New Delhi, Aug. 7 -- One of Bharti Airtel Ltd's key strengths is its strong free cash flow (FCF) generation potential. In the June quarter (Q1FY26), the company delivered a positive surprise on this front, even as its profit and loss performance was largely in line expectations.

For context, while Ebitda rose 3% sequentially to Rs.16,274 crore, operating FCF (Ebitda minus capex) surged 37% on quarter to Rs.13,316 crore, driven by a sharp 51% sequential decline in capex. Thanks to this robust cash generation, Bharti's net debt, including lease obligations, fell 6% quarter-on-quarter (QoQ) to Rs.1.91 trillion.

The capex-to-revenue ratio nearly halved to 11%, both sequentially and year-on-year (YoY). During the earnings call, the managemen...