Bharti Airtel Ltd is Rated Hold

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for Bharti Airtel Ltd indicates a balanced view of the stock’s prospects. It suggests that while the company demonstrates solid fundamentals and growth potential, certain factors temper enthusiasm for a more aggressive 'Buy' stance. Investors are advised to maintain their existing positions rather than initiate new ones, awaiting clearer signals from the company’s financial and market performance.

Quality Assessment

As of 12 February 2026, Bharti Airtel maintains a good quality grade. The company has exhibited consistent operational strength, reflected in its ability to declare positive results for eight consecutive quarters. Notably, the Profit After Tax (PAT) for the first nine months stands at ₹19,547.60 crores, marking a robust growth rate of 27.32%. This steady profitability underscores the company’s operational resilience in a competitive telecom sector.

Return on Capital Employed (ROCE) is a key indicator of efficiency, and Bharti Airtel’s half-year ROCE is an impressive 19.46%, signalling effective utilisation of capital to generate earnings. This level of return is well above many peers, reinforcing the company’s quality credentials.

Valuation Perspective

The valuation grade for Bharti Airtel is currently assessed as fair. The stock trades at an enterprise value to capital employed ratio of 4.4, which is considered reasonable within the telecom services sector. This valuation is at a discount compared to the average historical valuations of its peers, offering a potentially attractive entry point for value-conscious investors.

Moreover, the company’s Price/Earnings to Growth (PEG) ratio stands at 0.6, indicating that the stock’s price growth is favourable relative to its earnings growth. Over the past year, the stock has delivered a return of 17.98%, while profits have surged by 59.5%, highlighting a disconnect that may appeal to investors seeking growth at a reasonable price.

Financial Trend Analysis

Bharti Airtel’s financial trend remains positive as of today. The company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 15.61% and operating profit expanding by 29.08%. These figures reflect strong top-line momentum and improving operational efficiency.

Despite being classified as a high debt company, with an average debt-to-equity ratio of 2.42 times, the latest half-year data shows a reduction to 1.77 times, signalling efforts to deleverage and strengthen the balance sheet. This reduction in leverage is a positive development, potentially lowering financial risk and interest burden going forward.

Technical Outlook

The technical grade for Bharti Airtel is described as mildly bullish. The stock has shown resilience in recent trading sessions, with a one-day gain of 0.23% and a one-week increase of 1.28%. Although the one-month and three-month returns are slightly negative at -1.28% and -2.70% respectively, the six-month return is a healthy +9.05%, and the year-to-date return stands at -4.19%.

Importantly, the stock has outperformed the BSE500 index in each of the last three annual periods, delivering consistent returns for investors. This steady performance supports the technical view that the stock is positioned for moderate upward momentum, albeit with some short-term volatility.

Additional Considerations

One factor warranting attention is the reduction in promoter confidence, as promoters have decreased their stake by 1.4% over the previous quarter, now holding 48.87% of the company. While this does not necessarily indicate a negative outlook, it is a signal that investors should monitor closely for any further changes in promoter holdings or strategic direction.

Overall, the 'Hold' rating reflects a nuanced view that balances Bharti Airtel’s strong operational performance and fair valuation against the challenges posed by its leverage and promoter stake reduction. Investors should consider these factors carefully when making portfolio decisions.

Implications for Investors

For investors, the 'Hold' rating on Bharti Airtel suggests a cautious approach. The company’s solid fundamentals and positive financial trends provide a foundation for steady returns, but the fair valuation and moderate technical outlook imply limited upside in the near term. Investors currently holding the stock may choose to retain their positions, benefiting from the company’s consistent profitability and growth trajectory.

New investors might consider waiting for clearer signals of improvement in valuation or technical momentum before committing fresh capital. Monitoring the company’s debt reduction progress and promoter activity will be crucial in assessing future potential.

Sector and Market Context

Within the telecom services sector, Bharti Airtel remains a large-cap leader with a significant market presence. Its performance relative to peers, especially in terms of ROCE and profit growth, is commendable. The stock’s current discount to peer valuations offers a relative value opportunity, but sector-specific challenges such as regulatory pressures and competitive intensity remain factors to watch.

As of 12 February 2026, the broader market environment has been mixed, with the stock showing resilience despite some short-term volatility. This context reinforces the rationale behind the 'Hold' rating, reflecting a balanced risk-reward profile.

Summary

In summary, Bharti Airtel Ltd’s 'Hold' rating by MarketsMOJO, last updated on 29 December 2025, is supported by a combination of good quality, fair valuation, positive financial trends, and mildly bullish technicals as of 12 February 2026. Investors should view this rating as an indication to maintain current holdings while carefully monitoring key financial and market developments that could influence the stock’s trajectory going forward.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →