Airtel dividend payout may be up 114% in FY25: HSBC Securities

Mumbai: HSBC Securities said Bharti Airtel's dividend payout is expected to rise by 114% in FY25 to ₹17 per share from last year, driven by improvement in free cash flow and funding requirements at the promoter entity. The brokerage said the dividend per share is estimated to quadruple to ₹34 in three years. HSBC has maintained a 'buy' rating on the telecom operator and set its price target at ₹1,940, implying an upside of 21.3% over Wednesday's close of ₹1,599.

Brokerage said the company's growth will be supported by its rising mobile APRU, expanding home broadband subscriptions, and free cash flow.

HSBC said the company is expected to disburse a higher dividend to support higher cash flow needs of the promoter entity Bharti Telecom, as its debt and interest obligations have gone up after it made fresh investments in the Indian company in November 2024.