Bharti Airtel, India's second-largest telecommunications service provider, will focus its efforts on developing data centers, cloud services, and financial services as part of its next growth phase, stated Chairman Sunil Mittal in the company's annual report for the fiscal year ending March 2026.
Investment in Digital Infrastructure
According to Mittal, who noted that ₹3.3 trillion has been invested in creating digital infrastructure over the last decade, these investments will enable the utilization of new growth drivers for the country, based on a robust and secure digital foundation. Mittal emphasized that the company adopted a balanced approach to creating new sources of growth that have yielded significant results, strengthening confidence in three areas where, in his opinion, Airtel has a clear advantage: financial services, data centers, and Airtel Cloud.
Financial Services and Regulatory Steps
The company received approval from the Reserve Bank of India in February to operate Airtel Money Limited as a Non-Banking Financial Company (NBFC), which Mittal called a 'milestone' for expanding financial inclusion across India. He also announced that in the same month, an investment of ₹20,000 crore was made in Airtel Money, with 70 percent of these funds provided by Airtel and the remainder by the parent company Bharti Enterprises.
Data Center and Cloud Development
In its data center division, Nxtra Data, additional investments are planned to increase capacity from the current 300 MW to 1 GW in the coming years. This year, Nxtra raised $1 billion from existing investors Carlyle and new investors Alpha Wave Global and Anchorage Capital, as well as from Airtel, which maintained its controlling stake. The growth of this segment is driven by India's accelerated digitalization, increased adoption of cloud technologies, and growing demands for data localization.
The third growth driver, Airtel Cloud, is showing encouraging early success. This sovereign carrier-grade cloud service addresses an emerging need in the Indian market by allowing customers to access world-class cloud services hosted and stored in India while ensuring cost-effectiveness. Mittal also noted that the company is actively working to ensure that the deployment of Artificial Intelligence (AI) is comprehensive, responsible, and aligned with India's technological priorities.
Government Support and Partnerships
He added that there are policy initiatives supporting the development of cloud technologies, AI, and digital infrastructure, which will stimulate investment and strengthen the ecosystem. Mittal specifically highlighted the long-term tax holiday period established by the Government of India for investments in cloud-managed data centers and AI, which is expected to spur a sustained inflow of capital into digital infrastructure while guaranteeing sovereign and secure data flows for Indian citizens.
Furthermore, collaboration with global technology leaders such as Adobe, Apple, Cisco, Ericsson, Eutelsat OneWeb, Google, IBM, Meta, Microsoft, Netflix, Nokia, Oracle, Qualcomm, Samsung, and SpaceX allows the company to create a unique customer experience, accelerate the launch of new services, and strengthen its competitive position.
Network Upgrade and Market Challenges
Executive Vice Chairman Gopal Vittal reported that Airtel is migrating its network to advanced 5G capabilities and Standalone (SA) architecture. He clarified that while this is currently operating at a fixed wireless access scale, the mobile network is also gradually transitioning to standalone mode. During the reporting period, Airtel's 5G customer base reached 188 million people. Vittal also noted that women constitute 20 percent of the company's workforce.
Vittal pointed to the need for 'tariff restoration' for the long-term health of the industry, while emphasizing opportunities for premiumization, such as shifting from feature phones to smartphones, increasing postpaid subscribers, data monetization, and expanding international roaming. He also mentioned that Airtel is replicating capabilities developed in India in African markets across its domestic and enterprise segments, and is expanding digital platforms to its subsidiary Indus Towers for the complete digitalization of tower operations.
Financial Obligations and Dividends
Airtel disclosed a contingent liability of ₹6,066 crore for a one-time spectrum auction, with total debt as of March 2026, including interest, rising to ₹12,137 crore. The company stated that it would challenge the Telecom Department's appeal in the Supreme Court, filed in January of this year, as part of the ongoing case regarding higher spectrum usage fees. The company's board of directors recommended a dividend of ₹24 per share for fiscal year 26, which is 50 percent higher than last year. Mittal explained that the record dividend aligns with the philosophy of progressive payout growth alongside continuous investment in the core business and new growth avenues to secure the company's future.