Bharti Hexacom LimitedQ1 FY27 Results & Financial Update
Bharti Hexacom Limited: Q1 FY27 standalone results and company financials – revenue ₹2,509.90 Cr, PAT ₹482.40 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarter overview
Quarterly earnings analysis
Bharti Hexacom delivered total revenues of Rs 2,509.9 crore for the first quarter ended June 30, 2026, marking an increase compared to the same period in the prior year as cited in company disclosures.
Profit after tax for Q1 FY27 stood at Rs 482.4 crore, supported by a growing customer base, higher data consumption, and improved operational efficiencies across circles.
Total customer base expanded to 29.90 million by the end of June 2026, representing a 4.4% year-on-year increase from 28.65 million customers reported in the corresponding period of the previous year.
The homes, office, and other services segment demonstrated rapid expansion, achieving a revenue growth rate of 61.4% year-on-year alongside 75,000 customer net additions during the quarter to reach 0.9 million users.
Network infrastructure continued to scale, with total network towers reaching 26,889 and mobile broadband base stations totaling 96,012 at the close of the quarter.
Capital expenditure for the quarter was reported at Rs 382.2 crore, directed toward network expansion, 5G deployment, and fibre infrastructure enhancements.
Net debt excluding lease obligations dropped significantly to Rs 960.4 crore as of June 30, 2026, compared to Rs 2,806.4 crore a year earlier, strengthening the balance sheet and reducing leverage ratios.
01 · Business model
What does Bharti Hexacom do?
Bharti Hexacom Limited operates as a communications solutions provider offering consumer mobile services, fixed-line telephone, broadband, and IPTV services under the 'Airtel' brand.
The company's operational footprint covers the Rajasthan telecommunication circle and the Northeast circle in India, comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
The economic model focuses on portfolio premiumization through an omni-channel approach, data science, digital offerings, and family or converged plans via the Airtel Black proposition to capture revenue market share.
The company maintains active network partnerships with equipment and service providers such as Ericsson, Nokia, Google, and Ceragon, minimizing reliance on any single vendor for critical telecom infrastructure.
02 · Historical context
What shaped the business before this quarter
The company was originally incorporated in 1995 as Hexacom India Limited and became a subsidiary of Bharti Airtel in 2004 when a majority equity interest was acquired.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹2,509.90 Cr |
| Total income | ₹2,582.00 Cr |
| Profit before tax | ₹653.00 Cr |
| Profit after tax | ₹482.40 Cr |
| EPS | ₹9.65 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Average Revenue Per User (ARPU) for mobile services rose to Rs 259 per month for June 2026, compared to Rs 246 in the corresponding quarter of the previous year.
Mobile data traffic expanded by 30.5% year-on-year to 2,381 petabytes, driven by an increase in smartphone data customers to 23.07 million and higher average data usage per customer of 36.2 GB per month.
The homes, office, and other services division posted revenues of Rs 126.5 crore, reflecting a 61.4% increase year-on-year backed by customer additions across 121 cities.
Revenue generation is anchored by mobile telecommunication services across Rajasthan and the Northeast, supported by a growing home services portfolio spanning broadband and IPTV in select cities.
What drove margins
Net revenues, after adjusting for access charges, cost of goods sold, and license fees, stood at Rs 2,051.8 crore, representing an increase from the comparable prior-year period.
Net finance costs decreased by 22.4% year-on-year to Rs 116.9 crore for the quarter, easing pressure on pre-tax earnings.
Profitability is influenced by network operating expenses, spectrum and license charges, access fees, and financing costs, alongside depreciation charges on network and intangible infrastructure.
05 · Demand, customers & order book
Where demand is coming from
Total customer base across mobile and fixed services reached 29.90 million users, reflecting steady quarterly net additions and a low monthly churn rate of 2.3%.
The company serves millions of mobile customers and a growing base of data and home broadband subscribers utilizing its high-speed network infrastructure.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Mobile services generated revenues of Rs 2,395.3 crore in Q1 FY27, up 9% year-on-year, with EBITDA reaching Rs 1,324.7 crore and a segment EBITDA margin of 55.3%.
