Bharti Hexacom Limited reported a net profit of ₹482 crore for the first quarter ended June 30, 2026 (Q1FY27), marking a 23.2% increase compared to ₹392 crore in Q1FY26. The telecom infrastructure provider saw total revenues rise 10.9% year-on-year to ₹2,510 crore, up from ₹2,263 crore in the previous year’s corresponding period. This performance underscores sustained demand in its core mobile services segment, supported by higher average revenue per user (ARPU) and continued customer additions, while improved cost efficiency expanded EBITDA margins by 99 basis points to 54.8%.

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 Regulation 30 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 ₹2,510 crore from ₹2,263 crore in Q1FY26. Other income stood at ₹72.1 million, up from ₹47.5 million in the prior year quarter. Total expenses rose primarily due to higher network operating expenses of ₹537.6 million and access charges of ₹204.1 million. EBITDA grew by 13% to ₹1,375 crore. Earnings before interest and taxes (EBIT) grew 13.7% YoY to ₹770 crore, with margins improving by 74 basis points to 30.7%.

Segment-wise Breakdown

Mobile Services remained the primary revenue driver, generating ₹2,395.3 million in Q1FY27, up from ₹2,191.6 million in Q1FY26. The Homes, Office and Other Services segment reported revenue of ₹126.5 million, a significant increase of 61.4% from ₹78.4 million in the previous year. Segment assets for Mobile Services grew to ₹17,370.5 million from ₹17,254.2 million, while total segment liabilities decreased slightly to ₹9,785.2 million from ₹10,007.6 million.

Operational Metrics

Smartphone data customers increased by 1.3 million year-on-year and 0.3 million quarter-on-quarter, now accounting for 80% of total mobile customers. Mobile ARPU increased to ₹259 in Q1'27 from ₹246 in Q1'26. Mobile data usage grew by 30.5% YoY, with average monthly usage per customer reaching 36.2 GB. The Homes, Offices and other segment added 416,000 customers year-on-year, taking the customer base to 0.9 million. The fiber network footprint expanded to 121 cities as compared to 115 cities in Q1'26. Capex for the quarter stood at ₹382 crore.

What the Numbers Show

The divergence between revenue growth (10.9%) and expense growth highlights improved operational efficiency. While network operating expenses increased, they did so at a slower pace than revenue, allowing EBITDA to expand by 13%. Finance costs declined marginally to ₹148.8 million from ₹154.1 million, aiding bottom-line expansion. The absence of exceptional items in Q1FY27 ensures that the profit growth is purely operational. Deferred tax credits of ₹50.5 million provided further support to net margins. Notably, net debt excluding lease obligations dropped sharply by 66% to ₹960.4 million from ₹2,806.4 million in the corresponding quarter last year, reflecting strong deleveraging. The Net Debt to EBITDA ratio (annualised) strengthened to 0.80 compared to 1.30 as of June 30, 2025.

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.