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    Bharti Hexacom Limited

    BHARTIHEXA
    Telecommunication·6 Feb 2026
    Management Summary

    Bharti Hexacom delivered a consistent Q3 FY26, reporting ₹2,360 crores in revenue and a 47.6% EBITDAaL margin. The homes business saw robust growth with record net additions, driven by FWA expansion. While mobile revenue growth lagged Airtel due to specific operational issues, the company maintains a strong balance sheet and is focused on strategic capital allocation for growth areas like FWA and Digital TV.

    Highlights

    5

    • Revenue of ₹2,360 crores, growing 1.8% sequentially, demonstrating consistent performance.

    • EBITDAaL of ₹1,120 crores with a strong margin of 47.6%.

    • Robust customer additions with 370,000 net customers, including 283,000 smartphone users, and ARPU at ₹253.

    • Homes business showed significant acceleration with record high net adds of 73,000, leading to over 10% sequential revenue growth.

    • Strong operating free cash generation of ₹784 crores and a robust balance sheet with net debt excluding leases at ₹2,160 crores and net debt to EBITDAaL below 1.

    Concerns

    2

    • Mobile revenue growth underperformed compared to Bharti Airtel, attributed to customer drop issues and 'interference' from national inroamers.

    • The challenge of fiberization for FWA in difficult terrains, though 5G handset penetration is increasing.

    What Changed2

    vs Q4 FY26

    Guidance items3 → 2 (-1)Risks discussed4 → 1 (-3)

    Key financials

    Single quarter

    09 metrics
    1. 01Revenue₹2,360 Cr+1.8%QoQ
    2. 02EBITDAaL₹1,120 Cr
    3. 03EBITDAaL Margin47.6%
    4. 04Mobile Customer Base28.4 Mn
    5. 05Net Customer Additions3,70,000 units

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹336 crores

    Debt

    Net ₹2,160 crores · 1.0x EBITDA

    Guidance & targets

    2
    CategoryTargetPriority
    Volume
    FWA Household Penetration
    30-35%
    		Medium
    Volume
    Homes Business Sequential Growth
    10%
    		Medium

    What to watch in Q4 FY26

    3

    Resolution of customer drop issues affecting mobile revenue growth

    Next quarter
    CurrentNot yet completely resolved
    TargetResolution of customer drop issues and improved mobile revenue growth

    Why it matters

    Directly impacts Hexacom's mobile revenue growth and overall performance, which has been underperforming.

    You would recollect that in the last quarter, we had called out that there were some issues because of which we had some customer drop; whilst we are working very closely with the other partner to see that it gets resolved, it has not yet got resolved completely, and hence there is a bit of drag which we still have on that.

    Risks & concerns

    1
    RiskSeverity

    Mobile revenue growth underperformance due to customer drop issues and 'interference'

    Hexacom's mobile revenue growth lagged Airtel's, partly due to customer drop issues and external factors like national inroamers and 'interference' which management is actively addressing. — Both acknowledged

    medium

    Q&A highlights

    4

    “You would recollect that in the last quarter, we had called out that there were some issues because of which we had some customer drop; whilst we are working very closely with the other partner to see that it gets resolved, it has not yet got resolved completely, and hence there is a bit of drag which we still have on that. Now, your interpretation is absolutely right that during winters, certainly Rajasthan, I do not know so much about Northeast but certainly, Rajasthan is a destination where there are a lot of national inroamers and thereby it generates revenue. I have not checked with other, let us say, somebody like travel portal or anybody, but let me put it this way, Sanjesh. We are focused on how the people who are in the state in these two circles, how do we improve their ARPU and their penetration and over there, we have a challenge; as I mentioned, last quarter the challenge started, the challenge is not yet solved, but there is absolute alignment between the two partners to solve it. Inroamers is something which is beyond our control; it is based on whether people want to go to deserts or to mountains, but I can tell you underlying growth, give or take 20-30 basis points here or there, BHL is trending with the national average and you will see results coming in; one quarter aberration, and primarily because of this interference is what is coloring the picture.”

    Addresses a key concern about Hexacom's growth lagging Airtel, attributing it to specific operational issues and external factors like 'inroamers' and 'interference'.

    asked by Sanjesh Jain

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Performance Overview

    Bharti Hexacom reported a consistent Q3 FY26 with revenue reaching ₹2,360 crores, marking a sequential growth of 1.8%. The company achieved an EBITDAaL of ₹1,120 crores, translating to a healthy margin of 47.6%. Net customer additions stood at 370,000, with smartphone customer additions contributing 283,000, and the Average Revenue Per User (ARPU) was ₹253.

    02

    Homes Business Acceleration

    The homes business demonstrated robust growth acceleration during the quarter, recording a high of 73,000 net additions. This performance drove sequential revenue growth exceeding 10%. The expansion of FWA (Fixed Wireless Access) into new pin codes and the deepening of the FTTH (Fiber-to-the-Home) footprint are key drivers for this segment's growth, with management expressing ambition to sustain this momentum.

    03

    Capital Allocation and Balance Sheet Strength

    Bharti Hexacom maintains a strong financial position, with net debt excluding leases at ₹2,160 crores and a net debt to EBITDAaL ratio below 1. The company generated a robust operating free cash flow of ₹784 crores. Capex for the quarter was ₹336 crores, with a notable increase in homes capex attributed to aggressive FWA expansion from a previously low base, indicating strategic investment in growth areas.

    04

    Mobile Revenue Growth Challenges

    Despite overall positive performance, Hexacom's mobile revenue growth experienced underperformance compared to Bharti Airtel. Management attributed this to unresolved customer drop issues from the previous quarter and external factors such as national inroamers and 'interference.' The company is actively working with partners to resolve these challenges and expects underlying growth to align with the national average.

    05

    FWA and Home Wi-Fi Strategy

    FWA is a strategic focus for expanding the addressable market for home Wi-Fi. While fiber is considered the 'gold standard' for its consistency, FWA is positioned as the next best option. The company is also open to deploying UBR (Unlicensed Band Radio) in specific scenarios where demand exists, 5G handset penetration is low, and affordability is a concern, prioritizing customer needs and experience over rigid technology preferences. Management aspires to achieve 30-35% household penetration for FWA in its circles.

    06

    Digital TV and New Business Initiatives

    Bharti Hexacom has launched IPTV services in Rajasthan and Northeast, aiming to amplify and align with its convergence strategy. The company anticipates strong growth from Digital TV due to its robust interface and strong affinity for a converged home strategy. Additionally, Hexacom continues to manage small and medium business operations, though large enterprise business is primarily handled by Airtel.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.