Bharti Airtel spends ₹1,229 cr on sales and marketing in Q1 FY26
These advertising and sales investments are seen as central to Bharti Airtel’s premiumization strategy, aimed at driving ARPU growth and building long-term customer stickiness in both urban and rural markets.
ADVERTISEMENT
Bharti Airtel Limited's latest financial results for Q1 FY26 reveal a sustained focus on customer-centric growth, with sales and marketing expenses emerging as a key driver in the company’s strong operational performance.
According to the audited standalone financials, Airtel incurred ₹1,229 crore in sales and marketing expenses for the quarter ended June 30, 2025. While this marks a modest reduction from ₹1,351 crore in Q4 FY25, it continues to reflect a calculated and strategic approach toward brand positioning, content bundling, and customer acquisition.
The company reported ₹37,585 crore in India revenue, representing a 29% year-on-year growth, driven significantly by the mobile and broadband segments. These segments benefitted from targeted marketing campaigns and promotional efforts aimed at enhancing user engagement and increasing Average Revenue Per User (ARPU), which rose to ₹250 in Q1 FY26 from ₹211 in Q1 FY25.
Gopal Vittal, Vice- Chairman and MD, said, "Our IPTV expansion is ramping up well with strong acceptance from customers as it delivers superior experience and convenience. Airtel Business revenue decline is reflecting full impact of portfolio restructuring undertaken last year. The underlying growth trajectory remains steady at a sequential growth of 2.0 % with continued improvement in funnel and orderbook. Our digital network across India and Africa now serves over 600 million customers."
Vittal said, "This is a testament to our passion for connecting customers through sustained investments and superior customer experience. Our balance sheet continues to demonstrate strength, supported by solid cash flow generation and disciplined capital allocation."
Notably, Bharti Airtel’s Homes business added 939,000 new customers in the quarter — a record high — reflecting the effectiveness of Airtel’s outreach in promoting its fiber and fixed wireless access (FWA) offerings across urban and semi-urban India.
During the quarter, Airtel introduced new entertainment prepaid packs offering access to over 25 OTT platforms such as Netflix, Zee5, and Sony Liv. This campaign was backed by cross-platform marketing and emphasized Airtel's evolving position not just as a telecom provider but as a digital lifestyle enabler.
These advertising and sales investments are seen as central to Bharti Airtel’s premiumization strategy, aimed at driving ARPU growth and building long-term customer stickiness in both urban and rural markets.
While the Airtel Business segment reported a 7.7% YoY decline in revenue, this was a result of Airtel's decision to exit low-margin legacy operations. Marketing focus in this vertical shifted toward high-value offerings, such as the recently launched “Business Name Display (BND),” which allows enterprises to display verified caller IDs—an initiative promoted through targeted B2B marketing.
Airtel’s Digital TV segment, though experiencing a slight revenue dip, saw renewed traction with IPTV services. A total of 650,000 new IPTV users were added during the quarter, suggesting the success of Airtel’s performance-driven marketing efforts in this space.
Bharti Airtel reported quarterly revenues of Rs 49,463 crore growing 28.5% YoY & 3.3% QoQ, attributed to strong performance in India and rebound in Africa on reported currency. Consolidated Net income (before exceptional items) at Rs 5,948 crore - more than doubled on YoY basis. India business posted quarterly revenues of Rs 37,585 crore – up 29.0% YoY, up 2.3% QoQ, backed by improved realizations in mobile segment & strong momentum in Homes business.
