Bharti Hexacom (BHARTIHEXA) Q3 25/26 earnings summary

Executive summary

• Consolidated revenue reached INR 54,000 crore, up 3.5% sequentially, with strong performance in both India and Africa; Africa revenue grew 5.8% in constant currency, India (ex-passive infra) up 2.1% sequentially.

• EBITDA exceeded INR 27,700 crore, up 4.2% sequentially, with a margin of 51.3%, and operating free cash flow at INR 15,900 crore.

• India Mobile and Broadband segments showed robust growth, with 4.4 million new revenue-earning customers and 1.2 million broadband net adds, reaching 13 million connected homes.

• Digital portfolio revenues grew 39% year-over-year, and the company continues to invest in cloud, cybersecurity, IoT, and financial services.

• ESG initiatives advanced, with over 3,000 new solar sites and significant progress in digital inclusion and education outreach.

• Total revenues for Q3 FY26 reached Rs 23,598 Mn, up 4.8% year-over-year and 1.8% sequentially, with nine-month revenues at Rs 69,401 Mn, up 11% YoY.

• EBITDA for the quarter was Rs 12,820 Mn, up 7.4% YoY, with a margin of 54.3%, and EBIT at Rs 7,151 Mn, up 8% YoY.

• Net income (before exceptional items) for Q3 was Rs 4,318 Mn, up 19% YoY; after exceptional items, net income was Rs 4,737 Mn, up 82% YoY.

• Customer base grew to 29.04 million, up 3.7% YoY, with mobile ARPU rising to Rs 253 from Rs 241 YoY.

• Homes, Office and Other Services segment saw 50.8% YoY revenue growth and 73K net customer additions in Q3.

Financial highlights

• Consolidated EBITDA margin improved by 30 bps sequentially to 51.3%; India EBITDA margin (ex-passive infra) at 51.8%.

• CapEx for the quarter was INR 11,800 crore; operating free cash flow at INR 15,900 crore.

• Net debt to EBITDA improved to 1.02 (India at 1.38), reflecting a strong balance sheet and prudent capital allocation.

• Africa contributes 27% of revenues, India Mobile 53%, India Non-Mobile 13%, Indus 7%.

• ARPU reached INR 259, with international roaming revenue growing over 30% year-over-year.

• EBITDA margin improved to 54.3% (up 1.3 pp YoY); EBIT margin at 30.3% (up 0.9 pp YoY).

• Net debt reduced to Rs 56,289 Mn from Rs 78,900 Mn YoY; net debt/EBITDA (annualized) at 1.10x, net debt/EBITDAAL at 0.48x.

• Capex for the quarter was Rs 3,403 Mn, up 20% YoY.

• Operating free cash flow (EBITDA - Capex) for Q3 was Rs 9,417 Mn, up 3% YoY.

• Return on equity (post-tax) reached 27.1% for the quarter.

Outlook and guidance

• Continued focus on ARPU growth through premiumization, data monetization, and international roaming in the absence of tariff hikes.

• Ongoing investments in 5G, fiber, and digital services to drive future growth and maintain competitive positioning.

• Data center investments to be stepped up, targeting 1 GW capacity in 3-4 years and aiming for 25% market share.

• Prudent capital allocation remains a priority, with a progressive dividend policy and focus on core and adjacent businesses.

• Management continues to focus on premiumization, network expansion, and digital offerings to drive growth.

• Ongoing investments in FTTH, FWA, and digital services expected to support future revenue and customer growth.