Bharti Hexacom Ltd (BHARTIHEXA) Q1 FY27 Results Analysis: PAT Jumps 23%, Revenue Crosses Rs. 2,500 Cr

Bharti Hexacom Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 2,509.90 Cr (+10.90% YoY) and PAT growth of +23.20% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Bharti Hexacom delivered a clean quarter with revenue crossing Rs.2,500 Cr for the first time, EBITDA margin at a record 54.8%, and PAT growing 23.2% YoY. The balance sheet is in the strongest shape ever, with net debt/EBITDA at 0.80x and near-zero leverage ex-lease. The Homes segment continues to scale rapidly (61.4% revenue growth) and is on track to profitability, while ARPU growth without tariff hikes demonstrates the strength of organic levers. The company's strong cash generation and progressive dividend policy support a positive outlook.

Key Investment Insights

Key Positives

• Revenue crossed Rs.2,500 Cr for the first time, growing 10.9% YoY.
• PAT grew 23.2% YoY to Rs.482.4 Cr, with EPS of Rs.9.65.
• EBITDA margin at 54.8% (100 bps YoY expansion) is the highest in company history.
• Homes segment revenue surged 61.4% YoY, with EBITDA margin improving to 39.7% (from 31.8% a year ago).
• ARPU increased to Rs.259 (+5.1% YoY) without tariff hikes, driven by ancillary revenue and data monetisation.
• Net debt/EBITDA improved to 0.80x, and net debt ex-lease is just Rs.960.4 Cr.
• Operating cash flow was Rs.1,562.5 Cr, 3.24x reported PAT, indicating high earnings quality.
• Dividend recommended at Rs.18 per share for FY26, an 80% YoY increase.

Risk Factors

• Access charges grew 25.2% YoY, outpacing revenue growth, though this is a pass-through cost.
• Homes segment reported an EBIT loss of Rs.0.4 Cr due to higher depreciation from rapid investment.
• Homes net adds of 75k were lower than the record 148k in Q4FY26, though still healthy.