✓ BSE Debt / SEBI OBPP Standards
Wint Wealth & GoldenPi Collation
BHARTIARTL
INE397D08234 BSE Listed ₹10,000 SEBI Framework
Bharti Airtel Limited 8.25% Secured NCD 2028
Data sourced directly from official BSE Debt disclosures, credit rating rationales, and SEBI Online Bond Provider filings.
Yield to Maturity (YTM)
7.98%
Coupon / Payout
8.25% Annual
Credit Rating
CRISIL AA+
Macaulay Duration
1.87 yrs
Maturity Date
2028-09-25
💡
What Am I Looking At?
You are viewing an institutional research audit of **Bharti Airtel Limited 8.25% Secured NCD 2028**. This is a **Senior Secured** fixed-income security with an annualized yield to maturity (YTM) of **7.98%**. It pays a contractually guaranteed coupon of **8.25% Annual**, maturing on **2028-09-25**.
Bank FD Comparison: Compared to traditional 3-year State Bank of India (SBI) Fixed Deposits paying ~7.10%, this instrument offers an annualized return premium of **+0.88% (88 bps)**. In return for this higher yield, you assume corporate credit risk rather than sovereign deposit insurance.
🔒 Contractual Cash Flows: Fixed contractual cash flows (unlike equities where dividend payouts and stock prices fluctuate).
⚠️ Core Risks: Issuer credit solvency, liquidity/lock-in until maturity, and interest rate cycle shifts.
Issuer Operational & Solvency Profile
Telecommunications & Digital Services • Parent Group: Bharti Enterprises (Sunil Bharti Mittal)
Scale: Institutional Scale (₹10,000+ Cr)
Leading global telecommunications company operating across India and 14 African countries with market-leading ARPU.
Gross NPA
1.8%
Net NPA
0.6%
Capital Adequacy (CRAR)
19.5%
Return on Assets (RoA)
2.4%
Collateral Charge
First charge on telecom optical fibre assets and mobile switching equipment
Credit & Solvency Diagnostic Matrix (01–05)
01: Credit Quality & Rating Drift
Score: 88.0 / 100
📘 What This Tests: Credit ratings in India are issued by SEBI-registered Credit Rating Agencies (CRISIL, ICRA, CARE, India Ratings). AAA represents highest safety with virtually zero historical default probability (<0.05% over 3 years). AA and AA+ represent high safety, while A to BBB represent adequate safety with moderate vulnerability to economic stress.
Rated CRISIL AA+ with a STABLE trajectory. The instrument trades at an annualized YTM of 7.98%, offering a credit spread of 88 bps over the sovereign 10-Year Government of India (G-Sec) bond benchmark (7.10%). This spread compensates investors for issuer-specific credit and liquidity risk.
Rating Agency Rationale: Steadily expanding ARPU (> ₹200), high ROCE in Indian wireless business, and strong FCF generation.
Sensitivities: Up: Sustained loan book expansion while maintaining Net NPA below 1.0% and Tier-1 CRAR above 18%. | Down: Material weakening in asset quality, spike in credit costs, or dilution in parental support.
Agency Rating: CRISIL AA+
Rating Trajectory: STABLE
G-Sec Spread: 88.0 bps over 10Y Benchmark (7.1%)
💡 Key Takeaway: Issuer default risk is evaluated as very low (AA+) by registered rating agencies. The instrument offers a 88 bps credit spread above risk-free Government of India bonds for credit and liquidity risk.
02: Capital Hierarchy & Seniority Cover
Score: 100.0 / 100
📘 What This Tests: Capital hierarchy determines the order in which investors get paid back if a company goes bankrupt under the Insolvency and Bankruptcy Code (IBC Section 53). Senior Secured creditors sit at the very top of the liquidation waterfall right after court liquidation expenses and worker dues. Asset Cover Ratio (ACR) measures how much collateral is pledged; an ACR of 1.25x means the issuer has pledged ₹125 of tangible assets for every ₹100 of debt issued.
The instrument ranks as Senior Secured (First Pari-Passu Charge on Tangible Assets). Registered Asset Cover Ratio stands at 1.40x. A registered first charge provides legal right to seize hypothecated assets in default.
Collateral Pool: First pari-passu charge on standard loan receivables
Debenture Trustee: Catalyst Trusteeship Ltd / IDBI Trusteeship (Covenant Monitor)
Hierarchy Rank: Senior Secured (First Pari-Passu Charge on Tangible Assets)
Asset Cover Ratio: 1.4x
Covenant Status: Robust Coverage: ACR 1.40x provides substantial asset cushion.
💡 Key Takeaway: In a liquidation or default scenario, claims are backed by 1.40x tangible asset cover. Senior secured ranking provides primary statutory recovery priority under IBC.
