Bharti Airtel shares fell nearly 4% in intraday trade on Tuesday. The stock touched a day’s low of ₹1,921 apiece. This level was last seen in early February. Moreover, the decline marked its steepest intraday fall in three months. Investors reacted negatively to the company’s latest strategic move. Airtel announced a major capital infusion into its NBFC arm.
₹20,000 Crore Infusion into Airtel Money
On Monday, Bharti Airtel revealed plans to capitalise Airtel Money Limited. The company will infuse ₹20,000 crore over the next few years.Bharti Airtel will contribute 70% of the equity. Meanwhile, the promoter group will provide the remaining 30%. This development follows the Reserve Bank of India granting an NBFC licence on February 13. Consequently, Airtel aims to build a new growth engine.
The company plans to leverage its large customer base. It seeks to diversify beyond traditional telecom operations. Airtel Money has already achieved significant adoption. It reported over ₹9,000 crore in disbursements. Management intends to expand digital financial services rapidly. The focus remains on simple, secure and innovative offerings. According to regulatory filings, the disbursement process will integrate with the LSP platform. However, Airtel will maintain clear operational segregation. The company believes combining technology and data at scale will enhance customer experience. Furthermore, it aims to set a benchmark in digital finance.
Strong Revenue, Weaker Profit
Earlier this month, Bharti Airtel reported its Q3 results for 2026. The company delivered strong revenue and operating performance. However, net profit declined significantly due to one-off factors. Airtel posted a 55% year-on-year drop in profit to ₹6,631 crore. Sequentially, profit fell 2.4% from ₹6,791.7 crore in the previous quarter.
In contrast, revenue rose 19.6% year-on-year to ₹53,982 crore. Sequential revenue also grew 3.5%. The profit decline largely reflected a high base effect. Last year, Airtel reported an exceptional gain of ₹7,546 crore. That gain followed the reclassification of Indus Towers. Additionally, the company increased provisions for gratuity and compensated absences.
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ARPU Growth Strengthens Position
Meanwhile, Airtel widened the ARPU gap with Reliance Jio. Its average revenue per user rose 1.2% sequentially to ₹259 per month. Higher data consumption and consumer upgrades supported this growth. Therefore, operational metrics remain healthy despite stock pressure.
The stock began 2026 on a weak note. It declined 6.50% in January after seven consecutive positive years. After reaching a record high of ₹2,174 in late November, momentum slowed. Earlier this month, it briefly dropped to ₹1,900 before recovering. So far in 2026, the stock has fallen 7.86%. Nevertheless, long-term returns remain strong.
Over the past three years, Airtel delivered 154% returns. Furthermore, it generated 243% returns over five years. The rally also lifted the company’s market capitalisation above ₹12 lakh crore.
Investor Sentiment Turns Cautious
Despite solid fundamentals, markets reacted cautiously to the NBFC expansion plan. Investors appear concerned about capital allocation and execution risks. However, Airtel views financial services as a strategic growth lever. The company aims to scale digital lending through technology integration.
Therefore, while short-term volatility persists, management remains focused on diversification and long-term expansion
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