Bharti Hexacom Q3 FY26: PAT up 81.56% YoY as costs fall

Stock snapshot: market cap, price and relative returns

Bharti Hexacom, a subsidiary of Bharti Airtel Ltd., had a market capitalisation of ₹79,918 crore and a stock price of ₹1,643.75 as of February 5, 2026. Promoter holding stands at 70% as per the provided data. Over the past year, the stock delivered a return of 21.84%. This was slightly ahead of the Sensex gain of 6.44% over the same period. The price performance sets the context for evaluating the company’s operating and earnings trajectory. The latest quarterly numbers show a company prioritising profitability, even as revenue growth moderates.

Q3 FY26 earnings: the core theme

The December 2025 quarter (Q3 FY26) reflected a balance between steady revenue progression and sharper profitability optimisation. Net sales rose sequentially, but the pace of growth moderated versus the previous quarter. At the same time, operating profit reached its highest level in recent quarters, according to the figures cited. The quarter also showed an outsized jump in profit after tax compared with sales growth. The reported drivers included margin expansion, lower interest costs, and a favourable tax rate.

Revenue trend: sequential growth slows, YoY remains positive

Bharti Hexacom reported net sales of ₹2,359.80 crore in Q3 FY26. This translated to 1.83% quarter-on-quarter (QoQ) growth, down from 2.40% in Q2 FY26. The moderation suggests a softer sequential pace compared with the prior quarter’s momentum, as described in the text. However, the year-on-year (YoY) comparison remained positive at 4.85%. The combination indicates continued growth, but with a slower near-term trajectory than earlier quarters.

Operating performance: PBDIT hits a recent high

Operating profit (PBDIT excluding other income) was reported at ₹1,254.40 crore in Q3 FY26. The update described this as the highest level in recent quarters. While topline growth softened, the operating profit figure points to improved cost and efficiency outcomes during the quarter. The reported narrative emphasised the company’s ability to extract profitability from its existing subscriber base. In a telecom business, this usually aligns with better realisations and tighter operating discipline, though the text focused primarily on the outcome rather than operational line items.

Net profit: growth far ahead of sales

Net profit in Q3 FY26 was ₹473.70 crore, up 12.46% QoQ. On a YoY basis, net profit surged 81.56%, far outpacing the 4.85% YoY rise in net sales noted for the quarter. The data highlights a clear divergence between revenue growth and profit growth. The company’s PAT margin improved to 20.07% from 18.18%, according to the figures cited. This margin expansion was presented as a sign of stronger earnings quality.

What drove profit expansion: interest costs and tax rate

The profit acceleration in Q3 FY26 was attributed to multiple factors in the provided text. Interest costs fell to ₹147.00 crore from ₹154.10 crore in Q2 FY26. The effective tax rate also declined to 16.75% compared to 25.33% in the previous quarter. Alongside operating improvements, these two items provided a measurable lift to profit after tax. Taken together with the margin improvement, the quarter’s earnings profile was materially stronger than what the sales growth alone would suggest.

Nine-month performance: revenue and income rise year-on-year

For the nine months ended December 31, 2025, sales were reported at ₹6,940.10 crore compared with ₹6,258.90 crore a year earlier. Revenue was reported at ₹7,086.30 crore versus ₹6,392.90 crore in the corresponding period. Net income came in at ₹1,286.50 crore compared with ₹1,025.20 crore a year ago. Basic earnings per share (EPS) from continuing operations was ₹25.73 versus ₹20.50, and diluted EPS was also ₹25.73 versus ₹20.50. These nine-month figures point to sustained growth on both the topline and bottom line.

Dividend and yield: payout steady, yield constrained by price

Bharti Hexacom’s dividend yield was cited at 0.61%. This was lower than Bharti Airtel’s 0.80%, Tata Communications’ 1.61%, and Railtel’s 0.85% in the comparison provided. The dividend payout ratio was reported at 33.48%. The latest dividend mentioned was ₹10 per share, which went ex-dividend in July 2025. The text argued that the low yield reflects the elevated stock price rather than a conservative dividend stance. Separately, for FY2024-25, the company recommended a final dividend of ₹10 per fully paid-up equity share of face value ₹5, subject to shareholder approval at the AGM, with payment within 30 days of the AGM if approved.

FY25 context: Q4 revenue and ARPU metrics cited earlier

Earlier FY25 reporting in the provided material described Q4 FY25 consolidated revenue of ₹2,289 crore, up 22.5% YoY from ₹1,868 crore. Net revenue (after excluding access charges, license fees, and cost of goods sold) was cited at ₹1,822 crore, up 22.8% YoY. ARPU was reported at ₹242, with average data usage of 27.7 GB per user. EBITDA was described as ₹1,220 crore in Q4 FY25 versus ₹914 crore in Q4 FY24, and the EBITDA margin was cited as expanding from 48.9% to 53%. Another update also cited Q4 FY25 EBITDA at ₹1,168 crore versus ₹1,152 crore sequentially, with margin around 51% versus 51.2%.

Key numbers at a glance

Market impact and what investors tracked in this update

From a market perspective, the Q3 FY26 numbers place the focus on profitability rather than pure revenue acceleration. The combination of rising operating profit, lower interest costs, and a lower tax rate explains how net profit grew faster than sales. The dividend metrics also frame valuation sensitivity, with the yield remaining low against peers in the comparison shared. With the stock already showing a 21.84% one-year return as of the stated date, quarterly delivery on margins and earnings becomes a key driver of investor assessment.

Conclusion

Bharti Hexacom’s Q3 FY26 results showed modest sequential sales growth, but a sharper improvement in profitability, with net profit up 81.56% YoY and the PAT margin rising to 20.07%. The company also remained in focus for its ₹10 per share dividend track record, though dividend yield stayed low at 0.61% in the cited comparison. Investors will continue to weigh the pace of revenue growth against the company’s ability to sustain operating efficiency and the cost and tax benefits reflected in the latest quarter.