The headline numbers for Bharti Airtel just hit the tape on February 5, 2026, and they look pretty grim at first glance. Consolidated net profit for the third quarter plummeted 55% year-on-year, landing at Rs 6,630.5 crore. But before you panic-sell, look closer. This isn’t a core business collapse. It is mostly a “math problem” involving a high base from last year. Back in Q3 FY25, Airtel got a massive one-time boost from reclassifying Indus Towers. That distorted the year-over-year comparison. In reality, if you strip away the exceptional items, the underlying profit actually climbed by 25%. It’s a classic example of why you can’t just trust the top-level percentages.
Beyond the high base, a new factor is eating into the bottom line: the New Labour Codes. Implementation of these codes in late 2025 forced Airtel to set aside Rs 257 crore for higher gratuity and employee benefits. This isn’t just an Airtel problem; it’s a systemic shift across corporate India this February. Despite these hits, the operational engine is actually humming. Revenue from operations jumped nearly 20% to over Rs 53,000 crore. The India business is thriving, particularly in the mobile segment where the Average Revenue Per User (ARPU) hit an industry-leading Rs 259. That gap between Airtel and its rivals is widening, showing that their “premiumization” strategy is actually working.
The most encouraging sign? Africa is delivering. While currency devaluations are still a headache, constant currency revenue for the Africa division jumped 25%. They are adding millions of customers and expanding their fiber footprint. Airtel is even partnering with Google to launch an AI hub in Vizag. They aren’t just a telecom firm anymore; they are positioning themselves as a digital infrastructure powerhouse. So, while the 55% profit drop makes for a scary headline, the 2026 reality is a company that is deleveraging, growing its customer base, and successfully hiking its margins. The market is bumpy, but the core is solid.
