CLSA maintains an ‘Outperform’ rating on Bharti Airtel with a 12-month target price of Rs 2,310, implying an upside of 26.6%. This report came after the company scheduled to list Airtel Money in the second half of 2026.
Here are the details on what CLSA has to say on the IPO plan of Bharti Airtel for Airtel Money-
Airtel Money IPO strategic
The IPO for Airtel Money, the mobile money unit of Airtel Africa, is scheduled for the second half of 2026. It is expected to raise between $1.5 billion and $2 billion, with unconfirmed reports suggesting a potential valuation of $10 billion—a fourfold increase from its 2021 valuation. London is currently considered the most likely venue for this listing.
Robust financial growth and profitability
The Airtel Money business has demonstrated strong performance, with FY26 revenue growing 36% YoY to $1.4 billion and EBITDA increasing 31% YoY to $689 million. Notably, the business is highly profitable, maintaining an EBITDA margin of 50.8%, which exceeds the 49.3% margin of Airtel’s broader African operations.
Airtel’s biggest market, Nigeria, has yet to ramp up mobile money, with only 2.7 million subscribers. Hence, strong growth of 31-36% YoY in FY26 will likely continue.
“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. We value Bharti’s 62% stake in Africa at market cap and do not include a separate value for Airtel Money,” said CLSA.
Significant growth runway and low penetration
Mobile money penetration remains low at 29% of Airtel Africa’s 184 million mobile subscribers. While East Africa accounts for 74% of the unit’s revenue, Nigeria—Airtel’s largest market—has yet to fully ramp up its mobile money services, presenting a substantial opportunity for continued growth, said CLSA.
Broad strategic growth drivers
Beyond the IPO, Bharti Airtel’s growth is expected to be driven by tariff hikes, rising mobile data penetration, and the ongoing rollout of 5G services targeting urban and key rural areas. The brokerage house said that other potential catalysts for the stock include the listing of Reliance Jio and potential relief in the long-standing Adjusted Gross Revenue (AGR) case.
“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. 5G will also boost Bharti’s enterprise offerings, and 5G fixed wireless access (FWA) is an opportunity,” said CLSA.
Bharti Airtel’s share price performance
The share price of Bharti Airtel has fallen more than 1% in the last five trading days. The stock has declined 0.5% in the last one month and 15% in the past six months. Bharti Airtel’s share price has dropped over 4% in the previous 12 months.
Bharti Airtel Q4FY26
Bharti Airtel reported a 34% year-over-year (YoY) decline in net profit to Rs 7,325 crore for the fourth quarter of FY26. The firm reported a consolidated net profit of Rs 11,021 crore in the same period a year ago. Its consolidated revenue surged 16% YoY to Rs 55,383 crore, up from Rs 47,876 crore in the corresponding quarter a year back.
Also, the company proposed a final dividend of Rs 24 per fully paid-up equity share of face value Rs 5 each, and Rs 6 per partly paid-up equity share of face value Rs 5 each.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.
