Singtel sells 0.8% Bharti Airtel stake in Rs 10,300 crore block deal: report

Singapore Telecommunications Ltd (Singtel) will reportedly offload about 0.8% stake in Bharti Airtel through a block deal worth Rs 10,300 crore. The deal has a minimum price of Rs 2,030 per share, which reflects a discount of 3.1% to Bharti Airtel’s last closing price.The stake sale is likely part of Singtel’s ongoing efforts to restructure and optimize its holdings in regional telecom companies. The Singapore-based telecom group has gradually reduced its position to free up capital and focus on core activities. In May this year, the company sold a Singapore dollar 2 billion stake in Airtel.

In 2022 and 2024, Singtel raised a total of 3.5 billion Singapore dollars from the gradual sale of Airtel shares.

The block deal follows the robust second quarter performance of Bharti Airtel, which reported a 6% quarter-on-quarter increase in consolidated EBITDA, driven by better-than-expected growth in its wireless businesses in India and Airtel Africa.

The company’s average revenue per user (ARPU) – a key measure of profitability – rose above expectations, while consolidated free cash flow remained healthy at Rs 14,600 crore. Bharti also reiterated that India’s capex for FY26 (excluding Indus Towers) will decline further from FY25 levels, improving cash flow generation.

Analysts say Bharti’s premiumization strategy and a likely tariff hike in December 2025 could significantly boost revenues and free cash flow over the next two years. According to Motilal Oswal estimates, the company is expected to generate Rs 1 lakh crore in free cash flow between FY26 and FY27.

Analyst view: revaluation potential remains

Motilal Oswal in its latest note maintained a buy rating on Bharti Airtel with a target price of Rs 2,365, citing continued strength in both the domestic and African markets. The brokerage expects Bharti’s revenue and EBITDA to grow at a CAGR of 15% and 18% respectively in FY25-28, helped by tariff increases, growth in broadband services and strong performance in its African operations.

The company also noted that Bharti Airtel’s risk-reward ratio remains attractive despite the stock’s 33% rally this year, outperforming the Nifty 50’s 8% gain. Possible triggers include tariff revision, Jio Platforms’ upcoming IPO and a possible waiver of adjusted gross revenue (AGR), all of which could strengthen the company’s balance sheet and earnings prospects.