Bharti Hexacom
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Bharti Hexacom's recent operational performance reflects a strong commitment to growth, particularly in its Home Broadband segment and 5G densification efforts. Management's focus on strategic capital allocation and risk management is expected to enhance revenue growth and maintain stable margins, despite facing short-term challenges such as rising costs and competitive pricing pressures. The anticipated 15% tariff hike in 3QFY27 is a significant catalyst that supports Vista's forecast of stable revenue growth and a favorable long-term outlook. Additionally, the company's disciplined approach to governance and proactive stakeholder engagement positions it well to navigate the competitive landscape. While the telecom infrastructure industry is experiencing expansion, Bharti Hexacom's ability to optimize operations and innovate will be crucial in sustaining profitability. Over the next 12-24 months, key opportunities include capturing market share in the Home Broadband segment and leveraging its improved balance sheet, while watchpoints include potential impacts from rising costs and competitive pricing dynamics. Vista's financial outlook remains robust, with an expected upside of 31% and a target price reflecting continued long-term growth potential
Why We Like This Stock
- Management's commitment to 5G densification and Home Broadband expansion is expected to drive revenue growth
- The anticipated tariff hike in 3QFY27 will support margin stability and enhance profitability
- A disciplined approach to capital allocation and risk management positions the company favorably against competitors
Things To Watch Out For
- Rising costs associated with FWA deployments and smartphone upgrades may pressure revenue growth
- Competitive pricing dynamics in the telecom sector could impact ARPU growth and margins
- Potential volatility in energy prices poses a risk to operational costs and profitability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,089 | 8,548 | 9,354 | 9,734 | 10,663 |
| Profit Before Tax (Cr.) | 1,184 | 1,582 | 2,300 | 3,239 | 3,477 |
| PBT Margin | 16.7% | 18.5% | 2458.8% | 33.3% | 32.6% |
| Net Profit (Cr.) | 525 | 1,144 | 1,750 | 2,449 | 2,629 |
| Earnings Per Share | 10.5 | 22.9 | 35.0 | 49.0 | 52.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ► Neutral | 1,710 | 05-Aug-2026 |
| Jeffries | ▲ Buy | 2,060 | 14-May-2026 |
| Motilal Oswal | ▲ Buy | 2,050 | 06-Aug-2026 |
Company Overview
Show Company Profile
Bharti Hexacom Limited provides mobile services, fixed-line telephone, and broadband services to end consumers under the Airtel brand in India. It operates through Mobile Services and Home and Office Services segments. The Mobile Services segment provides voice and data telecom services through wireless technology comprising 2G, 4G, and 5G networks; and offers intra-city fiber networks. The Home and Office Services segment offers voice and data communications through fixed-line network and broadband technology for homes and offices. It also offers subscriptions for voice, data, messaging, and interconnection/roaming services, as well as other added value services. In addition, the company provides Airtel Black, a solution for households that combines mobility, Wi-Fi, digital TV, and OTT. The company was formerly known as Hexacom India Limited and changed its name to Bharti Hexacom Limited in December 2004. The company was incorporated in 1995 and is based in New Delhi, India. Bharti Hexacom Limited is a subsidiary of Bharti Airtel Limited.