Bharti Hexacom Reports Strong FY26 Performance Driven by ARPU Growth and Segment Expansion

Bharti Hexacom's full-year revenue reached ₹9,354 crore, marking a 9.4% year-on-year increase, while net income surged 43.8% to ₹1,710 crore. Revenue growth was fueled by ARPU gains and increased data uptake, with Homes & Office services showing strong expansion.

What Happened

Bharti Hexacom Ltd today announced its audited financial results for the fourth quarter and the full fiscal year ended March 31, 2026.

The company reported a 5.4% year-on-year (YoY) growth in total revenues for Q4 FY26, reaching ₹2,414 crore. Net income before exceptional items for the quarter rose by a significant 22.5% YoY to ₹466 crore.

For the full fiscal year, revenues climbed 9.4% YoY to ₹9,354 crore. The full-year net income before exceptional items saw a substantial increase of 43.8% YoY, totaling ₹1,710 crore.

These positive results were driven by growing mobile Average Revenue Per User (ARPU), an expanding customer base, and increased mobile data consumption.

Why It Matters

The company's performance demonstrates its ability to monetize services and expand its market presence in its operating circles.

Higher ARPU and data usage signal strong customer demand and effective upselling strategies. Growth in its Homes, Office and Other services segment signals successful diversification and adoption of offerings like Fixed Wireless Access (FWA) and IPTV.

Backstory

Bharti Hexacom Ltd, a subsidiary of Bharti Airtel Limited, operates primarily in Rajasthan and the North East India service areas. The company has strategically focused on expanding its 4G network and enhancing customer experience to drive ARPU growth.

Prior to its IPO in March 2024, the company emphasized network investments and subscriber acquisition. Continuous deployment of new towers aims to boost network coverage and capacity, supporting higher data speeds and service availability.

Bharti Hexacom is also pursuing new revenue streams, including Fixed Wireless Access (FWA) and IPTV, to diversify its service portfolio beyond traditional mobile and broadband offerings.

Key Developments

The Board of Directors recommended a final dividend of ₹18 per fully paid-up equity share, reflecting confidence in future profitability.

The company deployed 245 new towers in the past year, enhancing network infrastructure and customer service quality.

The Homes, Office and Other services segment demonstrated robust growth of 65.3% YoY, driven by new customer additions and increased adoption of services like FWA and IPTV.

Smartphone data customers grew by 1.2 million YoY, now constituting 79% of the total mobile customer base, and average monthly mobile data consumption increased by 30.9% YoY to 34.2 GB per customer.

Risks to Watch

No specific risks or cautionary statements beyond standard disclosures were explicitly mentioned in the provided filing text concerning the company's operational or financial performance.

Peer Comparison

Bharti Hexacom's ARPU of ₹252 for Q4 FY26 is a key indicator of its market positioning. While its parent, Bharti Airtel, consistently leads the industry with the highest ARPU, Bharti Hexacom's growth reflects a similar focus on increasing ARPU.

Competitors like Vodafone Idea are facing significant financial challenges, making ARPU enhancement and subscriber retention critical, in contrast to Bharti Hexacom's positive trajectory.

Key Metrics

• Bharti Hexacom's Mobile ARPU stood at ₹252 for Q4 FY26, an increase from ₹242 in Q4 FY25.
• The overall customer base grew by 3.6% YoY to 29.62 million as of Q4 FY26.
• Mobile data usage per customer increased by 30.9% YoY, reaching an average of 34.2 GB per month in Q4 FY26.
• The Homes, Office and Other services segment revenue grew by 65.3% YoY for FY26.

What to Track Next

Investors will track the finalization and payout of the recommended dividend of ₹18 per share.

Continued subscriber growth and ARPU trajectory in its core service areas of Rajasthan and North East India will be closely monitored.

The performance and adoption rates of newer services such as Fixed Wireless Access (FWA) and IPTV will be key indicators of future revenue diversification.

Any competitive responses from rivals in its operational regions could influence market share dynamics.

Progress on ongoing network expansion and infrastructure deployment, including the integration of new towers, will be important for maintaining service quality.