Airtel Eyes Further Tariff Hikes for Financial Stability

Bharti Airtel has indicated that further tariff hikes are necessary to bolster financial stability. The company plans to reduce network investment, exit low-margin sectors, and focus on enhancing digital capacities. Airtel reported robust profits driven by tariff hikes and consolidation benefits.

Bharti Airtel, India's telecom giant, has announced the need for further tariff rises to ensure the sector's financial stability. Despite recent tariff increases ranging from 10-21%, Vice Chairman Gopal Vittal emphasized the necessity for additional hikes during the company's recent earnings call.

Airtel plans to lower network investments but will enhance its transmission capacity and home broadband services. In a strategic move, the company will exit its low-margin wholesale voice and messaging business.

The telecom firm reported a significant increase in consolidated net profit, jumping over five-fold to Rs 16,134.6 crore, driven largely by tariff hikes and the consolidation of its Indus Tower business. Revenue surged 19% to Rs 45,129.3 crore year-on-year, while ARPU rose to Rs 245.