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ETMarkets.com Bharti Airtel’s stellar quarterly performance has reaffirmed investor confidence in the telecom major’s long-term growth story, driven by robust fibre broadband additions, expanding Africa operations, and rising ARPUs (average revenue per user).According to Gaurang Shah, Head Investment Strategist at Geojit Investments, the Africa business — once a drag on Airtel’s balance sheet — is now turning into a key growth engine.“The African business, which earlier weighed on earnings, is now stabilizing and expanding its customer base. The key here is sustainability before improvement, and Airtel seems to be achieving both,” Shah told ET Now.He added that higher realizations and improving subscriber mix are strengthening Airtel’s financial performance across markets.ARPU headed toward ₹275–300, domestic growth strongShah said Airtel’s domestic operations continue to show strong momentum, with ARPU currently around ₹256 and expected to rise significantly in the coming quarters.Live EventsYou Might Also Like:Bharti Airtel Q2 Results: Cons profit soars 89% YoY to Rs 6,792 crore, revenue rises 26%; ARPU at Rs 256“ARPU levels are improving steadily. Across telecom service providers, we’re seeing ARPUs inch toward ₹275–300 over the next few quarters,” he said.He attributed this growth to the steady increase in smartphone penetration and higher data consumption among Indian users.“With India adding millions of smartphone users every month, the revenue potential per user will only grow. The domestic business looks absolutely robust and well-positioned for the next growth phase,” he noted.EBITDA margin crosses 48%, beats estimatesAirtel reported an EBITDA margin above 48%, surpassing market expectations. Shah said this reflects the company’s operational efficiency and strong revenue mix from both data and voice segments.You Might Also Like:Bharti Airtel shares rise over 2% after Q2 PAT surges 89% YoY“The margin performance is better than expected. Efficiency levels have improved considerably, and the data-to-voice ratio is driving profitability,” he said.Airtel’s strategic focus on premium customers, broadband expansion, and cost optimization has contributed to the margin boost.Africa business transformation a key positiveOnce seen as a risky bet, Airtel Africa has become a major contributor to overall revenue growth. Subscriber expansion and improving realizations in key African markets have strengthened its earnings profile.“Africa has turned from being a balance-sheet concern to a meaningful growth contributor. If the region continues to show stability and revenue visibility, Airtel will have a strong dual engine — domestic and African markets — propelling its performance,” Shah said.You Might Also Like:Bharti Airtel board approves acquiring 5 pc additional stake in Indus TowersTariff hikes likely by late 2025 or early 2026?Shah also hinted that the next round of tariff hikes could come by late 2025 or early 2026, potentially lifting sector-wide profitability.“Street discussions suggest a likely tariff hike by the end of 2025 or early 2026. That could further strengthen EBITDA margins across telecom operators,” he said.The expected tariff revision, coupled with higher ARPUs and efficiency gains, could cement Airtel’s market leadership.Key takeawaysAirtel’s Africa business turnaround is driving profitability.ARPU to rise from ₹256 to ₹275–300 over the next few quarters.EBITDA margin beats estimates at over 48%, signaling strong operational control.Tariff hikes likely by end-2025 or early-2026.Domestic and Africa segments together to sustain long-term growth momentum.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) Read More News onbharti airtelBharti Airtel results | Airtel ARPU 2025Gaurang Shah Geojit InvestmentsAirtel Africa business growthAirtel EBITDA margin | telecom tariff hike 2025Airtel vs Jio performancAirtel Q2 results analysisBharti Airtel revenue growthtelecom sector outlook Indiamobile data consumption India (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless (You can now subscribe to our ETMarkets WhatsApp channel)Read More News onbharti airtelBharti Airtel results | Airtel ARPU 2025Gaurang Shah Geojit InvestmentsAirtel Africa business growthAirtel EBITDA margin | telecom tariff hike 2025Airtel vs Jio performancAirtel Q2 results analysisBharti Airtel revenue growthtelecom sector outlook Indiamobile data consumption India(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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