Shares of Bharti Airtel will remain in focus after the telecom major announced plans to invest ₹20,000 crore over the next few years to capitalise its NBFC arm, Airtel Money, marking a significant push to scale up its lending ambitions.
The stock declined nearly 4 per cent in early trade, falling to a low of ₹1,921.80 from its previous close of ₹1,997.30. At 10.35 am, the shares were trading 3 per cent lower at ₹1,933.
Under the proposed capital infusion, , while the promoter group, through Bharti Enterprises Ltd, will fund the remaining 30 per cent over the next few years. The company aims to rapidly expand its credit engine and has already clocked over ₹9,000 crore in disbursements. Airtel Money received its NBFC licence from the Reserve Bank of India on February 13.
The move signals Airtel’s intent to deepen its presence in financial services by leveraging its technology backbone, data capabilities and customer base to build a scalable lending platform.
Brokerages maintained a constructive stance on the development. Citi reiterated its “buy” rating with a target price of ₹2,380, describing the NBFC expansion as a natural adjacency to diversify growth and build the next earnings engine, adding that strong free cash flow generation should limit balance sheet strain.
Morgan Stanley maintained an “overweight” rating with a target price of ₹2,450, noting that while near-term capex intensity may rise, the investment could create incremental revenue streams and long-term value in the NBFC business.