S&P Global Ratings has upgraded Bharti Airtel Limited’s long-term issuer credit rating to ‘BBB+’ from ‘BBB’, with a stable outlook, effective June 24, 2026. At the same time, S&P also raised its ratings on the senior unsecured debt issued by the company to ‘BBB+’ from ‘BBB’.

Key factors driving this rating action include:

  • Sustained growth: Subscriber base projected to grow 3-4 per cent annually with average revenue per user (ARPU) expansion of 5-7 per cent, driven by higher consumer spending and premiumisation efforts.
  • Africa outperformance: African customer base expected to grow 9-11 per cent annually, with Africa earnings projected to rise to 25-27 per cent of consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) by fiscal 2028.
  • Financial resilience: Consolidated EBITDA forecast to grow 8-10 per cent annually; funds from operations (FFO)-to-debt ratio expected to improve to 50-52 per cent in fiscal 2027 and around 60 per cent by fiscal 2028.

Key highlights:

  • Earnings growth: India operations revenue to grow 6-8 per cent annually through fiscal 2028, supported by ARPU growth and subscriber additions. Adjusted EBITDA margin stable at around 58 per cent.
  • Africa performance: Revenue growth of 22-24 per cent in fiscal 2027 and 16-18 per cent in fiscal 2028, outpacing India business earnings over the next 12–24 months.
  • Financial strength: Consolidated EBITDA projected at Rs 1.35 trillion in fiscal 2027 and Rs 1.49 trillion in fiscal 2028; debt-to-EBITDA ratio improving to 1.5 times by fiscal 2027.
  • Capex: Capital expenditure (capex) to rise to Rs 540-570 billion through fiscal 2028, directed toward data centres (Nxtra Data Limited), cloud services, and African operations.
  • Stable outlook: Reflects expectation of expanding earnings and cash flows amid rational industry competition, with FFO-to-debt ratio forecast above 50 per cent over the next 12-24 months.
  • Liquidity: Assessed as adequate, with liquidity sources covering uses by around 1.3 times over the 12 months ending March 31, 2027, supported by strong operating cash flows and diversified funding access.