Bharti Airtel Share Price Target 2026: 'Highest ARPU' - Buy for 40% returns, says Axis Securities | Rationale explained

Bharti Airtel share price target: Domestic brokerage house Axis Securities remains bullish on Bharti Airtel, assigning an Overweight call on the telecom major with a target price of ₹2,530 per share, implying an upside potential of 40%. As per the report, the teleco has the highest Average Revenue Per User (ARPU) in the industry.

The telecom stock has lost 5.5% in one month, 0.5% in six months, and 1.2% in one year. In the last one year, it has risen 185%.

Bharti Airtel, headquartered in New Delhi, is an Indian multinational telecommunications company with operations across 18 countries in South Asia, Africa and the Channel Islands. It is India's second-largest telecom operator and has a strong domestic presence alongside a broad digital services portfolio comprising fibre optic networks, mobile and desktop telephony, and other digital solutions.

Why is Axis bullish on Airtel?

Axis Securities' positive view is driven by strong subscriber additions, improving ARPU, network expansion, growing B2B opportunities, increasing use of artificial intelligence and the long-term potential of the Africa business.

Customer Additions: Airtel's Indian mobile business recorded strong growth during the quarter, helped by robust subscriber additions and customer upgrades to higher-value plans. The company added 3.3 million revenue-earning users and 5 million smartphone data users. Its postpaid segment also saw one of its strongest quarterly additions, with 1 million new users joining the platform, taking postpaid subscribers to more than 8% of Airtel's total customer base, the brokerage noted.

Highest ARPU: Airtel's average revenue per user (ARPU) climbed to ₹264, supported by the increasing adoption of 5G, higher data usage, customer premiumisation and the benefit of an additional day in the calendar quarter, according to Axis.

The brokerage noted that management sees further ARPU growth as being closely linked to a repair in the industry's tariff structure. This would involve a shift towards charging customers directly for higher data consumption instead of continuing to offer unlimited data at low price points.

Network Expansion and AI: Alongside subscriber growth, Airtel is continuing to expand and strengthen its network infrastructure. The company is increasing cable capacity, connecting more data centres and further developing its 139,000 km optical fibre backbone.

“Bharti Airtel continues to focus on its transport network by expanding cable capacity, connecting data centres, and expanding its existing 139,000 km optical fibre backbone. Moreover, its capital expenditure allocation is actively redirecting to fibre transport, homes, and data centres as its Radio Capex moderates while standalone 5G Capex remains modest and software-led. Airtel Business is capturing high-margin connectivity, B2B, and IoT demand while navigating lower margins in expanding cloud and CPaaS operations,” said the brokerage.

Axis also pointed to Airtel's growing use of artificial intelligence as another important part of its strategy. The telecom major is deploying agentic AI platforms to improve operational speed, safety, privacy and cost efficiency.

Africa Business: Airtel's Africa operations represent another key component of the brokerage's positive investment view. In Q1FY27, the business reported 5.7% sequential constant currency revenue growth, while Bharti Airtel increased its stake in the African business to over 79% through a share swap transaction.

The management sees considerable long-term growth potential in Africa, where telecom, smartphone and broadband penetration remains relatively low and is comparable to India's growth phase roughly a decade ago. Airtel is also scaling its growth platforms through Airtel Money, which generated more than $400 million in quarterly revenue and is preparing for a London listing. At the same time, Indus Towers is expanding its low-cost tower and energy management model into three African markets.

Summing up its view, Axis Securities said, “We maintain our BUY rating on the stock, driven by the company's superior margins, impressive subscriber growth, and increased 4G conversions.”

Axis Securities' other top stock picks for September

Apart from Airtel, Axis Securities has identified 14 other stocks that it believes could deliver returns of up to 32% over the medium to long term. The brokerage remains overweight on sectors including BFSI, telecom, capital goods, healthcare, auto, power and energy, while also maintaining a positive outlook on select discretionary and retail consumption plays.

Varun Beverages and CCL Products (India) have target prices of ₹530 and ₹1,425, respectively, with an upside potential of 32% each. ICICI Bank has a target price of ₹1,800, indicating a potential upside of 24%, while Bajaj Finance has a target price of ₹1,305, with a 23% upside potential.

Dalmia Bharat and City Union Bank have target prices of ₹2,260 and ₹280, respectively, with an upside potential of 22% each. Kotak Mahindra Bank and Eternal have target prices of ₹500 and ₹390, respectively, implying a 19% upside potential. Nestle India has a target price of ₹1,765, with an upside potential of 18%, while LG Electronics India has a target price of ₹1,965, indicating a 16% potential upside.

Minda Corporation has an upside potential of 14%, while APL Apollo Tubes and Healthcare Global Enterprises have an upside potentials of 12% each. Moreover, Axis indicates an 11% upside for Chalet Hotels. Meanwhile, Axis Securities has increased its December 2026 Nifty target to 27,360 based on an earnings upgrade of 0.3% each in Nifty EPS for FY27 and FY28.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.