Airtel Homes revenue rose 25% as cash deficit widened

Bharti Airtel’s Homes Services reported 25% year-on-year revenue growth to Rs 2,336 crore in the quarter ended September 2026, but operating free cash flow was negative Rs 1,041.3 crore as capital expenditure of Rs 2,181.4 crore exceeded EBITDA of Rs 1,140.1 crore. The deficit was wider than negative Rs 927.1 crore a year earlier.

How quickly did Airtel Homes revenue grow?

Airtel Homes grew quarterly revenue by 25% to Rs 2,336 crore in the quarter ended September 2026, from Rs 1,864.6 crore in the quarter ended September 2025. The increase of Rs 471.4 crore was accompanied by six-month revenue growth of 29%, with revenue reaching Rs 4,623.5 crore in the six months ended September 2026 versus Rs 3,582.5 crore a year earlier.

Airtel Homes was a 6% contributor to India and South Asia revenue in both the September 2026 quarter and the six months ended September 2026. Mobile Services accounted for 73% of quarterly revenue and Airtel Business accounted for 14%, while Homes Services’ 25% quarterly growth exceeded the 10% reported by Mobile Services and the 11% reported by Airtel Business.

The presentation reports revenue by segment but does not provide a Homes Services split by product, customer category or geography. Its reported quarterly revenue of Rs 2,336 crore was higher than Digital TV Services’ Rs 771.3 crore, but below Airtel Business revenue of Rs 5,877.9 crore in the same September 2026 quarter.

Did Airtel Homes EBITDA keep pace with revenue?

Airtel Homes increased earnings before interest, tax, depreciation and amortisation, or EBITDA, by 22% to Rs 1,140.1 crore in the September 2026 quarter, from Rs 933.5 crore a year earlier. That growth was lower than the 25% revenue increase, and EBITDA margin declined by 1.3 percentage points to 48.8% from 50.1%.

In the six months ended September 2026, EBITDA rose 26% to Rs 2,264 crore from Rs 1,792.4 crore in the prior-year period. Six-month EBITDA margin fell by 1.1 percentage points to 49.0%, compared with 50.0% in the six months ended September 2025, despite revenue increasing 29%.

Earnings before interest and tax, or EBIT, moved differently from EBITDA. Quarterly EBIT fell 48% to Rs 157 crore from Rs 301.2 crore, while six-month EBIT declined 31% to Rs 409.7 crore from Rs 599.6 crore. The presentation does not separately disclose Homes Services depreciation and amortisation, although cumulative investments rose 24% to Rs 29,222.9 crore as at September 30, 2026.

Why was Airtel Homes operating free cash flow negative?

Airtel Homes recorded negative operating free cash flow because its quarterly capital expenditure, or capex, of Rs 2,181.4 crore exceeded EBITDA of Rs 1,140.1 crore by Rs 1,041.3 crore in the quarter ended September 2026. The company defines operating free cash flow as EBITDA minus capex, making the reported negative figure a direct result of the two reported line items.

The prior-year comparison shows that both operating measures and investment rose, but capex remained above EBITDA. In the quarter ended September 2025, capex was Rs 1,860.6 crore and EBITDA was Rs 933.5 crore, producing negative operating free cash flow of Rs 927.1 crore; the deficit therefore increased by Rs 114.2 crore in the September 2026 quarter.

The six-month figures show the same pattern. EBITDA was Rs 2,264 crore and capex was Rs 4,081 crore in the six months ended September 2026, resulting in negative operating free cash flow of Rs 1,817 crore. In the comparable 2025 period, EBITDA of Rs 1,792.4 crore and capex of Rs 3,317.8 crore resulted in a negative Rs 1,525.4 crore figure.

How much of India and South Asia capex did Airtel Homes use?

Airtel Homes accounted for 22% of India and South Asia capex in the quarter ended September 2026, while contributing 6% of revenue and 4% of EBITDA in the segment contribution schedule. Its quarterly capex of Rs 2,181.4 crore was lower than Mobile Services’ Rs 3,599.9 crore and Passive Infrastructure Services’ Rs 2,470.1 crore, but higher than Airtel Business’ Rs 1,171 crore and Digital TV Services’ Rs 476.5 crore.

The six-month allocation was similar: Homes Services represented 21% of India and South Asia capex, or Rs 4,081 crore, against 6% of revenue and 4% of EBITDA. Mobile Services used 42% of capex, or Rs 8,176.4 crore, and represented 73% of revenue and 68% of EBITDA during the six months ended September 2026.

Homes Services’ cumulative investments stood at Rs 29,222.9 crore at September 30, 2026, compared with Rs 23,486.3 crore at September 30, 2025. The Rs 5,736.6 crore increase was 24%, while quarterly capex increased 17% and six-month capex increased 23% over their respective prior-year periods.

What changed between the September 2025 and September 2026 periods?

Airtel Homes delivered higher revenue and EBITDA in the September 2026 quarter, but its margin, EBIT and operating free cash flow all moved down year on year. Revenue increased by Rs 471.4 crore, EBITDA increased by Rs 206.6 crore, EBIT decreased by Rs 144.2 crore, and the operating free cash flow deficit widened by Rs 114.2 crore.

The half-year comparison followed the same direction. Revenue rose by Rs 1,041 crore and EBITDA increased by Rs 471.6 crore, while EBIT decreased by Rs 189.9 crore and negative operating free cash flow increased by Rs 291.6 crore. The six-month EBITDA margin declined to 49.0% from 50.0%, alongside capex growth of 23%.

The segment also differed from Digital TV Services in its revenue trajectory. Digital TV Services recorded 2% quarterly revenue growth to Rs 771.3 crore and negative operating free cash flow of Rs 142.4 crore in September 2026, while Homes Services recorded 25% revenue growth and negative operating free cash flow of Rs 1,041.3 crore.

Conclusion

Airtel Homes increased revenue to Rs 2,336 crore and EBITDA to Rs 1,140.1 crore in the September 2026 quarter, while its 48.8% EBITDA margin was 1.3 percentage points lower than a year earlier. Capex of Rs 2,181.4 crore exceeded EBITDA, resulting in negative operating free cash flow of Rs 1,041.3 crore, and EBIT fell 48% to Rs 157 crore.

What to watch next is whether the reported gap between EBITDA and capex narrows after cumulative investments reached Rs 29,222.9 crore at September 30, 2026. The presentation does not disclose a Homes Services customer target, capex target, profitability timetable or operating-free-cash-flow forecast, leaving future reported revenue, margin, capex and cash-flow figures as the available measures of progress.