Rationale

 The rating reaffirmation factors in Bharti Telecom Limited’s (BTL) status as the holding company of Bharti Airtel Limited (BAL), a leading player in the Indian telecommunications industry. The company enjoys healthy financial flexibility on account of its 40.47% stake (as on December 31, 2025) in BAL, which has a market value of more than Rs. 4,74,500 crore (as on February 18, 2026) and provides significant market value buffer. The company also has strong access to the capital markets. The rating also continues to derive comfort from BTL’s reputed and resourceful promoters — the Bharti Group and Singapore Telecommunications Limited (Singtel). BTL is dependent on dividends from its only investee company — BAL. In the current fiscal, BTL received ~Rs. 3,700 crore as dividends from BAL. However, while the market value buffer is comfortable, it remains vulnerable to BAL’s share price movement. ICRA also notes that BTL’s debt levels were at ~Rs. 39,975 crore as on February 2026, as debt was availed to fund its portion in the rights issue of BAL in October 2021, followed by the acquisition of stake from the Singtel Group and other promoter entities. Thus, the debt levels in BTL have increased materially, although they are likely to remain comfortable compared to the market value of the investments. ICRA expects the dividend payouts to increase in the future which will take care of the interest servicing at the BTL level, along with minor debt repayments.