Bharti Hexacom (BHARTIHEXA) Q2 FY27 Profit Surges 34% as Margins Expand and Debt Falls
The telecom operator's Q2 FY27 profit rose to ₹566 crore, driven by higher ARPU, a booming homes segment, and lower interest costs.
Bharti Hexacom posted a 34.4% year-on-year jump in net profit for Q2 FY27. Revenue grew 11.4%, supported by mobile ARPU gains and a 49% surge in homes and office services, while net debt fell sharply.
For Bharti Hexacom, the September quarter was about turning subscriber connections into stronger earnings. The regional telecom operator delivered a sharp 34% profit rise, showing it can grow its top line and keep more of it.
The numbers tell a clear story of expansion. Revenue reached ₹2,582 crore, up 11.4% from a year ago. Profit climbed even faster to ₹566 crore. The net profit margin widened to 21.9%, a gain of 370 basis points year-on-year.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 2,581.8YoY +11% | 2,509.9 | 2,317.3 |
| Profit (₹ Cr) | 566.1YoY +34% | 482.4 | 421.2 |
| Net Profit Margin (%) | 21.9YoY +20% | 19.2 | 18.2 |
Why Profit Outpaced Revenue
Growth came from both sides of the business. Mobile services revenue grew nearly 10%, with average revenue per user (ARPU) rising to ₹264, according to the Freepress Journal. The real spark was the homes and office segment, where revenue surged 49% year-on-year.
This revenue momentum met disciplined spending. Operating leverage kicked in as the company scaled its subscriber base, reports MarketsMojo. Interest costs fell 7.5% from last year, and a lower tax rate provided an extra lift. The result was a record quarterly operating profit.
The Balance Sheet Tightens
Strong cash generation is funding a cleaner balance sheet. Bharti Hexacom generated ₹1,162 crore in operating cash flow this quarter, notes Multibagg.ai. It used that strength to pay a ₹900 crore dividend and still cut debt.
Net debt excluding lease obligations fell 44% from a year ago to ₹1,575.5 crore. This deleveraging, despite the large payout, shows the underlying financial health. The annualised net debt-to-EBITDA ratio improved to 0.87 times.
The Outlook Hinges on Pricing
The immediate future rests on sustaining ARPU growth. Management, on the earnings call, cited significant headroom from plan upgrades and postpaid additions. The industry expects another 12-15% tariff hike in the next few months, reports Centrum Institutional Research.
Capital expenditure remains focused on 5G densification and scaling the homes business, as per DSIJ Insights. With debt down and cash flow strong, the company is positioned to invest without straining its finances.
Key Points
- Net profit jumped 34.4% year-on-year to ₹566 crore, far outpacing 11.4% revenue growth on the back of operating leverage and lower interest costs.
- The homes and office services segment was the star performer, with revenue surging 49% and helping diversify beyond mobile.
- The company sharply reduced net debt by 44% year-on-year to ₹1,575.5 crore, even after paying a ₹900 crore dividend, supported by robust operating cash flow.
- Mobile ARPU rose to ₹264, with management seeing further headroom for growth through tariff increases and customer upgrades.
Hexa Perspective
The quarter confirms Bharti Hexacom’s operational strength in its two circles. Profit growth is being driven by real pricing power and segment diversification, not just cost cuts. The sharp debt reduction adds financial flexibility.
The premium valuation—trading at 46 times trailing earnings per MarketsMojo—reflects this quality but leaves little room for error. The investment case now hinges entirely on the company's ability to keep raising ARPU and on the homes segment maintaining its explosive growth trajectory. Any stumble on either front could pressure the rich multiples.
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