue increased 18.35% year on year and 5.70% sequentially in Q1FY27. Expenses grew more slowly, at 16.71% year on year and 5.63% sequentially, allowing operating profit to rise 19.63% year on year and 5.75% sequentially.
Margin held, but the quarterly peak was in Q3FY26
The 0.61-percentage-point year-on-year margin expansion reflects revenue growing faster than expenses. Sequentially, the margin improved only 0.03 percentage points, leaving it below the 57.02% recorded in Q3FY26. The latest 56.89% margin was 37.47 percentage points above the 19.42% median for the eight telecommunications peers that had reported.
Tax movement shaped the profit comparison
Pre-tax profit rose 37.12% sequentially, but net profit increased only 8.26% because the tax rate rose 19.37 percentage points from Q4FY26's 7.94%. Year on year, the tax rate was 2.04 percentage points lower, which helped net profit grow 34.89%, ahead of the 31.11% increase in pre-tax profit. Other income contributed 4.8% of pre-tax profit, so it was not the main source of the earnings increase.
The stock reaction is still to come
The results were filed after market close, so there was no immediate market reaction in the reported session. After its last eight results, the stock rose five times and fell three times, with a median absolute move of 1.89%, making that the relevant historical benchmark for the next session.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹58,539 cr | ₹55,383 cr | +5.70% | +18.35% |
| Other income | ₹661 cr | ₹-2,198 cr | — | +11.80% |
| Expenses | ₹25,236 cr | ₹23,892 cr | +5.63% | +16.71% |
| Operating profit | ₹33,303 cr | ₹31,492 cr | +5.75% | +19.63% |
| Operating margin (%) | 56.89% | 56.86% | — | — |
| Interest | ₹5,956 cr | ₹5,606 cr | +6.26% | +9.08% |
| Depreciation | ₹14,235 cr | ₹13,644 cr | +4.34% | +14.20% |
| Profit before tax | ₹13,773 cr | ₹10,045 cr | +37.12% | +31.11% |
| Tax | ₹3,761 cr | ₹797 cr | +371.74% | +22.01% |
| Net profit | ₹10,012 cr | ₹9,247 cr | +8.26% | +34.89% |
| EPS (₹) | ₹13.38 | ₹12.53 | +6.78% | +30.41% |
Operating margin of 56.89% compares with a Telecommunication sector median of 19.42% across 8 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 56.89% after the 57.02% Q3FY26 peak.
- Whether revenue growth continues to exceed the 16.71% year-on-year expense growth recorded this quarter.
- Whether the tax rate moves back toward 27.31% or remains above Q4FY26's 7.94%.