Bharti Hexacom , a subsidiary of Bharti Airtel operating in Rajasthan and North Eastern states, has reported steady financial results for the first quarter, demonstrating improved profitability despite a slight dip in revenue.

Financial Performance

The company posted revenue of ₹2,263.00 crores for Q1. While the top line saw a marginal decline due to reduced roaming revenue, Bharti Hexacom managed to improve its profitability. The company's EBITDAaL (Earnings Before Interest, Tax, Depreciation, and Amortization after Leases) stood at ₹1,079.00 crores, with an impressive margin of 47.70%, marking a sequential improvement of 110 basis points.

Operating free cash flow, calculated as EBITDAaL minus capital expenditure, remained robust at ₹854.00 crores. This strong cash generation underscores the company's operational efficiency and financial health.

Customer Base and ARPU

Bharti Hexacom added 17,000 mobile customers and 54,000 home broadband customers during the quarter. Notably, the company saw a significant addition of 283,000 smartphone customers, indicating a positive shift towards higher-value services.

The Average Revenue Per User (ARPU) for the quarter reached ₹246.00, benefiting from continued mix improvement and an extra day in the quarter. This ARPU growth reflects the company's focus on quality customers and value-added services.

Balance Sheet Strength

The company's balance sheet remains strong, with net debt (excluding leases) at ₹2,806.00 crores. The net debt to EBITDAaL ratio stands at a comfortable 0.70 times, indicating a healthy leverage position.

Strategic Initiatives

Bharti Hexacom continues to leverage partnerships and digital tools to enhance customer experience. The company highlighted two key areas of focus:

1. Digital Tools: The company's anti-spam solution has identified 2.50 billion spam calls since its launch, demonstrating its commitment to customer safety and service quality.

2. Partnerships: Bharti Hexacom is benefiting from Airtel's partnerships, including the recent collaboration with Perplexity AI, offering free AI capabilities to customers for a year at no extra cost.

Home Broadband Momentum

The home broadband business is showing strong momentum, with sustained net additions. The company expects this trend to continue, driven by both fiber and Fixed Wireless Access (FWA) technologies.

Outlook

While the reduction in roaming revenue impacted the top line, Bharti Hexacom's focus on operational efficiency and quality customer acquisition is yielding results in terms of improved profitability. The company's strategic investments in network expansion, digital capabilities, and customer-centric offerings position it well for future growth in its operating regions.

As Bharti Hexacom continues to leverage Airtel's partnerships and technological capabilities, it aims to deliver enhanced value to its customers while maintaining a strong financial position in the competitive telecom landscape.

Bharti Hexacom Limited , a leading communications solutions provider, has announced robust financial results for the first quarter ended June 30, 2025 (Q1 FY26), demonstrating strong growth across key metrics.

Revenue Growth and Profitability

The company reported total revenues of Rs 2,263.00 crore for Q1 FY26, marking an impressive 18.4% year-over-year increase. This growth was primarily driven by a 17.8% rise in mobile services revenues, attributed to tariff improvements and strong smartphone data customer additions.

Bharti Hexacom's profitability saw significant improvement, with EBITDA reaching Rs 1,217.00 crore, up 33.5% compared to the same quarter last year. The EBITDA margin expanded by 606 basis points to 53.8%, reflecting enhanced operational efficiency.

Net income (before exceptional items) more than doubled year-over-year to Rs 392.00 crore, showcasing the company's strong financial performance.

Operational Highlights

The company's operational metrics demonstrated robust momentum:

• Overall customer base grew to 28.65 million, up 2.6% year-over-year
• Mobile data traffic surged by 23.8% to 1,824 petabytes (PBs)
• Smartphone data customers increased by 1.6 million year-over-year, now comprising 77% of the overall mobile customer base
• Mobile ARPU (Average Revenue Per User) rose to Rs 246.00, compared to Rs 205.00 in Q1 FY25
• Data usage per customer reached 29.4 GB per month, up 14.5% year-over-year

Segment Performance

Mobile Services

The mobile services segment, which forms the core of Bharti Hexacom's business, posted strong results:

• Revenues increased by 17.8% year-over-year
• EBITDA margin improved to 54.4%, up from 48.0% in the same quarter last year
• EBIT grew by 65% year-over-year

Homes and Office Services

The Homes and Office Services segment witnessed substantial growth:

• Revenues surged by 38.0% year-over-year
• Net customer additions of 54,000 during the quarter, bringing the total customer base to 502,000
• Now operational in 115 cities, reflecting the company's expanding reach

Financial Position

Bharti Hexacom's financial position strengthened during the quarter:

• Net Debt to EBITDA ratio (annualized) improved to 1.30 times, compared to 2.07 times in Q1 FY25
• Net Debt (excluding lease obligations) to EBITDAaL ratio (annualized) decreased to 0.65 times, down from 1.29 times in the previous year

Strategic Initiatives

The company continued to focus on enhancing customer experience and expanding its service offerings:

1. Partnered with Google to offer 100 GB of Google One cloud storage free for six months to postpaid and Wi-Fi customers.
2. Enhanced its AI-powered spam detection tool with language alerts and international spam call alerts, now available in nine Indian languages.
3. Launched new entertainment packs for prepaid customers, offering access to over 25 leading OTT platforms starting at Rs 279.00 for one month.
4. Signed agreements to acquire rights to 50 MHz of spectrum in the 26 GHz band in Rajasthan, pending regulatory approvals.

Outlook

With its strong Q1 FY26 performance, Bharti Hexacom has demonstrated its ability to capitalize on the growing demand for mobile and broadband services. The company's focus on expanding its customer base, improving ARPU, and enhancing its service offerings positions it well for continued growth in the competitive Indian telecommunications market.

As Bharti Hexacom continues to invest in network expansion and technology advancements, it remains well-positioned to meet the evolving needs of its customers and drive further growth in the coming quarters.