Bharti Airtel profit fell 25.88% despite 15.68% revenue growth
A 38.11-percentage-point tax-rate swing and negative other income offset the YoY margin gain.
Filed 13 May 2026, 16:44 IST · after market close · Bharti Airtel Ltd (BHARTIARTL)
Key takeaways
- Consolidated net profit fell 25.88% YoY even as revenue rose 15.68%, with the tax rate moving up 38.11 percentage points.
- Operating margin widened 0.45 percentage points YoY, but slipped 0.16 percentage points QoQ as expenses grew 2.99% against 2.60% revenue growth.
- The stock rose 5.27% after the results, well above its 1.89% median absolute move across the last eight result announcements.
Price around the results
Revenue growth outpaced costs over the year
Bharti Airtel's consolidated revenue grew 15.68% YoY, while expenses rose 14.49%, allowing operating profit to increase 16.60%. That lifted operating margin by 0.45 percentage points to 56.86%. Sequentially, however, expenses grew faster than revenue, so margin narrowed 0.16 percentage points.
Tax and other income weakened profit quality
Pre-tax profit increased only 4.81% YoY, well below operating-profit growth, as depreciation rose 10.69% and interest rose 1.88%. Other income turned negative and represented -21.88% of pre-tax profit, adding to the pressure below operating profit. The tax rate rose from -30.17% to 7.94%, contributing to the 25.88% YoY decline in net profit; QoQ, the 22.94-percentage-point tax-rate reduction helped net profit rise 8.76% despite an 18.34% fall in pre-tax profit.
Margin remains above peers after a Q3 peak
Operating margin improved from 56.41% in Q4FY25 to 56.86% in Q4FY26, but eased from 57.02% in Q3FY26. The latest quarter therefore broke the recent upward sequence from Q1FY26 through Q3FY26. Among seven reported telecommunication peers, Bharti Airtel's margin was 37.27 percentage points above the 19.59% median.
Market reaction was unusually positive for the stock
The stock rose 5.27% in the first session after the results and was up 6.49% on the following session. The first-session move was above the 1.89% median absolute move across the last eight result announcements, with trading volume at 2.28 times its reference level. It also outperformed the benchmark by 4.09% on the first session.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹55,383 cr | ₹53,982 cr | +2.60% | +15.68% |
| Other income | ₹-2,198 cr | ₹562 cr | — | — |
| Expenses | ₹23,892 cr | ₹23,199 cr | +2.99% | +14.49% |
| Operating profit | ₹31,492 cr | ₹30,783 cr | +2.30% | +16.60% |
| Operating margin (%) | 56.86% | 57.02% | — | — |
| Interest | ₹5,606 cr | ₹5,623 cr | -0.31% | +1.88% |
| Depreciation | ₹13,644 cr | ₹13,420 cr | +1.66% | +10.69% |
| Profit before tax | ₹10,045 cr | ₹12,301 cr | -18.34% | +4.81% |
| Tax | ₹797 cr | ₹3,799 cr | -79.01% | — |
| Net profit | ₹9,247 cr | ₹8,503 cr | +8.76% | -25.88% |
| EPS (₹) | ₹12.53 | ₹11.44 | +9.53% | -34.12% |
Operating margin of 56.86% compares with a Telecommunication sector median of 19.59% across 7 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.27% | +4.09% |
| Next session | +6.49% | — |
| 5 sessions | +5.37% | +4.34% |
| 15 sessions | +0.50% | — |
| 30 sessions | +2.90% | — |
Volume on the results session was 2.28× its 20-day average.
What to watch
- Whether operating margin recovers from 56.86% after the 0.16-percentage-point QoQ decline.
- Whether expense growth remains below revenue growth, as it did YoY at 14.49% versus 15.68%.
- Whether the tax rate stays near 7.94% and other income avoids another -21.88% contribution to pre-tax profit.