Moody’s upgrades Bharti Airtel to Baa2, cites stronger financial profile and market position

Moody’s Ratings has upgraded Bharti Airtel Ltd’s issuer rating to Baa2 from Baa3 and changed the outlook to stable from positive, citing a significant improvement in the company’s financial profile and market position.

"The rating upgrade reflects a significant improvement in Bharti’s financial profile and its steadily increasing market share, supported by structural changes in India’s fast-growing mobile sector," said Nidhi Dhruv, Vice President and Senior Credit Officer at Moody’s Ratings. "Moderating competition and our expectations of a relatively supportive regulatory environment also contribute to the upgrade."

Dhruv added that Bharti’s established position in the resilient Indian telecom industry, solid balance sheet, and supportive shareholders "position it well to be rated above India’s sovereign rating," although its close linkages to the Indian economy cap the rating at one notch above the sovereign.

Moody’s said Bharti’s Baa2 rating reflects its strong domestic and global market presence, improved leverage profile, and prudent financial management. The company ranks among the world’s top three telecom service providers by subscribers, with 624 million users across operations in 17 countries.

The agency noted that Bharti’s leverage, measured by adjusted debt-to-EBITDA, is expected to improve to 1.8x by FY2025–26 and further to 1.5x by FY2026–27, aided by earnings growth and debt reduction. The company prepaid ₹260 billion ($3 billion) in deferred spectrum liabilities during FY2024–25, accelerating its deleveraging.

Bharti’s consolidated revenue rose 17% year-on-year to ₹1.02 trillion, while EBITDA grew 20% to ₹580.9 billion in the first half of FY2025–26, driven primarily by its Indian operations, which account for 75–80% of total revenue and earnings.

Moody’s said Bharti’s liquidity remains "excellent," with ₹134 billion in cash and short-term investments as of September 30, sufficient to cover upcoming debt maturities, capital spending, and dividends over the next 18 months.

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