Bharti Airtel has received bullish commentary from brokerage firm Jefferies, which forecasts multiple tariff hikes in the coming years driven by market conditions and competition.

What Happened: The firm has reiterated its “buy” recommendation on Bharti Airtel, raising its target price from ₹1,760 to ₹1,970 per share, which reflects a potential 20% upside from its last closing price.

Jefferies has also increased its revenue and EBITDA estimates for Airtel's India operations by 5%-9% for FY26 and FY27, citing the company's strong growth prospects. The brokerage firm expects Airtel’s to grow at a robust 19% every year in EBITDA over the FY24-27 period.

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According to Jefferies, both Reliance Jio and Vodafone Idea are also likely to implement several tariff hikes in the near future. Jio’s focus on growth and Vodafone Idea’s struggles with market share loss may push both companies towards higher tariffs, it said.

For Airtel, Jefferies projects a 10% tariff hike in mid-FY26, followed by another 10% hike in the second quarter of FY27. With lower capital expenditures expected in the coming years, Airtel is poised to deliver a 23% yearly growth in free cash flow to equity (FCFE), which is likely to drive further stock performance.

Earlier this month, Goldman Sachs also raised its target price for Bharti Airtel, moving it from ₹900 to ₹1,700 per share, signalling a 10% upside from the current market price. Goldman also maintained its “buy” rating, highlighting Bharti’s strong growth trajectory and improved free cash flow profile, justifying the stock’s premium valuation.

Price Action: Airtel’s share price was down 0.72% at ₹1,634.85 in morning trade on Friday. The stock has gained over 61% so far this year.

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