Bharti Hexacom, a regional telecom arm of Bharti Airtel, released its Q1 FY26 financial results on 5th August 2025. The company delivered a mixed performance for the quarter ended 30th June 2025, with strong revenue growth offset by a decline in net profit.
For the first quarter of FY26, Bharti Hexacom reported a Profit After Tax (PAT) of ₹391.60 crores against revenue of ₹2,263.00 crores. While revenue rose 18.44% YoY, profit fell 23.40% YoY, indicating margin pressure despite higher top-line growth.
Standalone Financial Performance: Q1 FY26 vs Q1 FY25
Bharti Hexacom’s standalone financial performance highlights the divergence between revenue growth and profit decline.
| Particulars | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | ₹2,263.00 crores | ₹1,910.60 crores |
| Profit Before Tax (PBT) | ₹1,208.20 crores | ₹915.70 crores |
| Profit After Tax (PAT) | ₹391.60 crores | ₹511.20 crores |
Key Observations:
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Revenue Growth: Revenue rose 18.44% YoY, indicating strong subscriber additions and data usage growth in its operational circles.
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Profit Decline: PAT declined 23.40% YoY, suggesting higher costs, increased depreciation, or other operational expenses impacted margins.
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PBT Growth: Interestingly, PBT rose from ₹915.70 crores to ₹1,208.20 crores, implying that non-operational or tax factors primarily affected the PAT decline.
Highlights of Q1 FY26 Performance
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Revenue: ₹2,263.00 crores vs ₹1,910.60 crores in Q1 FY25.
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PAT: ₹391.60 crores vs ₹511.20 crores in Q1 FY25.
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Revenue Growth: 18.44% YoY.
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Profit Decline: 23.40% YoY.
Bharti Hexacom’s revenue expansion signals its growing presence in regional telecom markets, but the PAT decline indicates rising operational or financial costs.
Bharti Hexacom Share Price Performance
Following the Q1 FY26 results, Bharti Hexacom shares saw some initial volatility.
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Opening Price (6th August 2025): ₹1,800.00 per share
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Current Trading Price: ₹1,788.90 per share
Despite a slight decline on result day, Bharti Hexacom has delivered strong long-term returns:
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1-Year Returns: 64.01%
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5-Year Returns: 120.25%
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All-Time Returns: 120.25%
The stock has rewarded long-term investors handsomely, even though short-term performance reflects market caution over the profit decline.
Factors Behind Q1 FY26 Performance
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Strong Subscriber and Data Revenue: Revenue grew due to higher user additions and increased ARPU from data services.
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Operational Cost Pressure: Rising network expansion, 5G rollout costs, and possible spectrum-related expenses affected margins.
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Tax and Non-operational Impact: While PBT improved, PAT declined, suggesting taxation or interest costs affected the net profit.
Investor Outlook and Future Prospects
Bharti Hexacom remains a strategic regional telecom player for Bharti Airtel, benefiting from:
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Rising Data Consumption: Increasing 4G and 5G usage will support revenue growth.
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Regional Market Penetration: Expansion in high-potential telecom circles can drive long-term profitability.
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Parent Support: Backing from Bharti Airtel ensures access to infrastructure and capital for growth initiatives.
Investor Note:
While revenue growth is strong, the PAT decline highlights the need for cost management. Investors should watch for margin improvement in the coming quarters. Long-term prospects remain supported by India’s growing digital ecosystem and telecom penetration.
Conclusion
Bharti Hexacom’s Q1 FY26 results present a mixed picture, with 18.44% revenue growth but 23.40% PAT decline. Strong top-line growth indicates operational expansion, but bottom-line pressure suggests rising costs and non-operational impacts.
Despite short-term concerns, Bharti Hexacom’s long-term returns remain impressive, and its strategic role in India’s growing telecom sector positions it for future opportunities.
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