Bharti Hexacom
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Bharti Hexacom's management has articulated a confident outlook, emphasizing a strategic focus on premiumization through 5G adoption and the expansion of its digital services, particularly in the B2B segment. The company's commitment to operational efficiency, driven by AI and a 'War on Waste' initiative, positions it well for sustainable growth despite short-term challenges such as rising chipset costs and competitive pricing pressures. Vista's financial outlook reflects stable revenue growth and margins, supported by anticipated tariff hikes and a robust balance sheet. The ongoing expansion of the Nxtra data center footprint is expected to capture increasing demand for digital infrastructure, further enhancing market share. However, the company must navigate potential headwinds from energy price volatility and the need for industry-wide pricing repair. Overall, Bharti Hexacom is well-positioned to leverage its strengths in a growing market, with a target price of approximately INR 1964 over the next 12 months, indicating an expected upside of over 31%. Key opportunities include the growth of digital services and 5G, while watchpoints include competitive pricing dynamics and rising operational costs
Why We Like This Stock
- Strong focus on 5G adoption and digital service expansion enhances revenue potential
- Operational efficiency initiatives are expected to support margin stability
- Expansion of Nxtra data centers positions the company to capture growing demand for digital infrastructure
Things To Watch Out For
- Rising chipset costs and energy price volatility may impact profitability
- Competitive pricing pressures could erode margins in the short term
- The need for industry-wide pricing repair poses risks to revenue growth
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,089 | 8,548 | 9,354 | 9,731 | 10,476 |
| Profit Before Tax (Cr.) | 1,184 | 1,582 | 2,300 | 2,517 | 2,938 |
| PBT Margin | 16.7% | 18.5% | 24.6% | 25.9% | 28.0% |
| Net Profit (Cr.) | 525 | 1,144 | 1,750 | 1,903 | 2,221 |
| Earnings Per Share | 10.5 | 22.9 | 35.0 | 38.1 | 44.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 1,885 | 06-Aug-2026 |
| Motilal Oswal | ▲ Buy | 2,050 | 06-Aug-2026 |
| Citigroup | ► Neutral | 1,710 | 05-Aug-2026 |
| HSBC | ▲ Buy | 2,050 | 22-Jul-2026 |
| Jeffries | ▲ Buy | 2,060 | 14-May-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 and internationally. It operates through Mobile Services; and Homes, Office and Other 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 communication services 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 Connectivity and digital solutions for mobility, homes, business, as well as broadband, fixed-line, IPTV services. 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.