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India's Bharti Airtel posts larger Q2 profit, increased by higher tariffs

Bharti Airtel reported an over twofold rise in its secondquarter profit on Monday, as the telecom operator's first tariff walking in over 2 years boosted its profits per user.

India's No. 2 cordless carrier's consolidated net earnings leapt 168% to 35.93 billion rupees ($ 427.49 million) in the July-September quarter.

Bharti Airtel had a one-time loss of 8.54 billion rupees during the quarter arising from an unit's foreign exchange loss due to currency devaluation.

The business's typical revenue per user (ARPU), a key efficiency metric for telecom firms, where Airtel leads its competitors by a broad margin, rose 10% sequentially to 233 rupees.

This is greater than Reliance Industries-owned Jio's 195.1 rupees for the exact same period.

All 3 Indian mobile carriers-Jio, Bharti Airtel , and Vodafone Idea- increased their tariffs in June for the very first time in nearly 3 years, intending to recover billions invested in 5G technology.

While the business had actually not raised tariffs since 2021, they spent heavily on enhancing their facilities and are now moving away from aggressive competitors for market share towards increasing success.

Earlier this month, Jio published a 23% jump in earnings driven by the rate hikes, while Vodafone Concept is yet to publish results.

Bharti Airtel's user base fell 0.7% sequentially to 407 million since Sept. 30, hurt by users switching to less expensive options after the tariff walking.

Its income increased about 12% to 414.73 billion rupees and total expenditures likewise grew 12% in the second-quarter.

The business likewise appointed its current Chief Operation Officer Shashwat Sharma as its CEO, effective Jan. 1, 2026.

Shares of Bharti Airtel closed flat ahead of outcomes.

(source: Reuters)