Bharti Hexacom Q3: Revenue Up 4.8%, Net Profit Surges 18.8% on Strong ARPU Growth

TELECOM
Whalesbook Logo
AuthorKavya Nair|Published at:
Bharti Hexacom Q3: Revenue Up 4.8%, Net Profit Surges 18.8% on Strong ARPU Growth
Overview

Bharti Hexacom posted robust Q3 FY26 results with revenue climbing 4.8% YoY to ₹2,360 crore and net income jumping 18.8% YoY to ₹432 crore (pre-exceptional items). EBITDA margin expanded 128 bps to 54.3%. Growth was fueled by a 3.6% rise in mobile services revenue, driven by higher ARPU (₹253) and data usage, alongside a stellar 50.8% YoY surge in the Homes, Office, and Other services segment. Net Debt to EBITDAaL improved significantly to 0.48x.

📉 The Financial Deep Dive

The Numbers: Bharti Hexacom Limited announced audited Q3 FY26 results, showcasing strong financial performance. Total revenues reached ₹2,360 crore, a 4.8% increase year-over-year (YoY) and 1.8% quarter-over-quarter (QoQ). EBITDA stood at ₹1,282 crore, up 7.4% YoY. The EBITDA margin improved by 128 basis points (bps) YoY to 54.3%. Net income before exceptional items surged 18.8% YoY to ₹432 crore. Net income after exceptional items was a significant ₹474 crore, a substantial leap from ₹261 crore in the prior year's Q3. EBIT also saw an 8.0% YoY increase to ₹715 crore, with an EBIT margin of 30.3% (up 88 bps YoY).

The Quality: Profitability metrics demonstrated healthy expansion. EBITDA margin grew by 128 bps YoY, and EBIT margin by 88 bps YoY, indicating operational efficiencies and pricing power. The company's financial leverage improved considerably: the Net Debt to EBITDAaL ratio fell from 1.03 times (Dec 31, 2024) to 0.48 times (Dec 31, 2025), signalling prudent debt management. Capital expenditure for the quarter was ₹340 crore.

The Grill: While the results are positive, the company did not provide specific forward-looking guidance or detailed management commentary on future outlook. This omission leaves investors to assess the future trajectory based on current operational trends and market conditions.

Risks & Outlook: The primary risk for investors is the absence of explicit management guidance, making future performance projections more uncertain. However, the company's strong operational execution, evidenced by rising ARPU, increased data consumption, and substantial growth in the Homes, Office, and Other services segment, provides a positive outlook. Sustaining these growth drivers and network expansion will be key. Investors should closely monitor subscriber additions, ARPU trends, and the continued expansion of the home broadband and enterprise services.

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.