1. At a Glance
Bharti Hexacom Ltd (BHL) delivered an 18.4% YoY revenue growth to ₹2,263 crore and PAT doubled to ₹392 crore in Q1 FY26. With EBITDA margins at a jaw-dropping 53.8%, the company is squeezing every rupee out of Rajasthan and Northeast circles. Subscriber base: 28.65 million and growing. However, with a P/E of 64×, the stock trades like an exclusive 5G spectrum auction—only for those with deep pockets.
2. Introduction
While Vodafone Idea is out here bleeding cash like a bad SIM swap scam, Bharti Hexacom quietly booked another quarter of high-margin growth. The company is basically Airtel’s regional warrior, dominating Rajasthan and Northeast telecom circles with a 37.6% subscriber market share. Q1 FY26 numbers prove its stronghold: revenue up, profit up, and ARPU likely inching higher thanks to tariff hikes and data consumption mania.
But is the stock priced like a cheap prepaid plan? Nope. At 64× earnings and 15.6× book, it’s the telecom version of a VIP lounge—premium, restricted, and not for value investors faint of heart.
3. Business Model (WTF Do They Even Do?)
BHL provides mobile services (4G/5G), fixed-line broadband, and some enterprise solutions in its licensed circles. Think of it as Airtel’s franchise in Rajasthan and Northeast, except it directly reports its own results.
Revenue mix:
- Mobile services: ~85%
- Broadband: ~10%
- Others: ~5%
It thrives on:
- Data consumption surge (OTT + reels = money)
- Tariff hikes (customers grumble, ARPU smiles)
- Low churn rates in its dominant markets.
Scale advantage + Airtel’s backend = fat OPM (~51%). But the business remains capex-intensive, with continuous network investments to stay ahead.
4. Financials Overview
Fresh P/E: Q1 EPS ₹7.83, annualized to ₹31.3; CMP ₹1,847 → P/E ≈ 59× (not 64× as shown).
Q1 FY26 Highlights:
- Revenue: ₹2,263 cr (+18.4% YoY)
- EBITDA: ₹1,161 cr (+33% YoY), margin 53.8%
- PAT: ₹392 cr (2× YoY), margin 17.3%
- Net Debt: ₹7,353 cr
- ROCE: 17.4% | ROE: 25.2%
Commentary: BHL is a cash flow beast, but debt is sticky, and at a P/E near 60×, the market is already pricing in years of smooth 5G
