Bharti Hexacom Limited reported a net profit of ₹4,824 million for the first quarter ended June 30, 2026 (Q1FY27), marking a 23% increase compared to ₹3,916 million in Q1FY26. The telecom infrastructure provider saw revenue from operations rise 11% to ₹25,099 million, up from ₹22,630 million in the previous year’s corresponding period. This performance underscores sustained demand in its core mobile services segment, which contributed significantly to the top-line growth, while improved cost efficiency expanded EBITDA margins by 100 basis points year-on-year.

The Board of Directors approved the audited standalone financial results in a meeting held on August 04, 2026, following review by the Audit Committee. The results were filed with the National Stock Exchange of India Limited and BSE Limited in compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Deloitte Haskins & Sells LLP served as the statutory auditor, issuing an unqualified opinion on the interim financial statements prepared under Ind AS 34.

Financial Performance Highlights

Revenue from operations increased to ₹25,099 million from ₹22,630 million in Q1FY26. Other income stood at ₹721 million, up from ₹475 million in the prior year quarter. Total expenses rose to ₹11,877 million from ₹11,023 million, primarily due to higher network operating expenses of ₹5,376 million and access charges of ₹2,041 million. EBITDA grew by 13% to ₹13,749 million, with the EBITDA margin expanding to 54.8% from 53.8% in the previous year.

Segment-wise Breakdown

Mobile Services remained the primary revenue driver, generating ₹23,953 million in Q1FY27, up from ₹21,916 million in Q1FY26. The Homes, Office and Other Services segment reported revenue of ₹1,265 million, a significant increase from ₹784 million in the previous year. Segment assets for Mobile Services grew to ₹173,705 million from ₹172,542 million, while total segment liabilities decreased slightly to ₹97,852 million from ₹100,076 million.

What the Numbers Show

The divergence between revenue growth (11%) and expense growth (8%) highlights improved operational efficiency. While network operating expenses increased, they did so at a slower pace than revenue, allowing EBITDA to expand by 13%. Additionally, finance costs declined marginally to ₹1,488 million from ₹1,541 million, aiding bottom-line expansion. The absence of exceptional items in Q1FY27 ensures that the profit growth is purely operational. Deferred tax credits of ₹505 million provided further support to net margins. Notably, net debt excluding lease obligations dropped sharply by 66% to ₹9,604 million from ₹28,064 million in the corresponding quarter last year, reflecting strong deleveraging.

Bharti Hexacom reported a robust start to FY27, with standalone net profit before exceptional items rising 23.2% year-on-year (YoY) to ₹482 crore for the quarter ended June 30, 2026. The bottom-line improvement was underpinned by a 10.9% YoY revenue increase to ₹2,510 crore and an expansion in EBITDA margin by 99 basis points to 54.8%, signaling strong operational leverage despite higher absolute costs. The results reflect successful execution in customer acquisition and average revenue per user (ARPU) growth within the mobile segment, alongside rapid scaling in the homes and office services division.

The Board of Directors, in a meeting held on August 04, 2026, approved the audited financial results based on recommendations from the Audit Committee. Deloitte Haskins & Sells LLP served as the independent auditor, issuing a clean opinion that the financial statements present a true and fair view in conformity with Ind AS 34. The filing complies with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Total revenues stood at ₹2,510 crore, up from ₹2,263 crore in Q1FY26. Other income contributed ₹721 million, bringing total income to ₹2,582 million. Total expenses increased 8% YoY to ₹1,188 million, driven primarily by a 25% rise in access charges to ₹204 million and a 9% increase in license fees/spectrum charges to ₹230 million. Network operating expenses remained stable at ₹538 million.

EBITDA grew 13.0% YoY to ₹1,375 crore, outpacing revenue growth and leading to the margin expansion. Depreciation and amortization expenses rose 12.4% YoY to ₹593 million, resulting in an EBIT of ₹770 crore, up 13.7% YoY. Net finance costs declined 22.4% YoY to ₹117 million, aided by lower interest rates and reduced debt levels. Tax expense was ₹171 million, including current tax of ₹221 million and deferred tax credit of ₹50 million.

Segment and Operational Highlights

Mobile services revenue grew 9.3% YoY to ₹2,395 million, supported by a higher ARPU of ₹259, up from ₹246 in Q1FY26. The smartphone data customer base expanded by 1.3 million YoY to 23.1 million, accounting for 80% of total mobile customers. Mobile data usage surged 30.5% YoY to 2,381 PBs, with average monthly usage per customer reaching 36.2 GB.

The Homes, Office and Other Services segment delivered exceptional growth, with revenue jumping 61.4% YoY to ₹127 million. This segment added 416K customers YoY, reaching a base of 0.9 million. The fiber network footprint expanded to 121 cities, up from 115 in Q1FY26. Bharti Hexacom also launched 'Postpaid Fast Lane,' leveraging 5G slicing technology to enhance service quality for high-value users.

Balance Sheet and Cash Flow

Capital expenditure for the quarter was ₹382 crore, focused on network expansion and technology upgrades. Operating free cash flow (EBITDA minus Capex) stood at ₹993 crore. Net debt excluding lease obligations improved significantly to ₹960 million as of June 30, 2026, down from ₹2,806 million a year earlier. Consequently, the annualized Net Debt-to-EBITDA ratio strengthened to 0.80 times from 1.30 times, while the Net Debt-to-EBITDAaL ratio (excluding leases) improved to 0.20 times from 0.65 times.

What the Numbers Show

The divergence between revenue growth (10.9%) and EBITDA growth (13.0%) highlights improved operational efficiency. While access charges and spectrum fees rose sharply, the company maintained control over network operating expenses, which grew only marginally. The significant reduction in net debt underscores a deleveraging strategy, enhancing financial flexibility for future investments in 5G infrastructure and broadband expansion.