Bharti Hexacom shares gain on Q4 results; margins, ARPU steady

Shares of Bharti Hexacom Ltd. are trading over 1% higher on Thursday, May 14, after the telecom operator reported a steady set of earnings for the March quarter.Revenue for Q4FY26 rose 2.3% sequentially and 5.4% year-on-year, while EBITDA margin remained largely stable at 54.4% compared to 54.3% in the previous quarter.

Average revenue per user (ARPU) stood at ₹252, marginally lower than ₹253 in the December quarter.
Profit after tax declined 5.6% quarter-on-quarter and 4.7% year-on-year due to higher other expenses and slightly elevated exceptional losses.The board also declared a final dividend of ₹18 per share.

Earlier in March, brokerage firm Jefferies maintained a ‘Buy’ rating on the stock with a target price of ₹1,880, valuing the company at 14 times EV/EBITDA.Jefferies said Bharti Hexacom remains among the best plays on India’s telecom tariff repair story.

In its bullish scenario, the brokerage sees the stock rising to ₹2,510, assuming cumulative tariff hikes of 30% across FY27 and FY28. In a downside case, the stock could decline to ₹1,270 if tariff hikes do not materialise.

The brokerage, however, expects a lower probability of a headline tariff hike by June 2026, citing inflationary risks linked to the ongoing Middle East crisis.

Factoring in these concerns, Jefferies has assumed a single 15% tariff hike in December 2026 and trimmed its FY27 and FY28 earnings estimates by 4-5%.

Bharti Hexacom shares ended 1.79% higher at ₹1,491 on Wednesday. The stock has declined 18% so far this year.