This Bharti Enterprises Group stock, engaged in providing telecom services, including mobile, fixed-line, broadband, 2G/4G/5G networks, intra-city fiber, and digital communication solutions, is in focus after CLSA and Jefferies gave a mixed opinion on the company after the June quarter results.
With a market capitalization of Rs. 87,087.50 crores, the shares of Bharti Hexacom Limited closed at Rs. 1,741.75 per equity share, down nearly 2.96 percent from its previous day’s close price of Rs. 1,794.80. The stock is down by 15.08 percent from the 52-week high of Rs. 2,051. Over the last year, the stock has given a positive return of 54.96 percent.
CLSA, a prominent brokerage firm, has recommended an “Underperform” call on Bharti Hexacom Limited with a target price of Rs. 1,525 per share, indicating a downside potential of 12.44 percent.
Bharti Hexacom reported revenue of Rs. 2,263 crore for the latest quarter, marking a 1.14 percent decline compared to the previous quarter but an 18.42 percent increase year-on-year. This figure was below market expectations.
The company’s average revenue per user (ARPU) rose to Rs. 246, up 2 percent quarter-on-quarter and 20 percent year-on-year. Notably, Bharti Hexacom’s ARPU is 18 percent higher than that of Reliance Jio, reflecting stronger monetization per user.
In the home broadband segment, the company achieved its highest-ever net addition by adding 54,000 new subscribers, bringing the total customer base in this segment to 502,000. Despite the growth, home broadband continues to contribute only 3 percent to total revenue.
The company’s EBITDA came in at Rs. 1,160 crore, down 1 percent from the previous quarter but up 33 percent compared to the same period last year. Like revenue, EBITDA also missed analyst estimates, suggesting some pressure on operational performance despite overall year-on-year growth.
Additionally, Jefferies, a prominent brokerage firm, has also recommended a “Buy” call on Bharti Hexacom Limited with a target price of Rs. 2,250 per share, indicating an upside potential of 29.18 percent.
According to Jefferies, Bharti Hexacom’s revenue performance met expectations, but profitability fell short due to higher network and other operating costs. As a result, the brokerage trimmed its estimates by 1-3 percent.
Despite the near-term miss, it remains optimistic about the company’s long-term growth, projecting a strong compound annual growth rate (CAGR) of 24 percent in EBITDA and 29 percent in free cash flow (FCF) over FY25–28E. Jefferies noted that Bharti Hexacom’s growth continues to outpace that of parent company Bharti Airtel, and this stronger performance is expected to support and justify its current valuation premium.
Company Overview
Bharti Hexacom Limited is an Indian telecommunications company providing mobile services, fixed-line telephone, and broadband services primarily in the Rajasthan and Northeast telecom circles. It operates as a subsidiary of Bharti Airtel Limited, with Bharti Airtel holding a 70 percent stake and the Government of India holding 30 percent.
The company was incorporated in 1995 and was formerly known as Hexacom India Limited before its name change in December 2004. Bharti Hexacom is the second-largest wireless mobile operator in its service regions with a significant market share and offers a range of telecom services, including 2G, 4G, and 5G mobile networks, as well as intra-city fiber connectivity.
The company focuses on consumer mobile services and home/office voice and data communication solutions under the Airtel brand. It also provides integrated digital services such as Airtel Black, which bundles mobility, broadband, fixed line, and digital TV services.
Recent quarter results
Coming into financial highlights, Bharti Hexacom Limited’s revenue has increased from Rs. 1,911 crore in Q1 FY25 to Rs. 2,263 crore in Q1 FY26, which has grown by 18.42 percent. The net profit has decreased by 23.29 percent from Rs. 511 crore in Q1 FY25 to Rs. 392 crore in Q1 FY26.
In terms of return ratios, the company’s ROCE and ROE stand at 17.4 percent and 25.2 percent, respectively. Bharti Hexacom Limited has an earnings per share (EPS) of Rs. 27.5, and its debt-to-equity ratio is 1.24x.
Written By – Nikhil Naik
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