09-Nov-2026 08:28:12
CITI on Bharti Airtel ; Buy, TP Rs 2390
In a notable reversal, Bharti has reinstated its Rs299 recharge plan 3 months after withdrawing it in Aug'26. While earlier plan offered 1.5 GB/day of data, relaunched version provides 1 GB/day. Move reflects Bharti's response to competitive pressures, as peers did not follow its earlier tariff action, as well as elevated churn during 2Q. Churn increased from 2.6% to 2.9% qoq, resulting in net subscriber additions slowing sharply qoq from +3.3m to +0.7m Decision underscores challenges of implementing unilateral tariff actions in prepaid smartphone segment, where competitive intensity remains highest It suggests that pricing discipline is difficult to sustain without broader industry participation. Note that based on certain assumptions around Bharti's subscriber mix, had estimated the Aug'26 move could potentially benefit ARPU by c.Rs4/mth (EPS benefit of c.2%). Bharti recently reported ARPU improvement from Rs264 to Rs271 in 2Q.
BHARTI AIRTEL LIMITED