Bharti Airtel, one of India's leading telecom operators, may begin share buybacks by 2029, according to remarks from its founder and Chairman, Sunil Bharti Mittal. Mittal highlighted the company's unprecedented financial strength, projecting that Airtel would be debt-free by 2029. This strategic move would mark a new phase in rewarding investors, following years of consistent dividend payments.
In a recent interview, Mittal emphasized the company's robust financial position. "If you’re generating $14–15 billion EBITDA, your capacity to borrow is huge. So I don’t see us doing any more rights or fresh issues and all that. The company would be in a position to start buybacks," he stated.
Financial Strength and Analyst Projections
Mittal's optimism is supported by market analysts' projections. Bloomberg consensus estimates forecast Bharti Airtel to report a 42.83 percent growth in consolidated net profit, reaching Rs 38,130 crore in FY27. Net sales are also expected to rise by 20.96 percent year-on-year to Rs 82,369 crore.
Further long-term estimates from 31 analysts suggest Airtel's net profit could exceed Rs 50,000 crore by FY28, with revenues crossing Rs 3 lakh crore by FY29. Major brokerages, including Citi, Jefferies, Morgan Stanley, and Nomura, maintain 'Buy' or 'Overweight' ratings on Bharti Airtel shares, with a consensus 12-month target price implying a 12 percent upside from current levels.
Rewarding Investors: Dividends and Stock Performance
Bharti Airtel has consistently rewarded its shareholders. The company's dividend yield has steadily increased, rising from 0.4 percent in FY21 to 1.35 percent in FY26, according to corporate database AceEquity. S&P Global Ratings, which upgraded Bharti's long-term issuer rating to BBB+ in June, anticipates total cash dividends to climb to approximately Rs 23,000 crore in FY27 and Rs 35,000 crore in FY28.
The telecom giant has also delivered impressive stock performance, generating 209 percent returns over the past five years, significantly outperforming the benchmark Nifty's 39.80 percent return during the same period. Since the launch of industry disruptor Jio on September 5, 2016, Bharti Airtel shares have surged by 636 percent, positioning it among the top 10 Nifty gainers.
Navigating the Telecom Landscape
Mittal's comments on future capital allocation come at a time when the intense price war in the Indian telecom sector has eased, and expectations for further tariff hikes are growing. He reflected on the challenging period following Jio's entry, which offered free services for a year, forcing Airtel to navigate with "great difficulty."
"You saw the stock price went to Rs 220; things were quite shaky in 2017-18, but somehow we knew the playbook, we knew exactly how long this would last, and you just had to hold on," Mittal recalled.
S&P's June note also indicated that Airtel's incentive to reduce debt would likely diminish as its leverage falls below the Asia-Pacific telecom median. This scenario, S&P noted, could enable the company to pursue other capital allocation strategies, including acquisitions and enhanced shareholder returns, such as share buybacks.