Bharti Airtel, India’s second-largest telecom operator, beat quarterly profit estimates yesterday, helped by a continued boost in its revenue per user from last year’s price hikes and a growing subscriber base.

The company reported a consolidated net profit of Rs. 110.22 billion ($1.29 billion) for the quarter ending March 31, above analysts’ average expectation of Rs. 65.24 billion, as per data compiled by LSEG. Airtel benefited from a net tax gain of Rs. 28.92 billion during the quarter, a Reuters report stated.

Its average revenue per user (ARPU), a key telecom performance metric, rose 17.2 percent year-on-year to Rs. 245. The company has the highest ARPU among peers.

Telecom firms continue to benefit from last year’s tariff hikes, analysts have said. India’s three private mobile carriers —Reliance Industries-owned Jio, Airtel, and Vodafone Idea — raised tariffs in July 2024 for the first time in over two years, aiming to recoup billions invested in 5G technology.

Last month, Jio reported an ARPU of Rs. 206.2 for the quarter and a 24.5 percent rise in profit. Vodafone Idea has yet to report results.

India’s telecom sector has seen intense competition for market share since Jio’s entry in 2017, with it overtaking peers to command the largest user base.

Airtel’s user base rose 4.4 percent year-on-year to 424 million as of March 31, compared to Jio‘s 488.2 million. Its revenue from operations came in at Rs. 478.76 billion, below analysts’ estimate of Rs. 487.47 billion.

The March quarter marked the first time Airtel’s results fully reflected the revenue contribution from unit Indus Towers, which it began consolidating after gaining a controlling stake last year.