Moody’s Ratings on Tuesday upgraded Bharti Airtel Ltd.’s long-term issuer rating to Baa2 from Baa3, while revising its outlook to ‘stable’ from ‘positive’, citing the telecom major’s improved financial profile, steadily expanding market share, and a more benign competitive and regulatory landscape in India.
“The rating upgrade reflects a significant improvement in Bharti’s financial profile and its steadily increasing market share, supported by structural changes in India’s fast-growing mobile sector,” said Nidhi Dhruv, Vice President and Senior Credit Officer at Moody’s Ratings. “Moderating competition and our expectations of a relatively supportive regulatory environment also contribute to the upgrade,” she added.
Dhruv further noted that Bharti’s “established market position in the resilient Indian telecom industry, solid financial profile with leverage trending to 1.5x-1.8x over the next 12-18 months, demonstrated access to capital markets and supportive shareholders position it well to be rated above India’s sovereign rating.”
However, she cautioned that “the linkages with the Indian economy constrain Bharti to be rated no more than one notch above the sovereign.”
Moody’s said the Baa2 rating reflects Bharti Airtel’s strong market position, improved leverage profile, and prudent financial policies.
India's second largest telco; amongst world's top three
The company remains India’s second-largest mobile operator in a fast-growing market supported by favourable demographics, extensive pan-India network coverage, and large spectrum holdings.
On a global scale, Bharti ranks among the top three telecom service providers by subscribers, with a total user base of 624 million.
Further, the credit ratings agency noted that Bharti’s deleveraging, driven by earnings growth and debt reduction, has been central to the upgrade. The company’s prepayment of ₹260 billion ($3 billion) in higher-cost deferred spectrum liabilities in FY2024-25 has accelerated its balance sheet improvement. The agency expects Bharti’s consolidated leverage—measured by adjusted debt-to-EBITDA—to improve to 1.8x by FY2025-26, from 2.3x in FY2024-25, and to reach 1.5x by FY2026-27.
The telecom major's subscriber market share has climbed steadily to 33.5% as of September 2025, up from 28% in March 2020, as it continues to gain ground on Vodafone Idea. Moody’s noted that the company’s revenue market share is likely even higher, reflecting its industry-leading average revenue per user (ARPU) metrics.
During the first half of FY2025-26, Bharti reported 17% year-on-year revenue growth to ₹1.02 trillion, while EBITDA rose 20% to ₹580.9 billion. This growth was largely driven by its Indian operations, which contribute roughly 75-80% of total revenue and earnings. Moody’s said the strong domestic performance underpins the company’s solid cash flow generation and financial flexibility.
Moody's acknowledged that Bharti remains subject to regulatory and emerging market risks in some geographies, but noted that India’s telecom environment has become “relatively stable following the settlement of the Adjusted Gross Revenue (AGR) issue in 2021.” Moody’s expects the regulator to remain supportive of a three-player market structure, which has stabilised competition.
African operations expose co to risks
Bharti’s 62.73%-owned subsidiary, Airtel Africa plc, continues to expose the group to macroeconomic and currency risks across 14 African countries, including markets in East and Francophone Africa.
However, Moody’s said the diversification of Airtel Africa’s operations and its financial discipline help offset risks tied to foreign exchange volatility and country-specific regulatory uncertainty.
Airtel Africa contributes 20–25% of Bharti’s consolidated EBITDA, providing an important revenue stream outside India.
The agency noted that the recent monetary tightening by the Central Bank of Nigeria has stabilised the Nigerian naira, which has appreciated over recent quarters. This trend, Moody’s said, “should provide a more predictable operating environment, further supporting Airtel Africa’s growth trajectory.”
“The rating upgrade reflects a significant improvement in Bharti’s financial profile and its steadily increasing market share, supported by structural changes in India’s fast-growing mobile sector,” said Nidhi Dhruv, Vice President and Senior Credit Officer at Moody’s Ratings. “Moderating competition and our expectations of a relatively supportive regulatory environment also contribute to the upgrade,” she added.
Dhruv further noted that Bharti’s “established market position in the resilient Indian telecom industry, solid financial profile with leverage trending to 1.5x-1.8x over the next 12-18 months, demonstrated access to capital markets and supportive shareholders position it well to be rated above India’s sovereign rating.”
However, she cautioned that “the linkages with the Indian economy constrain Bharti to be rated no more than one notch above the sovereign.”
Moody’s said the Baa2 rating reflects Bharti Airtel’s strong market position, improved leverage profile, and prudent financial policies.
India's second largest telco; amongst world's top three
The company remains India’s second-largest mobile operator in a fast-growing market supported by favourable demographics, extensive pan-India network coverage, and large spectrum holdings.
On a global scale, Bharti ranks among the top three telecom service providers by subscribers, with a total user base of 624 million.
Further, the credit ratings agency noted that Bharti’s deleveraging, driven by earnings growth and debt reduction, has been central to the upgrade. The company’s prepayment of ₹260 billion ($3 billion) in higher-cost deferred spectrum liabilities in FY2024-25 has accelerated its balance sheet improvement. The agency expects Bharti’s consolidated leverage—measured by adjusted debt-to-EBITDA—to improve to 1.8x by FY2025-26, from 2.3x in FY2024-25, and to reach 1.5x by FY2026-27.
The telecom major's subscriber market share has climbed steadily to 33.5% as of September 2025, up from 28% in March 2020, as it continues to gain ground on Vodafone Idea. Moody’s noted that the company’s revenue market share is likely even higher, reflecting its industry-leading average revenue per user (ARPU) metrics.
During the first half of FY2025-26, Bharti reported 17% year-on-year revenue growth to ₹1.02 trillion, while EBITDA rose 20% to ₹580.9 billion. This growth was largely driven by its Indian operations, which contribute roughly 75-80% of total revenue and earnings. Moody’s said the strong domestic performance underpins the company’s solid cash flow generation and financial flexibility.
Moody's acknowledged that Bharti remains subject to regulatory and emerging market risks in some geographies, but noted that India’s telecom environment has become “relatively stable following the settlement of the Adjusted Gross Revenue (AGR) issue in 2021.” Moody’s expects the regulator to remain supportive of a three-player market structure, which has stabilised competition.
African operations expose co to risks
Bharti’s 62.73%-owned subsidiary, Airtel Africa plc, continues to expose the group to macroeconomic and currency risks across 14 African countries, including markets in East and Francophone Africa.
However, Moody’s said the diversification of Airtel Africa’s operations and its financial discipline help offset risks tied to foreign exchange volatility and country-specific regulatory uncertainty.
Airtel Africa contributes 20–25% of Bharti’s consolidated EBITDA, providing an important revenue stream outside India.
The agency noted that the recent monetary tightening by the Central Bank of Nigeria has stabilised the Nigerian naira, which has appreciated over recent quarters. This trend, Moody’s said, “should provide a more predictable operating environment, further supporting Airtel Africa’s growth trajectory.”
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