Bharti Hexacom Limited Q3 FY26 Earnings Call Summary

Summary

Bharti Hexacom Limited - Q3 FY2026 Earnings Call Summary Friday, February 6, 2026 14:30 IST

Event Participants

Executives 6 Akhil Garg, Gopal Vittal, Karthikeyan Velu, Naval Seth, Shashwat Sharma, Soumen Ray

Analysts 6 Arun Prasath, Gaurav Malhotra, Gaurav Rateria, Manish Adukia, Piyush Choudhary, Pranav Kshatriya, Sanjesh Jain, Vivekanand Subbaraman

Financials & KPIs

Geographic & Segment Commentary

• Rajasthan & Northeast (Mobile): Revenue growth was slightly impacted by partner-related interference issues, though underlying growth remains aligned with national averages. The segment benefited from seasonal national in-roaming during the winter months, particularly in Rajasthan. Strategy remains focused on upgrading the existing base from feature phones to smartphones.
• Homes (Broadband & FWA): Delivered robust acceleration with a 10% sequential revenue increase, driven by FWA expansion into new pin codes. The company is leveraging FWA to bypass difficult terrain where fiberization is challenging. IPTV services were launched in both circles during the quarter to drive a converged home strategy.
• B2B & Digital: B2B opportunities remain limited as the market is concentrated among top 500 companies, few of which are headquartered in these circles. Digital TV is seeing strong affinity through IPTV adoption. Data Center needs are currently serviced through the group’s “Nxtra” entity rather than Hexacom directly.

Company-Specific & Strategic Commentary

• FWA & Wi-Fi Strategy: Management is prioritizing “Home Wi-Fi” as the core product, using Fiber as the gold standard and FWA as the primary accelerator in low-fiber-density areas. FWA is significantly expanding the addressable market in Rajasthan and Northeast where fixed-line infrastructure is sparse.
• Portfolio Premiumization: In the absence of immediate tariff repair, growth is being “sweated” through data monetization and 5G upgrades. 5G standalone (SA) has been rolled out for FWA customers to provide superior uplink speeds.
• War on Waste: Ongoing digital tool deployment and AI-led site optimization helped manage costs; consolidated site running costs have declined by 6% over the last four years despite network expansion.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Revenue Growth Underperformance

• Question: Why is Hexacom’s mobile revenue growth lagging behind Bharti Airtel’s national average? (Sanjesh Jain)
• Answer: Performance was colored by specific technical interference issues with a partner and a high base; however, underlying growth is trending with the national average (Soumen Ray).

FWA vs. UBR Technology

• Question: Will Hexacom use Unlicensed Band Radio (UBR) more aggressively given the lower interference in these circles? (Gaurav Malhotra)
• Answer: Fiber and FWA remain the priority. UBR will only be used as a “least best” option in areas with high Wi-Fi demand but low 5G handset penetration (Soumen Ray).

Capital Allocation

• Question: With a Net Debt/EBITDA below 1x, will the company consider a special dividend or inorganic moves? (Vivekanand Subbaraman)
• Answer: The strong balance sheet allows for aggressive investment in growth areas like Homes and FWA expansion. The Board will evaluate the best use of cash as the “Homes” journey has just started (Soumen Ray).

5G Monetization

• Question: Is there a plan for differentiated pricing between 4G and 5G? (Sanjesh Jain)
• Answer: Management prefers a “pay more for more” architecture rather than technology-specific pricing to avoid customer confusion, though global 5G capabilities like network slicing are being tested (Shashwat Sharma).

Key Takeaway

Bharti Hexacom delivered a steady third quarter, characterized by a 1.8% sequential revenue growth and a record 73,000 net additions in its Homes segment. While mobile revenue saw a slight drag due to localized technical interferences, the company successfully maintained a robust ARPU of ₹253 and significantly deleveraged its balance sheet to a Net Debt/EBITDA ratio of less than 1x. Strategic focus remains heavily tilted toward “Home Wi-Fi” adoption via Fixed Wireless Access (FWA) to overcome geographical barriers in Rajasthan and the Northeast. Management indicated that while radio capex is peaking, investments will pivot toward transport resiliency and home broadband to capture a 30-35% household penetration target. Moving forward, the company is well-positioned to leverage its superior capital structure for aggressive market share gains in the broadband space while awaiting industry-wide tariff normalization.