Synopsis : CLSA has reiterated its ‘Outperform’ rating on Bharti Airtel, citing strong growth prospects from the upcoming Airtel Money IPO and expanding African operations. The brokerage sees a potential upside of 26.6% as Airtel Africa’s fintech business prepares for a major public listing in 2026.
CLSA Remains Bullish on Bharti Airtel
Global brokerage CLSA has maintained its ‘Outperform’ rating on Bharti Airtel with a 12-month target price of ₹2,310 per share, implying an upside potential of 26.6% from current levels.
The positive outlook comes as Airtel Africa moves closer to listing its fast-growing mobile money business, Airtel Money, during the second half of 2026. The IPO is expected to unlock significant value for shareholders and highlight the growing importance of Airtel’s African operations.
Airtel Money IPO Could Be a Major Value Unlocker
Airtel Money, the digital payments and mobile money arm of Airtel Africa, is expected to raise between $1.5 billion and $2 billion through its proposed IPO.
Market reports suggest the business could command a valuation of nearly $10 billion, representing a fourfold increase from its valuation in 2021. London is currently being considered as the most likely venue for the public offering.
The planned listing is expected to shine a spotlight on one of Africa’s fastest-growing fintech platforms and could act as a key catalyst for Bharti Airtel’s valuation.
Airtel Money Delivers Strong Financial Performance
The mobile money business has continued to deliver robust growth and profitability.
For FY26, Airtel Money reported a 36% year-on-year increase in revenue to $1.4 billion, while EBITDA grew 31% to $689 million.
The business maintained an EBITDA margin of 50.8%, outperforming Airtel Africa’s overall EBITDA margin of 49.3%, highlighting the strength and scalability of its digital financial services platform.
Low Penetration Leaves Massive Growth Opportunity
According to CLSA, Airtel Money still has a long growth runway ahead.
Mobile money penetration currently stands at just 29% of Airtel Africa’s 184 million mobile subscribers. While East Africa contributes nearly 74% of Airtel Money’s revenue, the company’s largest market, Nigeria, remains significantly underpenetrated with only 2.7 million mobile money subscribers.
This creates a substantial opportunity for future expansion as financial inclusion and digital payments adoption continue to rise across the continent.
Africa Business Becoming Increasingly Important
CLSA highlighted that Airtel Money contributes nearly 20% of Airtel Africa’s overall revenue, while Africa itself accounts for around 25% of Bharti Airtel’s consolidated operations before minority interests.
The brokerage also noted that Bharti Airtel’s move to increase its stake in Airtel Africa to 78% is currently underway, further strengthening its exposure to one of the group's fastest-growing businesses.
“Airtel Money contributes 20% of the region, and Africa accounts for 25% of Bharti Airtel’s consolidated operations pre-minorities. Meanwhile, Bharti’s increase in Africa’s shareholding to 78% is underway,” CLSA said.
Multiple Growth Drivers Beyond the IPO
Apart from the Airtel Money IPO, CLSA believes Bharti Airtel is well-positioned to benefit from several long-term growth drivers.
These include future tariff hikes in India, increasing mobile data consumption, wider smartphone adoption, and the continued rollout of 5G services across urban and rural markets.
The brokerage also expects 5G technology to strengthen Airtel’s enterprise business and fixed wireless access (FWA) offerings.
“Bharti remains focused on ramping up data from 70% penetration of its own 342 million India mobile subscribers and rolling out 5G services targeting all of urban India and key rural areas,” CLSA noted.
Potential Catalysts Investors Should Watch
According to CLSA, additional triggers for the stock include:
- Successful Airtel Money IPO in 2026
- Further tariff hikes in India
- Growth in 5G subscriber adoption
- Expansion of enterprise and FWA services
- Potential listing of Reliance Jio
- Any positive developments in the long-running AGR case
Bharti Airtel’s Recent Stock Performance
Bharti Airtel shares have witnessed moderate pressure in recent months.
The stock has declined more than 1% over the last five trading sessions, fallen 0.5% in the past month, and slipped nearly 15% over the last six months. Over a one-year period, the stock is down more than 4%.
Bharti Airtel Q4FY26 Highlights
For the fourth quarter of FY26, Bharti Airtel reported a consolidated net profit of ₹7,325 crore, down 34% year-on-year from ₹11,021 crore reported in the same quarter last year.
Despite the decline in profitability, the company delivered strong revenue growth. Consolidated revenue rose 16% year-on-year to ₹55,383 crore, compared to ₹47,876 crore in Q4FY25.
The company also announced a final dividend of ₹24 per fully paid-up equity share and ₹6 per partly paid-up equity share.
Conclusion
CLSA believes Bharti Airtel's African operations and the upcoming Airtel Money IPO could become significant value creators over the next few years. With strong fintech growth, expanding mobile money penetration, increasing 5G adoption, and multiple potential catalysts on the horizon, the brokerage remains optimistic about the telecom giant’s long-term growth story despite recent stock underperformance.
Disclaimer : This article is for informational and educational purposes only and does not constitute investment advice. Investors should conduct their own research and consult a SEBI-registered financial advisor before making any investment decisions.
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