Synopsis:- Reporting full-year revenue of Rs. 9,354 crore and a net profit of Rs. 1,733 crore for FY26, Bharti Hexacom delivered 16 percent profit growth alongside a 350 basis point expansion in EBITDA margin though Q4 PAT dipped year-on-year due to a normalisation in tax rates rather than any operational softness. The board has recommended a final dividend of Rs. 18 per share, its highest to date, and the company enters FY27 with meaningfully lower debt.
A telecom circle operator serving Rajasthan and the Northeast came into focus on Wednesday after its board approved audited results for the fourth quarter and full financial year ended March 31, 2026. The results, reviewed by Deloitte Haskins & Sells LLP, show broad-based improvement across revenue, EBITDA, and free cash generation, even as Q4 net profit declined year-on-year due to an unusually low tax base in the comparable quarter.
With a market capitalisation of Rs. 74,750 crore, the shares of Bharti Hexacom Limited were trading at Rs. 1,495 per share, up 0.37 percent from its previous closing price of Rs. 1,489.5. It is trading at a P/E of 42.97.
For the quarter ended March 31, 2026, Bharti Hexacom reported revenue from operations of Rs. 2,414 crore, up 5.5 percent from Rs. 2,289 crore in Q4 FY25, and 2.3 percent ahead of the preceding quarter. EBITDA for the quarter came in at Rs. 1,345 crore, a 10.7 percent year-on-year improvement, with EBITDA margin expanding to 55.7 percent from 53.1 percent in the same quarter last year.
The headline number that looks softer is Q4 net profit: Rs. 447 crore against Rs. 468 crore a year ago, a decline of around 4.6 percent. The explanation sits in the tax line. Profit before tax in Q4 FY26 was Rs. 606 crore, up 18 percent year-on-year from Rs. 513 crore. However, the effective tax rate this quarter was 26 percent versus just nine percent in Q4 FY25, when deferred tax reversals kept the tax charge unusually low. Stripping out tax, the underlying operational trajectory is positive. There was also an exceptional charge of Rs. 25 crore on account of government levies, the result of a re-assessment completed during the quarter.
The full-year picture is clearer. Revenue grew 9.4 percent to Rs. 9,354 crore from Rs. 8,548 crore in FY25, while EBITDA improved 16.8 percent to Rs. 5,114 crore, with margin widening from 51 percent to 53 percent. Net profit for FY26 was Rs. 1,733 crore against Rs. 1,494 crore the previous year 16 percent growth. Earnings per share for FY26 stood at Rs. 34.66 versus Rs. 29.87 in FY25.
The operating cash generation remains one of the company’s more durable strengths. Net cash from operating activities was Rs. 4,464 crore for FY26, down modestly from Rs. 4,583 crore in FY25, but sufficient to fund capital expenditure of roughly Rs. 1,448 crore on property, plant, and equipment while retiring debt and paying a larger dividend.
Homes Segment and Balance Sheet
Revenue from the Homes, Office and Other Services segment reached Rs. 381 crore for FY26, up 51 percent from Rs. 252 crore in FY25, a pace that suggests the broadband and fixed-line push in Rajasthan is gaining real traction. While this segment remains a fraction of total revenue, the growth rate separates it from the more mature mobile business, where FY26 revenue grew 8.3 percent to Rs. 9,011 crore.
On the balance sheet, total borrowings combining long-term and short-term debt fell from Rs. 3,780 crore at the end of FY25 to Rs. 2,694 crore at the end of FY26, a reduction of roughly Rs. 1,086 crore. Long-term debt alone declined from Rs. 2,652 crore to Rs. 2,416 crore, while short-term borrowings came down sharply from Rs. 1,128 crore to Rs. 279 crore. Finance costs for FY26 were Rs. 601 crore against Rs. 688 crore the prior year, down 13 percent. The combination of margin expansion and falling interest costs suggests that operating leverage is beginning to flow through meaningfully.
The board has recommended a final dividend of Rs. 18 per fully paid-up equity share of face value Rs. 5, subject to shareholder approval at the ensuing Annual General Meeting. In FY25, the company paid out Rs. 2,000 million in dividends; in FY26, that figure was Rs. 5,000 million, more than double.
Business Overview
Incorporated in 1995 and listed on both BSE and NSE, Bharti Hexacom provides mobile telephony, fixed-line, and broadband services across the Rajasthan and Northeast telecom circles under unified licences granted by the Department of Telecommunications. It is the second-largest wireless operator in these circles by subscriber share.
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The post Bharti Hexacom Ends FY26 on a Strong Note With 53% EBITDA Margin And ₹1,733 Cr PAT appeared first on Trade Brains.