Bharti Hexacom Limited has disclosed receiving a penalty notice from the Department of Telecommunications (DoT) for alleged violations of subscriber verification norms. The telecommunications company received the notice on February 17, 2026, imposing a penalty of Rs 2,20,000.

Penalty Details and Violation

The penalty stems from alleged violations of subscriber verification terms and conditions under the License Agreement. The Department of Telecommunications, North East LSA conducted a Sample Customer Application Form (CAF) Audit for the quarter ending September 2025, which led to the penalty imposition.

Regulatory Background

Under the terms of its License Agreement, Bharti Hexacom is required to ensure adequate verification of customers before enrolling them as subscribers and comply with instructions issued by DoT. The telecommunications regulator conducts periodic Customer Application Form Audits to confirm compliance with licensing terms and conditions.

Company's Response and Financial Impact

The company has stated that the maximum financial impact is limited to the extent of the penalty levied. However, Bharti Hexacom has indicated that the penalty disclosed is at a higher rate, which is currently under dispute before the Hon'ble Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

The company has assured that the maximum financial impact of the order is restricted to the penalty payable, if any, at the regular rate. This disclosure was made in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Compliance Declaration

Bharti Hexacom's Company Secretary and Compliance Officer, Amit Chaturvedi, has declared that the information provided in the disclosure is true, correct, and complete to the best of the company's knowledge and belief, as required under Regulation 30(13) of SEBI Listing Regulations.

Bharti Hexacom Limited delivered strong third quarter results with revenue reaching Rs 23.6 billion, representing a 4.8% year-on-year increase from Rs 22.5 billion in the corresponding quarter last year. The telecommunications company demonstrated robust performance across key financial metrics, with net profit surging 81% year-on-year to Rs 4.70 billion compared to Rs 2.60 billion in the previous year quarter.

Updated Financial Performance Overview

The company's latest financial results showcase strong EBITDA performance with earnings reaching Rs 12.5 billion compared to Rs 11.5 billion in the corresponding quarter last year. EBITDA margin improved to 53.16% from 51.2% in the previous year quarter, reflecting continued operational efficiency and cost optimization strategies.

The updated EBITDA figures demonstrate the company's strong operational performance with an 8.7% year-on-year growth. The 196 basis points improvement in EBITDA margin highlights effective cost management and revenue optimization across business segments.

Earnings Call Recording Available

Following the release of audited financial results for the third quarter and nine months ended December 31, 2025, Bharti Hexacom has made the earnings call recording available on its official website. The company announced on February 06, 2026, that the audio/video recording of the earnings call held the same day has been uploaded to comply with SEBI regulations.

Mobile Services Segment Growth

The mobile services segment demonstrated solid momentum with revenues growing 3.6% year-on-year, driven by higher Average Revenue Per User (ARPU) and steady customer base expansion. Mobile ARPU increased to Rs 253 from Rs 241 in the previous year quarter, representing a 4.8% improvement.

Data consumption patterns showed significant growth with average customer usage reaching 32.0 GB per month, up 22.1% from 26.2 GB in the previous year quarter. The smartphone data customer base expanded to 22.25 million, representing 78.5% of the total mobile customer base.

Homes Services Expansion

The Homes, Office and Other services segment achieved exceptional growth with revenues increasing 50.8% year-on-year. This segment added 73,000 new customers during the quarter, marking the highest ever quarterly net addition for the company.

The strong performance reflects successful expansion in both Fiber-to-the-Home (FTTH) and Fixed Wireless Access (FWA) services across 117 cities, demonstrating the company's diversification strategy beyond traditional mobile services.