Singapore Telecommunications Ltd (Singtel) is reportedly set to offload about 0.8% stake in Bharti Airtel through a block deal worth Rs 10,300 crore. The deal is priced at a floor of Rs 2,030 per share, reflecting a 3.1% discount to Bharti Airtel’s last closing price.
The stake sale is likely part of Singtel’s ongoing effort to restructure and optimise its holdings in regional telecom ventures. The Singapore-based telecom major has been gradually trimming its position to unlock capital and focus on core businesses. In May this year, the company sold a stake worth 2 billion Singapore dollars in Airtel.
In 2022 and 2024, Singtel raised a total of 3.5 billion Singapore dollars from the progressive sale of Airtel shares.
The block deal comes on the heels of a robust second-quarter performance from Bharti Airtel, which reported a 6% quarter-on-quarter rise in consolidated EBITDA, driven by better-than-expected growth in India wireless and Airtel Africa operations.
The company’s Average Revenue Per User (ARPU) — a key metric of profitability — rose ahead of expectations, while consolidated free cash flow remained healthy at Rs 14,600 crore. Bharti also reiterated that its FY26 India capex (excluding Indus Towers) will moderate further from FY25 levels, improving cash generation.
Analysts say Bharti’s premiumisation strategy and a likely tariff hike in December 2025 could boost revenues and free cash flow significantly over the next two years. The company is expected to generate Rs 1 lakh crore in free cash flow between FY26 and FY27, according to estimates by Motilal Oswal.
Analyst view: re-rating potential remains
Motilal Oswal, in its latest note, maintained a "Buy" rating on Bharti Airtel with a target price of Rs 2,365, citing continued strength in both domestic and African markets. The brokerage expects Bharti’s revenue and EBITDA to grow at a CAGR of 15% and 18%, respectively, over FY25–28, aided by tariff hikes, growth in broadband services, and strong performance in its African business.
The firm also noted that Bharti Airtel’s risk-reward remains attractive, despite the stock’s 33% year-to-date rally, outperforming the Nifty 50’s 8% gain. Potential triggers include the tariff revision, the upcoming Jio Platforms IPO, and a possible waiver on adjusted gross revenue (AGR) dues, all of which could strengthen the company’s balance sheet and earnings outlook.
The stake sale is likely part of Singtel’s ongoing effort to restructure and optimise its holdings in regional telecom ventures. The Singapore-based telecom major has been gradually trimming its position to unlock capital and focus on core businesses. In May this year, the company sold a stake worth 2 billion Singapore dollars in Airtel.
In 2022 and 2024, Singtel raised a total of 3.5 billion Singapore dollars from the progressive sale of Airtel shares.
The block deal comes on the heels of a robust second-quarter performance from Bharti Airtel, which reported a 6% quarter-on-quarter rise in consolidated EBITDA, driven by better-than-expected growth in India wireless and Airtel Africa operations.
The company’s Average Revenue Per User (ARPU) — a key metric of profitability — rose ahead of expectations, while consolidated free cash flow remained healthy at Rs 14,600 crore. Bharti also reiterated that its FY26 India capex (excluding Indus Towers) will moderate further from FY25 levels, improving cash generation.
Analysts say Bharti’s premiumisation strategy and a likely tariff hike in December 2025 could boost revenues and free cash flow significantly over the next two years. The company is expected to generate Rs 1 lakh crore in free cash flow between FY26 and FY27, according to estimates by Motilal Oswal.
Analyst view: re-rating potential remains
Motilal Oswal, in its latest note, maintained a "Buy" rating on Bharti Airtel with a target price of Rs 2,365, citing continued strength in both domestic and African markets. The brokerage expects Bharti’s revenue and EBITDA to grow at a CAGR of 15% and 18%, respectively, over FY25–28, aided by tariff hikes, growth in broadband services, and strong performance in its African business.
The firm also noted that Bharti Airtel’s risk-reward remains attractive, despite the stock’s 33% year-to-date rally, outperforming the Nifty 50’s 8% gain. Potential triggers include the tariff revision, the upcoming Jio Platforms IPO, and a possible waiver on adjusted gross revenue (AGR) dues, all of which could strengthen the company’s balance sheet and earnings outlook.
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