You do not get to spend more than double what you spent a year ago and call it business as usual. Airtel Africa just did that, posting record profitability in the same quarter it poured $657 million into network expansion across 14 African markets.
The telecom group’s half-year numbers look strong on the surface, with revenue up 28.2% and EBITDA margins at an all-time high.
But the cost structure underneath those margins is growing almost as fast as the revenue feeding them.
Airtel Africa’s EBITDA margin hits 50.4% as spending doubles
Airtel Africa reported revenue of $3.82 billion for the six months ended September 30, 2026, up from $2.98 billion a year earlier, the company’s half-year financial results showed.
In constant currency terms, stripping out favorable exchange rate movements, revenue grew by a more modest 20.8%.
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Underlying EBITDA reached $1.92 billion, growing 32.8%, and the margin expanded to 50.3% for the half-year. The second-quarter margin of 50.4% is an all-time high for the company, up 144 basis points from the prior period, the results stated.
Capital expenditure, however, more than doubled to $657 million during the period, exceeding the $452 million in profit after tax.
Operating profit rose 34.2% to $1.28 billion, but profit after tax climbed about 20% to $452 million, reflecting pressure from costs below the operating line.
Rising finance costs and vanishing FX gains weigh on Airtel Africa
Airtel Africa operates telecommunications and mobile money services across 14 countries in sub-Saharan Africa. Nigeria is its largest single market, generating $1.01 billion in revenue during the period, TechCabal reported.
The naira’s trajectory remains a wild card for future earnings, as the CBN’s recent $500 million intervention failed to halt the currency’s slide.
Net finance costs surged 57% to $477 million from $304 million, driven by higher interest on lease liabilities from the company’s network rollout.
A $37 million charge tied to a commercial dispute settlement added further pressure, Nairametrics reported.
Foreign exchange and derivative gains collapsed from $90 million to just $2 million, an $88 million swing that explains much of the gap between strong operating growth and the more subdued roughly 20% rise in profit after tax. The total tax charge also rose 29% to $362 million.
Airtel Africa’s data and mobile money units reshape the revenue mix
Data revenue grew 28% in constant currency and now accounts for roughly half of all mobile services revenue, up from 46.5% a year earlier.
The shift mirrors what is happening at rival MTN Nigeria, where data has overtaken voice as the dominant revenue source.
“The investment case for Airtel Africa is as compelling as ever,” CEO Sunil Taldar said, noting that smartphones on the network have surpassed 100 million, the results noted.
Airtel Money added customers at a 22.4% clip, reaching 60.9 million users, with annualized transaction value surpassing $275 billion.
Airtel Mobile Commerce listed on the London Stock Exchange on October 14, 2026, though the offering raised no fresh capital for the parent.
In Nigeria, SmartCash PSB grew its customer base 110% to 4.2 million and revenue 150% to $10 million, TechCabal reported.
Telecom operators are increasingly exploring adjacent digital strategies, with MTN turning SME Wi-Fi into a marketing engine as one example of the sector’s push beyond connectivity.
Airtel Africa’s capex gamble could define the next two years
The company guided to approximately $1.1 billion in capital expenditure for the full financial year ending March 2027, Khusoko reported, a sustained acceleration from $884 million in FY2026 and $670 million the year before.
Airtel Africa’s total customer base grew 11.6% to 193.9 million, with data customers rising 15% to 89.9 million and smartphone data usage jumping 31.7% to 13.3 gigabytes per user per month.
The board approved an interim dividend of 3.1 cents per share, up 9.2%, and leverage improved to 1.6 times.
Whether the spending translates into sustained revenue growth or compresses profitability in the quarters ahead will determine how investors value the company’s shift from legacy telecom operator to digital platform.
The numbers suggest Airtel Africa is betting that Africa’s data and fintech demand will grow fast enough to absorb the cost.
Airtel Africa H1 FY2027 at a glance
- Revenue: $3.82 billion, up 28.2% (Airtel Africa H1 FY2027 results)
- EBITDA margin: 50.3%, with Q2 at an all-time high of 50.4% (Airtel Africa H1 FY2027 results)
- Profit after tax: $452 million, up about 20% from $376 million (Airtel Africa H1 FY2027 results)
- Capital expenditure: $657 million, more than double the prior period (Airtel Africa H1 FY2027 results)
- Net finance costs: $477 million, up 57% (Nairametrics)
- Mobile money customers: 60.9 million, up 22.4% (Airtel Africa H1 FY2027 results)
