Bharti Airtel shares fell sharply in early trade on Friday after reports that Singapore Telecommunications Ltd (Singtel) is set to sell a portion of its stake in the telecom major through a large block deal.
At 9:29 am, Bharti Airtel shares were down 3.66% at Rs 2,018 on the Bombay Stock Exchange (BSE), with heavy volumes recorded in the opening minutes of trade. The decline came even as broader market sentiment remained weak.
SINGTEL TO SELL 0.8% STAKE IN AIRTEL
According to deal details, Singtel’s subsidiary, Pastel Ltd, will offload about 5.1 crore shares—roughly 0.8% of Bharti Airtel’s equity—through a block deal valued at around Rs 10,300 crore. The transaction is being executed at a floor price of Rs 2,030 per share, representing a 3.1% discount to Airtel’s Thursday closing price of Rs 2,094.60 on the BSE.
JPMorgan is acting as the broker for the deal.
The sale is part of Singtel’s ongoing capital management and portfolio optimisation strategy. The Singapore-based telecom group has been gradually reducing its stake in Bharti Airtel over the past few years to unlock value and redeploy capital into its core businesses.
In May 2025, Singtel sold a 1.2% direct stake in Airtel for approximately Rs 12,400 crore (S$2 billion) through a private placement to global and Indian institutional investors. Between 2022 and 2024, it raised around S$3.5 billion from earlier stake sales.
Singtel, one of Airtel’s oldest and largest international shareholders, continues to maintain a significant holding in the Indian telecom company. Its decision to offload a small stake this time is seen as part of broader capital restructuring rather than an exit.
The company had earlier outlined plans to rebalance its investment portfolio across Asian markets, aiming to focus on 5G expansion, enterprise connectivity, and digital services.
AIRTEL’S STRONG FUNDAMENTALS INTACT
The block deal comes on the heels of a robust quarterly performance by Bharti Airtel. For the July–September quarter (Q2 FY26), the company reported an 89% year-on-year jump in consolidated net profit to Rs 6,791.7 crore, compared to Rs 3,593.2 crore in the same period last year.
Revenue rose 25.7% year-on-year to Rs 52,145 crore, driven by strong growth in its India wireless and Airtel Africa businesses.
Airtel’s Average Revenue Per User (ARPU)—a key measure of profitability—continued to rise, reflecting the company’s successful premiumisation strategy.
Consolidated EBITDA grew 6% quarter-on-quarter, supported by a healthy improvement in both domestic and international operations.
The company also reported a robust consolidated free cash flow of Rs 14,600 crore and said it expects lower capital expenditure in FY26, excluding investments in Indus Towers. This move is likely to strengthen its balance sheet and improve cash generation.
Brokerages remain optimistic about the stock despite the short-term pressure. Motilal Oswal has retained a Buy rating on Bharti Airtel, with a target price of Rs 2,365.
The brokerage expects the company’s revenue and EBITDA to grow at a compounded annual growth rate (CAGR) of 15% and 18%, respectively, between FY25 and FY28, led by tariff hikes, broadband expansion and sustained growth in its African business.
Analysts also expect Bharti Airtel to generate free cash flow of nearly Rs 1 lakh crore between FY26 and FY27, driven by margin expansion and stable capital efficiency.
While the stock reacted negatively to the block deal, analysts believe the pressure may be temporary. The transaction is expected to improve liquidity in the counter and provide long-term investors with an entry opportunity at lower levels.
Bharti Airtel remains among the most fundamentally strong plays in the telecom sector, supported by steady subscriber additions, rising data usage, and potential tariff revisions later in the fiscal year.
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