Segment revenue reached Rs 126.5 crore with an EBITDA of Rs 50.2 crore, reflecting an improved EBITDA margin of 39.7% compared to 31.8% in Q1 FY25.
The company operates across mobile services and homes, office and other services, delivering broadband, fixed-line, and digital entertainment.
Geography and market mix
Operations remain centered across the Rajasthan and Northeast telecommunication circles, covering population reach across 488 census towns and 68,623 non-census villages.
Operations remain concentrated in the Rajasthan telecom circle and the six northeastern states, encompassing extensive census and non-census towns.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
The company operated 26,889 network towers and 96,012 mobile broadband base stations as of June 30, 2026.
The infrastructure includes thousands of network towers and mobile broadband base stations deployed across urban and challenging mountainous regions.
Projects, capex and execution
Capital expenditure for the quarter ended June 30, 2026, was Rs 382.2 crore, supporting mobile broadband base station rollouts and fiber infrastructure.
Capital expenditure is directed toward continuous network expansion, 4G/5G technology advancements, and judicious spectrum investments.
08 · Strategy & new businesses
How the company is trying to change its growth mix
In collaboration with Bharti Airtel, the company introduced Fast Lane using 5G slicing technology to provide enhanced network speeds for postpaid and high-usage customers.
The company completed the first phase of a strategic partnership with the 4 Corps of the Indian Army, extending mobile connectivity across 30 stations in the mountainous terrain of Arunachal Pradesh.
Strategy focuses on portfolio premiumisation, omnichannel engagement, Airtel Black converged plans, and targeted 5G slicing rollouts.
09 · Reported developments
What changed operationally
Net income before and after exceptional items reached Rs 482.4 crore, up 23% compared to Rs 391.6 crore in Q1 FY26.
The annualized Net Debt-to-EBITDA ratio improved to 0.80 times as of June 30, 2026, compared to 1.30 times a year earlier.
10 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Net cash generated from operating activities for the quarter was Rs 1,562.5 crore, compared to Rs 1,343.7 crore in the corresponding quarter of the previous year.
Capital allocation & funding
Net debt including lease obligations stood at Rs 4,392.5 crore as of June 30, 2026, down from Rs 6,316.0 crore as of June 30, 2025.
The company maintains a capital structure comprising long-term borrowings, lease liabilities, and deferred payment obligations for spectrum.
11 · Beyond the numbers
What changed beyond the numbers
Network Coverage Milestone
Population coverage across Rajasthan and the Northeast circles reached 96.6% by the end of the quarter.
12 · Previous-quarter changes
What changed since the previous quarter
Total customer base grew sequentially from 29.62 million in Q4 FY26 to 29.90 million in Q1 FY27.
13 · Key Q&A
The quarter, answered directly
What does Bharti Hexacom do?
Bharti Hexacom Limited operates as a communications solutions provider offering consumer mobile services, fixed-line telephone, broadband, and IPTV services under the 'Airtel' brand.
What is the clearest takeaway from Q1 FY27?
Bharti Hexacom delivered total revenues of Rs 2,509.9 crore for the first quarter ended June 30, 2026, marking an increase compared to the same period in the prior year as cited in company disclosures.
What drove revenue or demand?
Average Revenue Per User (ARPU) for mobile services rose to Rs 259 per month for June 2026, compared to Rs 246 in the corresponding quarter of the previous year.
What mattered most for margins or profitability?
Net revenues, after adjusting for access charges, cost of goods sold, and license fees, stood at Rs 2,051.8 crore, representing an increase from the comparable prior-year period.
What changed operationally beyond the headline numbers?
The company operated 26,889 network towers and 96,012 mobile broadband base stations as of June 30, 2026.
What should the next disclosure help confirm?
Monitor future ARPU progression as smartphone data adoption and 5G services scale across the Rajasthan and Northeast circles.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Build your own next-quarter scenario
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15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
ARPU Trajectory: Monitor future ARPU progression as smartphone data adoption and 5G services scale across the Rajasthan and Northeast circles.
- 02
Home Broadband Expansion: Track city coverage expansion and net subscriber additions in the homes, office, and other services segment.
- 03
Operational Performance: Monitor subsequent quarterly filings for trends in customer net additions, ARPU, and mobile data consumption.
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