Motilal Oswal has maintained its buy rating on Bharti Airtel with an unchanged target price of ₹2,355 in its research report dated March 01, 2026. According to reports from Moneycontrol, the brokerage firm's sum-of-the-parts (SoTP) based valuation methodology supports this bullish outlook despite recent market volatility. The target price range spans from a bear case of ₹1,810 to a bull case of ₹2,875, providing investors with a comprehensive risk-reward assessment. Nomura has set a target of ₹2,300, while JM Financial projects a higher target of ₹2,455, indicating broad analyst confidence in the company's strategic direction. The consensus points towards a 'BUY' rating with average price targets around ₹2,300-₹2,500, implying a potential upside of over 23% from current levels.
The stock experienced a sharp decline of approximately 6%, erasing approximately ₹700 billion in market capitalization amidst broader market headwinds. As reported by Moneycontrol, the market reaction reflects investor concerns about the company's capital allocation strategy and the overall outlay of ₹200 billion for the new business venture. The stock's intraday low touched ₹1,921.80 on February 24, 2026, reflecting its sharpest decline in three months. Despite this volatility, the company's market capitalization remained substantial, hovering around ₹10.71 to ₹11.45 trillion as of late February/early March 2026. The correction has brought Bharti Airtel's India business to an implied valuation of approximately 10x FY28 EBITDA on current estimates. However, recent investor communications suggest this sell-off may be overblown, with the company's current TTM P/E ratio standing around 35.7x to 39.4x as of February 2026, considerably higher than the peer average of approximately 19.7x.
The company announced an NBFC foray with an overall outlay of ₹200 billion, with 70% contribution by Bharti Airtel. According to Moneycontrol, this strategic move has shifted investor focus toward the company's capital allocation plans and long-term growth strategy. The substantial investment will be phased over several years, with an initial outlay of 10-15% in the first year, signaling a commitment to expanding its fintech operations. This leverages the company's extensive 370 million-plus customer base and represents a strategic expansion into the financial services sector. The move aims to tap into India's credit gap, with the Indian NBFC sector valued at $326 billion in 2023 demonstrating robust growth, though mid-sized players face funding cost pressures and tighter investor selectivity. The proposed investment could strain the company's balance sheet if the NBFC arm does not yield expected returns or if unforeseen asset quality issues arise, a common risk in the NBFC space.
Beyond fintech, Bharti Airtel is set to increase its stake in Indus Towers, holding board approval for an additional 5% stake to bolster its position from the current 51%. Concurrently, the company plans to consolidate its stake in Airtel Africa, acquiring a 16% stake from the promoter family to increase its holding from 63%. These strategic asset enhancements are viewed by analysts as key drivers of long-term shareholder value, diverging from a purely dividend-centric investment thesis. The company also signaled a move towards a progressive dividend policy, addressing investor concerns about capital allocation while positioning for future growth opportunities. The company is projected to become net cash positive (excluding leases) by FY28, potentially generating over ₹1.3 trillion in free cash flow between FY26 and FY28.
Bharti's Chairman hosted an investor call to address key investor concerns around capital allocation, promoter stake sales, succession planning, and plans for group subsidiaries. As reported by Moneycontrol, the Chairman's key message emphasized investing in the company for its potential growth opportunities while highlighting the group's long history of judicious capital allocation, rather than focusing solely on dividend payments. This communication appears to have helped stabilize investor sentiment following the initial market reaction. Motilal Oswal Financial Services views the recent stock correction as exaggerated, pointing to the company's potential to generate over ₹1.3 trillion in free cash flow between FY26 and FY28. The company's ability to turn net cash (excluding leases) by FY28, driven by stable capital expenditure and potential tariff increases, remains a key projection for analysts. Future growth drivers include anticipated tariff hikes in India, accelerated growth in home broadband, and continued expansion in its Africa business.