🔒 Deep Dive
Credit Contagion Radar, Cash Flow Solvency and Recovery Reality
The free report covers rating, seniority, duration and yield. The Deep Dive adds the parts that show how this issuer behaves under stress.
- Credit Contagion Radar: how parent-equity distress and group leverage could spill over
- Pillar 03: interest cover, DSCR and leverage against covenant thresholds
- Pillar 05: realistic recovery, FLDG buffers and bankruptcy remoteness
- Ask the Forensic Desk about all three
One-time, permanent for this security
04: Duration & Interest Rate Sensitivity
Score: 85.0 / 100
📘 What This Tests: Duration measures a bond's sensitivity to interest rate changes by the Reserve Bank of India (RBI). Macaulay Duration is the weighted average time (in years) required to recoup cash flows. Modified Duration tells you the percentage price change for a 100 bps (1%) change in interest rates: a Modified Duration of 2.0 means the bond price will drop ~2% if interest rates rise by 1%.
Macaulay duration is 1.87 years, and Modified Duration is 1.74 years against a total maturity of 1.95 years. The duration posture is SHORT_TO_MEDIUM_DURATION. Optimal balance of yield vs. moderate interest rate sensitivity.
Macaulay Duration: 1.87 yrs
Modified Duration: 1.74 yrs
Duration Posture: SHORT_TO_MEDIUM_DURATION
💡 Key Takeaway: With an effective duration of 1.74 years, price sensitivity to RBI repo rate cycles remains limited. Investors holding to maturity realize the contracted face value and coupon cash flows.
Executive Investment Thesis
🟢 The Good (Strengths & Yield)
- Highest ARPU in Indian telecom sector
- Robust operating FCF generation
- AA+ rating with upside upgrade potential
🟡 The Bad (Risks & Covenants)
- High AGR statutory liabilities and spectrum payment obligations
🔴 The Ugly (Default Stress Test)
- Aggressive tariff disruption by competitors suppressing mobile ARPU
Net Real Post-Tax Return & Purchasing Power
Under Indian tax laws (Finance Act 2023), interest income and redemption gains on debt securities and debentures are added to total taxable income and taxed at your marginal slab rate. (Assumed CPI Inflation: 5.5%)
| Marginal Tax Slab | Nominal YTM | Effective Tax Rate | Net Post-Tax Yield | Real Return vs. Inflation |
|---|---|---|---|---|
| 10% Tax Slab | 7.98% | 10.4% | 7.15% | 1.65% ✓ Beats Inflation |
| 20% Tax Slab | 7.98% | 20.8% | 6.32% | 0.82% ✓ Beats Inflation |
| 30% Tax Slab | 7.98% | 31.2% | 5.49% | -0.01% ✗ Below Inflation |
| HNI High Surcharge (39%) | 7.98% | 39.0% | 4.87% | -0.63% ✗ Below Inflation |
Retail Investor Suitability Verdict
Verdict
SUITABLE FOR CONSERVATIVE CAPITAL PRESERVATION
Ideal Persona
Investors looking for predictable income beating Bank FDs, willing to hold until maturity.
Max Portfolio Allocation
Up to 10% to 15% of your total fixed-income debt portfolio.
RBI Repo Rate Shock Sensitivity Model
| Rate Scenario | Yield Shift | Estimated % Price Change | Estimated Clean Price |
|---|---|---|---|
| Rate Cut -1.00% | -100 bps | 1.76% | ₹10,267.92 |
| Rate Cut -0.50% | -50 bps | 0.88% | ₹10,178.37 |
| Rate Cut -0.25% | -25 bps | 0.44% | ₹10,134.04 |
| Current Yield Curve (Par) | 0 bps | 0.0% | ₹10,090.00 |
| Rate Hike ++0.25% | 25 bps | -0.43% | ₹10,046.26 |
| Rate Hike ++0.50% | 50 bps | -0.86% | ₹10,002.81 |
| Rate Hike ++1.00% | 100 bps | -1.72% | ₹9,916.79 |
| Rate Hike ++2.00% | 200 bps | -3.39% | ₹9,748.29 |
Mandatory Regulatory Disclosure: Fixed-income analysis, credit ratings, duration metrics, and rate shock sensitivity models are computational risk evaluations grounded in public exchange filings and Credit Rating Agency press releases. Calculations adhere to standard financial market methodologies and do not constitute an explicit or implied guarantee of capital safety. Past ratings and yields are not indicative of future solvency.
Forensic Intelligence Desk
SEBI RA Sec. 2(u):
Descriptive diagnostics & Pre-Mortem stress-testing only. Non-advisory software utility.
Forensic Desk
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