Bharti Hexacom Profit Soars 81% on Tax Credit, Revenue Grows Modestly

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AuthorAnanya Iyer|Published at:
Bharti Hexacom Profit Soars 81% on Tax Credit, Revenue Grows Modestly
Overview

Bharti Hexacom reported a robust 81.56% YoY profit increase to ₹4,737 million in Q3 FY26, significantly boosted by a ₹487 million exceptional tax credit from a favourable tribunal judgment. Revenue grew 4.87% YoY to ₹23,598 million. For the nine months, profit rose 25.50% to ₹12,865 million on 10.88% revenue growth, with finance costs also declining.

📉 The Financial Deep Dive

Bharti Hexacom Limited has announced its audited standalone financial results for the third quarter (Q3) and nine months ended December 31, 2025, revealing a substantial surge in profitability driven primarily by an exceptional tax credit.

The Numbers:

  • Q3 FY26: Revenue from operations reached ₹23,598 million, marking a year-on-year (YoY) increase of 4.87% from ₹22,507 million in Q3 FY25. The company's profit for the period saw a dramatic leap of 81.56% YoY, soaring to ₹4,737 million from ₹2,609 million in the prior year quarter. Profit Before Tax (PBT) also showed strong growth, up 49.99% YoY to ₹5,690 million from ₹3,793 million. Consequently, basic and diluted Earnings Per Share (EPS) rose to ₹9.47, a significant jump from ₹5.22 in Q3 FY25.

  • Nine Months FY26: For the nine-month period, revenue from operations grew by 10.88% YoY to ₹69,401 million from ₹62,589 million. Profit for the period increased by 25.50% YoY to ₹12,865 million, compared to ₹10,252 million in the previous year. PBT grew by 28.12% YoY to ₹16,599 million from ₹12,956 million, with EPS for the nine months standing at ₹25.73, up from ₹20.50.

The Quality:

The impressive profit growth in Q3 FY26 was significantly bolstered by an exceptional tax credit of ₹487 million, arising from a favourable Delhi Income Tax Tribunal judgment that allowed spectrum usage charges as revenue expenditure. This credit substantially reduced the current tax expense for the quarter. While revenue growth was moderate, the company also benefited from lower finance costs, which decreased by 18.43% YoY in Q3 FY26 to ₹1,470 million and by 30.38% YoY for the nine months to ₹4,520 million. Depreciation and amortisation expenses saw a slight increase of 6.64% YoY in Q3 FY26.

An exceptional charge of ₹91 million was noted in Q3 FY26 due to incremental provisions for gratuity and compensated absences related to new Labour Codes. The prior year's Q3 also recorded a similar ₹91 million exceptional item.

Balance Sheet Snapshot:

Total assets saw a marginal YoY increase to ₹192,031 million as of December 31, 2025. Notably, total liabilities decreased significantly to ₹124,848 million from ₹136,905 million YoY, primarily due to reductions in unallocated liabilities, which include borrowings.

Segmental Performance:

In Q3 FY26, Mobile Services contributed ₹22,718 million to segment revenue, while Homes, Office and Other Services generated ₹972 million. Profit before tax, finance costs, exceptional items, and tax for Mobile Services was ₹7,151 million, with Homes, Office and Other Services contributing ₹2 million.

🚩 Risks & Outlook:

The provided financial update lacks any forward-looking guidance or management commentary regarding outlook, growth drivers, or specific risks. This absence of guidance leaves investors with limited visibility into the company's strategic direction and future performance, particularly concerning the sustainability of profit growth without the impact of exceptional items.

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