August 7, 2026/CSL Report
Airtel Africa delivered a strong performance in Q1 2027, supported by robust growth across its key revenue streams. Data Revenue increased by 36.5% year-on-year (y/y) to US$750 million, while Mobile Money Revenue grew by 38.9% y/y to US$404 million. Voice Revenue also recorded healthy growth, rising by 20.1% y/y to US$640 million. The strong topline performance, coupled with improved operating leverage, drove EBITDA up 36.7% y/y to US$928 million, with the EBITDA margin expanding by 210 basis points (bps) to 50.1%. Despite a 55.5% y/y increase in Net Finance Costs, Profit Before Tax (PBT) rose 31.9% y/y to US$360 million, while Net Profit increased 26.9% y/y to US$198 million in Q1 2027.
We forecast continued strong momentum through FY 2027, with:
• Data Revenue expected to grow by 31.2% y/y to US$3.3 billion
• Voice Revenue projected to rise by 10.0% y/y to US$2.6 billion
• Mobile Money Revenue forecast to increase by 35.5% y/y to US$1.8 billion
These growths are expected to lift total Revenue by 28.7% y/y to US$8.3 billion, compared to US$6.4 billion in FY 2026. In addition, improved operating efficiency, sustained cost optimisation initiatives, and a more stable foreign exchange (FX) environment are expected to support profitability, with Pre-Tax Profit projected to increase to US$1.7 billion in FY 2027, up from US$1.4 billion in FY 2026.
We maintain a target price of ₦7,125.54/s, with a BUY recommendation on the stock. Based on the closing price of ₦5,801.40/s as of 06 August 2026, our target price implies a potential upside of 22.8%. We derive our valuation using a blended approach, assigning a 60% weight to the Discounted Cash Flow (DCF) methodology and 40% to Relative Valuation.
Click here to download full report: Airtel Africa Q1 2027 Company Update