Shares of Bharti Airtel Ltd have come into focus after brokerage firm CLSA highlighted the potential value of Airtel Money, the mobile money business housed under Airtel Africa.
The brokerage has maintained an Outperform rating on Bharti Airtel and assigned a target price of ₹2,310, implying an upside of about 26.7% from current levels.
Bharti Airtel, which serves more than 650 million customers, had a market capitalisation of ₹11.1 lakh crore and its shares closed at ₹1,823, up 2.27%. The stock has delivered returns of around 243% over the past five years.
Airtel Money IPO planned for 2H26
According to CLSA, Airtel Money is expected to launch an IPO in the second half of 2026.
The brokerage estimates the business could raise between $1.5 billion and $2 billion and command a valuation of around $10 billion.
If achieved, that would be nearly four times its 2021 valuation and equivalent to around 60% of Airtel Africa’s current market capitalisation.
Strong growth in the business
Airtel Money posted robust growth during FY26.
Key numbers include:
- Revenue rose 36% year-on-year to $1.4 billion.
- EBITDA increased 31% to $689 million.
The business currently contributes around 20% of Airtel Africa’s revenue.
Africa, meanwhile, accounts for nearly 25% of Bharti Airtel’s consolidated operations.
Large growth runway remains
CLSA believes Airtel Money still has significant room to expand.
The brokerage noted that the business currently has penetration of only 29% among Airtel Africa’s 184 million subscribers.
Nigeria, one of the company’s major markets, is also yet to contribute meaningfully.
This leaves scope for further customer additions and higher transaction volumes.
Airtel expanding financial services in India
Separately, Bharti Airtel’s Indian financial services business is also gaining scale.
Airtel Money Limited, a non-deposit-taking NBFC, recently received approval from the Reserve Bank of India and is preparing for commercial operations.
The company plans to leverage Airtel’s customer base and digital capabilities to offer lending products.
During FY26:
- Monthly loan disbursements crossed ₹550 crore.
- Airtel Payments Bank had around 120 million monthly transacting users at the end of Q4FY26.
- Annualised revenue run rate reached ₹3,400 crore, up 23% year-on-year.
- Deposits stood above ₹4,600 crore, rising 27%.
₹20,000 crore investment planned
Management has outlined plans to invest ₹20,000 crore in Airtel Money over the coming years.
The company expects its digital ecosystem and analytics capabilities to support future growth.
More than 500 data scientists are working on the platform, which Airtel sees as an important long-term growth engine.
Q4FY26 financial performance
Bharti Airtel reported:
- Revenue from operations of ₹55,383 crore, up 16% from ₹47,876 crore in Q4FY25.
- EBITDA of ₹31,492 crore, up 17% from ₹27,009 crore.
However, profitability declined.
- Net profit fell 16% to ₹9,247 crore, compared with ₹12,476 crore a year earlier.
- EPS declined to ₹12.02, from ₹19.33.
Why the valuation matters
Airtel’s core telecom business remains its largest earnings driver.
However, CLSA believes the growing scale of Airtel Money and the planned IPO could help unlock value that is not fully reflected in Bharti Airtel’s current valuation.
A $10 billion valuation for Airtel Money would underline the increasing importance of digital financial services within the broader Airtel ecosystem and provide another growth avenue beyond telecom operations.
Key takeaways
- CLSA has retained an Outperform rating on Bharti Airtel.
- Target price stands at ₹2,310.
- Airtel Money could seek a listing in 2H26.
- The business could be valued at around $10 billion.
- Airtel Money generated $1.4 billion in revenue in FY26.
- Airtel plans to invest ₹20,000 crore in its financial services business.
TL;DR:
CLSA believes Airtel Money’s proposed IPO and potential $10 billion valuation could unlock value for Bharti Airtel. The brokerage expects strong growth from the digital financial services business and has maintained an Outperform rating with a target price of ₹2,310.
AI summary:
- CLSA sees Airtel Money being valued at around $10 billion.
- The mobile money business could launch an IPO in 2H26.
- Airtel Money’s FY26 revenue rose 36% to $1.4 billion.
- Bharti Airtel plans to invest ₹20,000 crore in financial services.
- CLSA has maintained an Outperform rating with a target of ₹2,310.
