Bharti Hexacom Limited, part of the Bharti Enterprises Group and a leading provider of telecom services including mobile, fixed-line, broadband, 2G/4G/5G networks, intra-city fiber, and digital communication solutions, is back in the spotlight after receiving mixed ratings from global brokerages CLSA and Jefferies following its June quarter results.

The stock closed at ₹1,741.75 per share, down nearly 3 percent from the previous day’s close, valuing the company at ₹87,087 crore. Over the past year, Bharti Hexacom shares have delivered an impressive gain of nearly 55 percent, despite being 15 percent below their 52-week high of ₹2,051.

Brokerage Views

  • CLSA issued an “Underperform” rating with a target price of ₹1,525, hinting at potential downside risk.

  • Jefferies, on the other hand, maintained a “Buy” recommendation, setting a target of ₹2,250 per share—indicating a possible upside of close to 30 percent.

Quarterly Highlights

For the latest quarter, Bharti Hexacom reported:

  • Revenue: ₹2,263 crore — down slightly by 1.14% quarter-on-quarter but up 18.42% year-on-year.

  • Average Revenue Per User (ARPU): ₹246 — up 2% from the previous quarter and 20% YoY, and 18% higher than Reliance Jio’s ARPU.

  • Home Broadband Growth: Added 54,000 new subscribers, taking the total base to 502,000 customers, although the segment still contributes only 3% of total revenue.

  • EBITDA: ₹1,160 crore — down 1% sequentially but up 33% year-on-year.

While revenue met Jefferies’ expectations, profitability lagged due to increased network and operating costs, leading to a slight cut in estimates. Still, Jefferies projects a strong EBITDA CAGR of 24% and FCF CAGR of 29% over FY25–28E, citing Bharti Hexacom’s superior growth compared to its parent, Bharti Airtel.

Company Overview

Incorporated in 1995 and renamed in 2004, Bharti Hexacom operates primarily in Rajasthan and Northeast telecom circles. It holds a dominant market share and offers a wide range of telecom and integrated digital services under the Airtel brand, including Airtel Black—a bundled offering of mobility, broadband, fixed-line, and digital TV services.

Financial Snapshot

  • Revenue grew from ₹1,911 crore in Q1 FY25 to ₹2,263 crore in Q1 FY26.

  • Net profit dropped from ₹511 crore to ₹392 crore over the same period.

  • ROCE: 17.4% | ROE: 25.2% | EPS: ₹27.5 | Debt-to-equity: 1.24x

Despite near-term challenges, Jefferies’ bullish stance suggests Bharti Hexacom remains a strong large-cap telecom pick for long-term investors.