Bharti Hexacom reported a strong Q3 FY26, with Net Income and EPS surging 82% YoY to Rs 4,737 million and Rs 9.47 respectively. Revenue grew 4.8% to Rs 2,360 crore, and EBITDA increased 7.4% to Rs 1,282 crore with improved margins. The company also achieved a significant 29% YoY reduction in Net Debt.
📉 The Financial Deep Dive
The Numbers:
Q3 FY26 Performance: Bharti Hexacom announced robust results for the quarter ended December 31, 2025. Total revenues reached Rs 23,598 million, marking a 4.8% year-on-year (YoY) increase from Rs 22,507 million in Q3 FY25. Sequentially, revenue grew 1.8%. EBITDA stood at Rs 12,820 million, up 7.4% YoY from Rs 11,938 million. The EBITDA margin saw a significant improvement of 128 basis points YoY to 54.3%. EBITDAaL (EBITDA adjusted for lease liabilities) was Rs 11,242 million (up 8% YoY), with a margin of 47.6% (up 136 bps YoY). EBIT grew 8.0% YoY to Rs 7,151 million, with an EBIT margin of 30.3% (up 88 bps YoY).
Net income before exceptional items increased by 19% YoY to Rs 4,318 million. Net income after exceptional items surged 82% YoY to Rs 4,737 million, driven by a Rs 419 million net exceptional gain (after tax), which included a tax credit from a favorable tribunal judgment and adjustments to employee benefit provisions. Earnings Per Share (EPS) saw a significant jump of 82% YoY to Rs 9.47.
Nine-Month Performance (ended Dec 31, 2025): Revenues grew 11% YoY to Rs 69,401 million. EBITDA increased 19% YoY to Rs 37,556 million, with EBITDA margin expanding by 3.8 percentage points to 54.1%. Profit before tax grew 54% YoY to Rs 16,690 million.
The Quality:
Margin Expansion: The company demonstrated strong operational efficiency with improved EBITDA margins YoY across both quarterly and nine-month periods.
Debt Reduction: Bharti Hexacom significantly strengthened its balance sheet by reducing Net Debt (including lease obligations) by 29% YoY to Rs 56,289 million as of December 31, 2025. Net debt excluding lease obligations was down 50% YoY to Rs 21,565 million. This resulted in a substantial improvement in the Net Debt to EBITDA (annualized) ratio, which stood at 1.10 times compared to 1.65 times YoY.
Cash Flow: Operating Cash Flow for the quarter was Rs 12,201 million. Capital expenditure for the quarter was Rs 3,403 million, leading to a robust Operating Free Cash Flow (EBITDA - Capex) of Rs 9,417 million.
Shareholder's Equity: Equity base increased to Rs 67,183 million from Rs 54,637 million YoY, reflecting retained earnings.
Operational Highlights:
The total customer base reached 29.04 million, a 3.7% YoY increase.
Mobile services ARPU (Average Revenue Per User) increased to Rs 253 from Rs 241 YoY.
Mobile data usage per customer per month rose 22.1% YoY to 32.0 GB.
The Homes, Office and Other Services segment showed strong growth of 50.8% YoY in revenue, adding 73,000 new customers.
🚩 Risks & Outlook
The Forward View:
Management has highlighted a strategic focus on portfolio premiumisation, quality customer acquisition, and sustained investments in network expansion and technology. Key growth drivers identified include increasing ARPU, growing mobile data consumption, and expansion in the lucrative Homes, Office and Other Services segment. While no explicit quantitative guidance was provided for future periods, the company's performance indicates a strong operational and financial footing. Potential risks include intense competition in the Indian telecom market, evolving regulatory landscapes, and execution challenges in network upgrades. Investors will closely monitor ARPU trends, subscriber growth, and the company's ability to leverage its network investments.
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