Bharti Airtel expands margin as revenue growth stays ahead of costs
Consolidated revenue grew +3.99% sequentially while expenses rose +2.76%, but a higher tax rate limited net-profit growth to +6.98%.
Filed 05 Nov 2026, 16:20 IST · after market close · Bharti Airtel Ltd (BHARTIARTL)
Key takeaways
- Consolidated operating margin improved 0.71 percentage points year on year to 57.40% as revenue growth of +16.75% outpaced expense growth of +14.82%.
- Net profit rose +23.81% year on year to Rs 10,710.4 cr, despite interest costs increasing +17.30% and the tax rate rising 0.78 percentage points.
- Q2FY27 operating margin was 32.59 percentage points above the 24.81% median for 11 reporting telecom peers.
Price around the results
Revenue growth continued to outpace costs
Bharti Airtel's consolidated revenue grew +16.75% year on year and +3.99% sequentially, while expenses rose more slowly at +14.82% and +2.76%, respectively. That cost spread lifted operating profit growth to +18.21% year on year and +4.93% sequentially.
Margin improved, but tax absorbed more of the gain
Operating margin expanded 0.71 percentage points year on year and 0.51 percentage points sequentially because expenses grew more slowly than revenue. Interest costs rose +17.30% year on year but fell -4.18% sequentially, while the tax rate increased 3.27 percentage points sequentially to 30.58%, limiting net-profit growth to +6.98% sequentially despite pre-tax profit growth of +12.02%. Other income accounted for 5.23% of pre-tax profit, so it was not the main driver of earnings.
Margin trend remains above the sector
The operating margin rose from 56.28% in Q1FY26 to 57.40% in Q2FY27, with a dip to 56.86% in Q4FY26 followed by recovery in the next two quarters. Bharti Airtel's margin was 32.59 percentage points above the 24.81% median among 11 telecom peers that had reported the quarter.
Results were filed after the market close
The Q2FY27 results were filed after market close, so there is no current market reaction to assess. Across eight prior results, the stock rose after six and fell after two, with a median absolute move of 1.89%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹60,878 cr | ₹58,539 cr | +3.99% | +16.75% |
| Other income | ₹807 cr | ₹661 cr | +21.94% | -0.27% |
| Expenses | ₹25,932 cr | ₹25,236 cr | +2.76% | +14.82% |
| Operating profit | ₹34,946 cr | ₹33,303 cr | +4.93% | +18.21% |
| Operating margin (%) | 57.40% | 56.89% | — | — |
| Interest | ₹5,707 cr | ₹5,956 cr | -4.18% | +17.30% |
| Depreciation | ₹14,617 cr | ₹14,235 cr | +2.68% | +10.89% |
| Profit before tax | ₹15,428 cr | ₹13,773 cr | +12.02% | +25.20% |
| Tax | ₹4,718 cr | ₹3,761 cr | +25.43% | +28.49% |
| Net profit | ₹10,710 cr | ₹10,012 cr | +6.98% | +23.81% |
| EPS (₹) | ₹14.25 | ₹13.38 | +6.50% | +22.21% |
Operating margin of 57.40% compares with a Telecommunication sector median of 24.81% across 11 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.45% | +0.43% |
Volume on the results session was 3.30× its 20-day average.
What to watch
- Whether operating margin holds above 57.40%.
- Whether sequential expense growth stays below revenue growth of +3.99%.
- Whether the tax rate moderates from 30.58%.