Bharti Airtel Key Ratios

The improvement in PAT margin from 3.65% in FY2022 to 19.40% in FY2025 indicates a significant enhancement in profitability, which substantially boosts ROE.Asset turnover remained relatively stable, showing only a moderate increase, suggesting that efficiency in asset utilization has not been a major driver of ROE growth.Leverage decreased notably by FY2025, indicating reduced reliance on debt financing; this shift supports a higher ROE driven primarily by improved profitability rather than increased leverage.

Inventory days have decreased from 1.00 day to 0.76 days, indicating improved efficiency in managing stock levels, although a slight uptick in FY2025 shows potential issues worth monitoring.Receivable days improved initially, but a rise in FY2025 suggests that the company may be facing challenges in collecting receivables promptly.Payable days drastically increased in FY2025, potentially indicating an extended payment period, which paired with negative CCC values suggests a deteriorating cash management cycle.

ROE saw dramatic improvement to 38.40% in FY2025, driven largely by profitability enhancements as indicated by the increasing PAT margin, overshadowing other factors.ROCE also increased, suggesting that overall capital efficiency including debt was a positive contributor to returns, particularly from FY2023 onwards.ROA peaked in FY2025 at 8.20%, demonstrating a strong overall asset efficiency, indicating that the company is effectively generating returns from its total asset base, supplementing the equity returns.