Bharti Hexacom Reports Robust Q2 FY26 Results with 66% Jump in Net Profit
Bharti Hexacom posted impressive Q2 FY26 results, with total revenue increasing 10.5% YoY to ₹2,317.00 crore. Net profit surged 66.4% to ₹421.00 crore, while EBITDA grew 20.1% to ₹1,256.00 crore. The company's customer base expanded 4.1% to 28.60 million, with ARPU improving to ₹251. Mobile Services revenue grew 9.6%, while Homes and Offices Services saw a 46.9% increase. The company's financial position strengthened with reduced net debt and improved debt ratios. Bharti Hexacom also focused on enhancing customer experience through strategic initiatives, including a partnership with Perplexity for AI-powered search services.
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Bharti Hexacom , a key player in the Indian telecommunications sector, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.
Financial Highlights
The company's performance for Q2 FY26 shows impressive year-on-year growth:
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Total Revenue | ₹2,317.00 crore | ₹2,098.00 crore | 10.5% |
| EBITDA | ₹1,256.00 crore | ₹1,046.00 crore | 20.1% |
| EBITDA Margin | 54.2% | 49.9% | 433 bps |
| Net Profit | ₹421.00 crore | ₹253.00 crore | 66.4% |
Operational Performance
Bharti Hexacom's operational metrics also showed positive trends:
- The total customer base grew to 28.60 million, a 4.1% increase year-over-year.
- Mobile data traffic surged by 27.0% YoY to 1,935 PBs.
- Average Revenue Per User (ARPU) improved to ₹251, up from ₹228 in Q2 FY25.
- The company expanded its network, adding 357 towers year-on-year, reaching a total of 26,529 network towers.
Segment Performance
Mobile Services
The Mobile Services segment, which forms the core of Bharti Hexacom's business, delivered strong results:
- Revenue grew by 9.6% YoY to ₹22,385.00 crore.
- EBITDA increased by 19.4% YoY to ₹12,266.00 crore.
- EBITDA margin expanded to 54.8%, up from 50.3% in Q2 FY25.
Homes and Offices Services
The Homes and Offices segment showed remarkable growth:
- Revenue increased by 46.9% YoY to ₹880.00 crore.
- Customer base expanded by 59.8% YoY, reaching 0.6 million.
- Net additions of 60,000 customers during the quarter.
Financial Position
Bharti Hexacom's financial position improved significantly:
- Net debt (excluding lease obligations) reduced to ₹28,183.00 crore from ₹48,561.00 crore in Q2 FY25.
- Net Debt to EBITDA ratio (annualized) improved to 1.25 times from 2.03 times in Q2 FY25.
- Net Debt to EBITDAaL ratio (annualized) improved to 0.64 times from 1.35 times in Q2 FY25.
Strategic Initiatives
The company continues to focus on enhancing customer experience and expanding its digital offerings:
- Bharti Hexacom, in collaboration with Bharti Airtel, partnered with Perplexity to offer Perplexity Pro subscription free of cost to all its customers, providing access to an AI-powered search and answer engine.
- The company reported significant progress in its fight against fraud, reducing financial losses for customers by nearly 70%.
Conclusion
Bharti Hexacom's Q2 FY26 results demonstrate strong performance across various financial and operational metrics. The company's focus on expanding its network infrastructure, improving ARPU, and enhancing digital services has contributed to its growth. However, it's important to note that the telecom sector remains highly competitive and subject to regulatory changes, which may impact future performance.
Historical Stock Returns for Bharti Hexacom
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.35% | -0.15% | +13.93% | +10.81% | +34.83% | +129.60% |
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