Bharti Airtel Shares Dip Following Q2 Results as Citi Flags Plan Reversal

Shares of telecom major Bharti Airtel experienced a downward movement during mid-morning trading on Monday following the release of the company's second-quarter financial results. The stock declined by 1.24 per cent to trade at ₹2,059.60 on the National Stock Exchange (NSE).

Opening the session at ₹2,086, the stock touched an intraday low of ₹2,044.10. Market activity showed a slight sell bias, with approximately 51 per cent of orders placed on the sell side as of 11:40 am. Total traded volume for the counter stood at 21.66 lakh shares, resulting in a traded value of ₹445 crore. The stock's 52-week trading range stands between ₹1,726.30 and ₹2,174.50.

In its financial performance for the quarter, Bharti Airtel reported a consolidated revenue growth of 16.7 per cent year-on-year, reaching ₹60,878 crore. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 17.8 per cent to ₹35,240 crore, maintaining a margin of 57.9 per cent. Furthermore, net income before exceptional items was reported at ₹9,015 crore, marking a 32.7 per cent increase compared to the same period in the previous year.

Despite the positive financial figures reported across revenue and net income, market sentiment faced headwinds. Financial services firm Citi raised concerns regarding a potential ₹299 plan reversal, which contributed to the cautious approach from investors. However, analysts tracking the stock continue to maintain a Buy rating on the telecom operator.

"Bharti Airtel's latest quarterly numbers demonstrate solid top-line and bottom-line growth, reflecting the fundamental strength of the telecom sector. However, minor stock corrections following earnings reports often highlight that public markets closely monitor pricing strategies and plan revisions, such as the ₹299 plan reversal noted by analysts. For long-term investors, maintaining a balanced view between strong operational performance and regulatory or pricing adjustments is essential." — Dr. Shishir Gupta, Founder & CEO, StartupLanes