Airtel ARPU rises to Rs 271 in Q2; profit up 31% to Rs 8,888 crore

Bharti Airtel reported that its average revenue per user (ARPU), the amount it earns on average from each mobile customer each month, rose to Rs 271 in the July-September 2026 quarter from Rs 256 a year earlier. The company's consolidated net profit for the second quarter of 2026-27 (Q2 FY27) rose about 31% from a year earlier to about Rs 8,888 crore, and consolidated revenue from operations grew 16.7% to about Rs 60,878 crore, according to the results released on Thursday, 5 November 2026. Profit was up about 9% from the previous quarter's Rs 8,167 crore. One international news agency reported that the profit was below analysts' expectations because of higher network costs.

ARPU is the single most watched number in Indian telecom. It shows whether operators are earning more from each user, through tariff increases, customers moving to costlier plans, or more customers using smartphones and data. For operators, a higher ARPU helps pay for the cost of building and running 4G and 5G networks. Airtel's rise of Rs 15 a user in a year, without a fresh round of headline tariff increases mentioned in the reports, was linked in coverage of the results to additions to its base of smartphone data customers.

For mobile users, rising ARPU is a mixed signal. It reflects healthier companies that can keep investing in networks and service quality, but it also means the average customer is paying more each month. The results did not include any announcement on tariffs.

The profit miss flagged by one news agency matters for the market. Even with strong growth, higher network operating costs, which include power, maintenance and site rentals for towers, and higher licence fees, which are linked to revenue, reduced how much of the revenue growth reached the bottom line. Investors watch these costs closely because 5G networks need more equipment and power.

Peepals calculation: ARPU rose by Rs 15 in a year (271 − 256), an increase of about 5.9% (271 ÷ 256 ≈ 1.059). Net profit rose about 8.8% from the previous quarter (8,888 ÷ 8,167 ≈ 1.088). Consolidated EBITDA of about Rs 35,240 crore against revenue of about Rs 60,878 crore implies an operating margin of roughly 58% (35,240 ÷ 60,878 ≈ 0.579). Our calculation from the reported figures.

Short-term: The results give the market a fresh read on Airtel's pricing power and costs. Share-price reactions to telecom results often turn on ARPU and margins rather than headline profit.

Long-term: Steady ARPU growth supports Airtel's investment in 5G and broadband. Whether ARPU keeps rising depends on customers upgrading plans and on any future tariff changes, which the company did not announce.

Who is affected: Airtel's mobile and broadband customers; its shareholders; rival operators Reliance Jio and Vodafone Idea, whose ARPU is compared with Airtel's; and tower and equipment companies whose business depends on telecom spending.

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