Bharti Hexacom (BHARTIHEXA) Q1 25/26 earnings summary

Executive summary

• Delivered a steady quarter with revenue of INR 2,263 Crores (₹22,630 million) and EBITDA of INR 1,079 Crores, margin at 47.7%, up 110 bps sequentially.

• Net customer additions: 17,000 mobile and 54,000 homes; ARPU at INR 246, benefiting from mix improvement and an extra day in the quarter.

• Operating free cash flow was INR 854 Crores; net debt (ex-leases) at INR 2,806 Crores, net debt/EBITDA at 0.7x.

• Audited financial results for the quarter ended June 30, 2025, were approved by the Board on August 5, 2025.

• Focused on digital tools for customer experience, including anti-spam solutions and leveraging partnerships for digital content and AI capabilities.

Financial highlights

• Revenue from operations for Q1 FY26 was ₹22,630 million, up from ₹19,106 million year-over-year.

• EBITDA: INR 1,079 Crores, margin 47.7%, up 110 bps sequentially.

• Net profit for the quarter was ₹3,913 million, compared to ₹5,108 million in Q1 FY25.

• Operating free cash flow: INR 854 Crores.

• ARPU: INR 246, reflecting mix improvement and seasonality.

Outlook and guidance

• Homes and office business expected to maintain strong momentum in net additions.

• CapEx intensity to marginally unwind as rural acceleration program site rollout is largely complete; annual CapEx to trend lower.

• Board to consider higher dividend payouts as surplus funds accumulate, but future investments in site and 5G expansion remain possible.

• Management and auditors confirmed the company’s ability to continue as a going concern.