Why did Bharti Airtel stock soar to 52-week high today?
Bharti Airtel opened on the Indian bourses on Tuesday with a vote of confidence from global ratings giant, S&P.
On November 17, 2025, S&P Global Ratings raised Airtel’s long-term credit rating to ‘BBB’ from ‘BBB-’. Airtel stock soared to its 52-week high following the announcement.
This meant that the ratings firm now believed the Indian telecom carrier to have a better investment grade and that it could now ask for more credit from financiers.
S&P Global Ratings also mentioned a “positive outlook” for Airtel, signalling a vote of confidence in the trajectory of the firm.
Why did S&P Global Ratings upgrade Airtel?
In its note, S&P Global Ratings highlighted Airtel’s “strong earnings growth” and “robust cash flow” as the two main reasons for its improved credit standing.
The company’s core Indian wireless business has been on the rise.
In the recently reported September quarter, Airtel hit a record 364 million wireless subscribers, up 13 million year-over-year. Mobile ARPU (average revenue per user) soared to Rs 256, up 21 per cent since June, on the back of tariff hikes and higher data usage.
Consolidated revenue jumped 25.7 per cent year-on-year to Rs 52,145 crore in Q2 FY2026, with EBITDA up 35.9 per cent to nearly Rs 30,000 crore and annualised net debt-to-EBITDA improving to 1.63 times.
S&P Global Ratings expects this momentum to last and carry on to the current quarter, it stated.
Over the next 12–24 months, Airtel’s operational and financial strengths are forecast to drive further debt reductions, with dividend payouts set to increase. S&P Global Ratings projected it at up to ₹240 billion by fiscal 2027.
The ratings agency sees Airtel’s funds from operations (FFO)-to-debt to top 46 per cent by then, from just 28 per cent last year, with high earnings and better capital spending. This is despite Airtel absorbing major 5G investments and paying down spectrum-related liabilities.
The positive outlook on Airtel is the world noting the unprecedented shift in India’s telecom sector. It is forming into a consolidated market with just three main national players.
With Vodafone Idea trailing and Jio focused on a possible IPO by early 2026, Global Ratings does not see another profit-killing price war anytime soon. Good for corporates, bad for consumers. This means there could be future tariff hikes.
But it also means Bharti Airtel’s earnings growth would stay more resilient than in the past decade.
Debt is still a problem
S&P Global Ratings was not all good news. The ratings firm pointed out that rising debt at the parent company Bharti Telecom could weigh on Airtel’s creditworthiness down the line, and any debt-fueled acquisitions or overspending could threaten the “positive” outlook.
The Africa business, which contributes about 20 per cent of group earnings, would also factor in. But S&P Global Ratings projects steady revenue and subscriber growth in the region.
Airtel opened at Rs 2,122 apiece on the NSE, hitting its 52-week high of Rs 2,153.70 per share in the first half of Tuesday trading vs Monday’s close of Rs 2,112.20.
Business