S&P global upgrades Bharti Airtel credit rating to 'BBB' with positive outlook

S&P Global Ratings has raised its long-term issuer credit ratings on Bharti Airtel to 'BBB' from 'BBB-', with a positive outlook. The upgrade, announced on November 17, 2025, reflects Bharti Airtel's robust earnings growth and cash flow, expected to drive continued deleveraging over the next 12-24 months. The positive outlook indicates potential for a higher long-term issuer credit rating in the coming 24 months, unconstrained by India's sovereign rating.

The company's FFO-to-debt ratio is projected to improve to 37%-40% in fiscal 2026 and exceed 45% in fiscal 2027, up from 27.5% in fiscal 2025. This improvement is driven by an anticipated 23%-25% increase in consolidated adjusted EBITDA to about INR1.2 trillion in fiscal 2026, followed by 7%-8% annual growth over the subsequent two years. Annual revenue growth is forecast at 19% for fiscal 2026 and 7.5% for fiscal 2027, with EBITDA margins expected to reach 58% by fiscal 2026.

Bharti Airtel's strong performance is attributed to robust Indian operations, with anticipated 2%-4% annual subscriber additions and 6%-8% ARPU growth, fueled by tariff hikes in July 2024. The company's market share in the domestic telco industry remains solid, positioning it as a close second among three key players.