On June 24, 2026, S&P Global Ratings upgraded Bharti Airtel's long-term issuer credit rating to 'BBB+' from 'BBB-', while also raising the ratings on the company's senior unsecured debt to 'BBB+' from 'BBB'. According to reports from PTI, the rating agency cited strong growth in Africa and India, along with balance sheet discipline as key factors for the upgrade. The stable outlook reflects expectations that Bharti Airtel will continue paying down debt as earnings and cash flows strengthen, while maintaining supportive leverage tolerance for the 'BBB+' rating over the next 12-24 months. The upgrade positions the telecom giant among the stable and rapidly growing companies for the next two years, attracting global investors and giving confidence to investors looking at Bharti Airtel as a stable, rapidly growing, and debt-responsible company. As per S&P Global's analysis, the major contribution to Bharti Airtel's growth comes from expansion in Indian and African markets, resulting in strong cash flow and higher earnings.
For Bharti Airtel's India operations, the company is estimated to see subscriber numbers increase by 3-4% over the next year and average revenue per user grow by 5-7%, as reported by PTI. As of March 31, 2026, Airtel's India Mobile revenue had increased by 8.3% year-on-year, driven by higher realisations and an expanding customer base. The company achieved strong average revenue per user (ARPU) growth, with an ARPU of ₹257 for Q4 FY26, up from ₹245 in Q4 FY25. S&P noted that Bharti Airtel's India operations will benefit from higher consumer spending on telecom services, subscriber additions, and growing data consumption. The company's efforts in driving premiumisation and churn from other players are expected to support earnings growth in India, with S&P Global highlighting that users are spending more money on higher-tier data plans because of the growing ARPU. Bharti Airtel's increasing market share compared to its competitors is also contributing to the positive outlook.
Operating performance at Bharti Airtel's African businesses is stronger-than-expected and is seen outpacing earnings growth from India operations over the next 12-24 months, according to PTI. Under S&P's base case, the company projects the African customer base to grow 9-11% annually, with 5-7% annual growth in ARPU in US dollars through the fiscal year ending March 31, 2028. The rebasing of Africa's earnings also reflects their local currencies' relative strength against the Indian rupee, which has depreciated 5-7% against the US dollar over the past six months. S&P forecasts that Africa earnings will rise to 25-27% of Bharti Airtel's consolidated EBITDA, up from previous estimates of about 20%. By FY28, Africa could make up about a quarter of Airtel's total earnings, signaling that both continents are key players in the company's future. S&P Global reports that Bharti Airtel has a strong base in 14 African countries, which are performing even better than expected, with Africa's performance outpacing India's earnings growth.
S&P forecasts the company's consolidated EBITDA will increase by 8-10% annually over the subsequent two years, after a 28% increase in fiscal 2026. The company is expected to increase capital expenditure to fund new growth drivers, with S&P projecting capex to rise annually and reach around ₹56,500 crore by FY28, up 25% from ₹45,200 crore in FY26. The increased capex will be used for the company's data centre business (Nxtra Data), cloud services, and African operations. Meanwhile, Bharti Airtel's India financial services segment will require more capital investments as it ramps up meaningfully over the next few years, though the company is unlikely to need large amounts spent on spectrum auctions at least until FY30, when its next band of radiowaves will be up for renewal. S&P Global notes that Bharti Airtel is not only earning through its operations and paying off its debt, but also focusing on funding future expansion projects.
According to S&P Global's analysis, Bharti Airtel demonstrates strong financial metrics with a 'Funds From Operations (FFO) to Debt' ratio of 43.8%, translating to strong cash flow with lower debt and higher earnings. This ratio is expected to climb to 50-52% by 2027 and may even cross 60% by 2028, indicating improving financial health. The company's current debt stands at ₹465 billion (₹46,700 crore), for which Bharti Airtel relies on dividend payouts to pay off. However, S&P Global points out that the company is not only earning through operations and paying off debt, but also focusing on funding future growth. S&P expects the company to maintain a supportive leverage tolerance for the 'BBB+' rating over the next 12-24 months, with the rating agency noting that the stable outlook is contingent on maintaining leverage and cash flow growth. The company has also rewarded higher dividend payouts to its investors, reflecting confidence in its financial position.
