Bharti Hexacom Q3 Profit Soars 81.5% on Strong ARPU Growth

Introduction

Bharti Hexacom Ltd. has reported a significant 81.5% year-on-year (YoY) increase in net profit for the third quarter of fiscal year 2026. The profit for the quarter ending December 31, 2025, stood at ₹473.7 crore, a substantial rise from ₹261 crore in the same period last year. This growth was supported by a nearly 5% increase in revenue to ₹2,359.8 crore, primarily driven by higher average revenue per user (ARPU) and consistent subscriber additions.

Strengthening Operational Metrics

The company's operational efficiency saw marked improvement. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 9% YoY to reach ₹1,254.4 crore. The EBITDA margin expanded by 200 basis points, climbing to 53.2% from 51.2% in the corresponding quarter of the previous year. This indicates better cost management and profitability from core operations. The Earnings Before Interest and Taxes (EBIT) for the quarter was reported at ₹715 crore, resulting in a healthy EBIT margin of 30.3%.

Subscriber Growth and Data Consumption

Bharti Hexacom continued to witness strong momentum in customer acquisition and data usage. The total customer base expanded by 3.7% over the year to reach 2.90 crore. Within this, the number of smartphone users grew to 2.22 crore, highlighting the ongoing transition to higher-value services. The demand for data remained robust, with mobile data traffic surging by 29.8% YoY to 2,022 petabytes. This trend is further reflected in the average data usage per customer, which climbed an impressive 22.1% to 32 GB per month.

Financial Health and Cost Management

A key factor contributing to the sharp rise in net profit was a significant reduction in finance costs. Net finance costs for the quarter declined by 22.7% YoY to ₹137 crore. This, combined with the operational margin expansion, provided a strong boost to the bottom line. While depreciation and amortization expenses increased by 6.6% to ₹566.8 crore due to network investments, overall operating expenses were managed effectively, rising 6.8% YoY but declining 1.9% sequentially.

Expansion in Homes Business and Network

The company's strategic focus on diversifying its revenue streams is paying off, particularly in its homes business. This segment, which provides broadband services, saw its revenue increase by 50.8% YoY. The company added 73,000 new home broadband customers during the quarter, expanding its presence to 117 cities. To support this growth and enhance mobile service quality, Bharti Hexacom continued its network expansion, operating 26,572 towers and 93,472 mobile broadband base stations by the end of the quarter.

Q3 FY26 Performance Summary

(Note: Q3 FY25 figures for finance costs, customer base, and data usage are calculated based on the provided percentage changes for comparison.)

Market Reaction and Outlook

Following the strong results, the market responded positively. Shares of Bharti Hexacom Ltd closed at ₹1,620.10 on February 5, 2026, marking an increase of 0.55% for the day. The company's performance highlights its ability to effectively monetize its growing user base through higher ARPU and increased data consumption. The significant growth in the homes business presents a promising new avenue for expansion. While the company has not provided specific forward-looking guidance, the current operational trends suggest a positive outlook. Key factors to monitor will be the sustainability of ARPU growth, continued subscriber additions, and the pace of expansion in the home broadband segment.

Conclusion

Bharti Hexacom's third-quarter results for FY26 demonstrate a robust financial and operational performance. The impressive 81.5% surge in net profit, driven by operational efficiencies, lower finance costs, and strong subscriber metrics, positions the company well in the competitive telecom market. The continued expansion of its high-speed data network and the rapid growth of its home broadband services are expected to be key growth drivers in the future.