Bharti Hexacom Limited (BHARTIHEXA) AI Stock Analysis

• Market Cap: ₹787.17B
• Dividend Yield: 0.78%
• Average Volume (3M): 11.30K
• Price to Earnings (P/E): 48.1
• Beta (1Y): 0.99
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 424
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 9.50
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 6,014
• 30 Day Avg. Volume: 11,299
• PEG Ratio: 0.25
• Price to Book (P/B): 12.39
• Price to Sales (P/S): 8.60
• P/FCF Ratio: 23.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 35.49
• Revenue Forecast (FY): ₹93.95B

• Rating: 64 Neutral
• Price Target: ₹1,638.00 ▼(-8.08% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven primarily by strong financial recovery and solid free-cash-flow generation alongside improving leverage. This is tempered by a mixed-to-weak medium-term technical trend (negative MACD and trading below key longer-term moving averages) and a high P/E with limited dividend support.

Positive Factors

Revenue growth and profitable turnaround

A sharp revenue rebound and return to sustained profitability signal structural recovery in core mobile services. This supports scale economics, stronger cash generation and reinvestment capacity over the next 2–6 months, reducing existential risk from prior loss years.

High margins indicating operational strength

Elevated gross and EBITDA margins point to pricing power, efficient network operations and favourable cost structure. Such margin levels create durable cash flow buffers that help absorb cyclical pressures and fund capex or debt reduction over the medium term.

Strong free cash flow and improving leverage

Material free-cash-flow generation combined with falling leverage strengthens financial flexibility. Higher FCF supports capex, deleveraging and potential strategic investments, reducing refinancing pressure and improving resilience across a 2–6 month horizon.

Negative Factors

Sizable absolute debt load

A large nominal debt stock keeps the business sensitive to interest-rate moves and funding costs. Even with improved ratios, ongoing capex and telecom investment needs mean refinancing and interest burden remain material risks to cash flow sustainability.

Cash-conversion / working-capital friction

Operating profits not fully converting to cash indicates working-capital strain or timing gaps. This undermines the reliability of reported earnings as a source of funds, constraining near-term debt paydown, capex funding and predictable free-cash-flow availability.

Volatile earnings history and margin swings

Past loss years and material year-to-year swings highlight earnings sensitivity to non-recurring items, costs or finance effects. This historical volatility raises forecasting uncertainty and could limit strategic planning or raise stakeholder caution over the medium term.

Bharti Hexacom Limited Business Overview & Revenue Model

Company Description

Bharti Hexacom Limited provides consumer mobile services, fixed-line telephone, and broadband services under the Airtel brand in India. The company offers pre-paid and post-paid wireless voice services, data communication services, and international roaming of voice and data services. It also provides fixed-line telephone and broadband services; and Airtel Black, a solution for households that combines mobility, broadband, fixed line, and digital TV 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.

How the Company Makes Money

Bharti Hexacom primarily makes money by providing mobile telecom services to customers in its operating circles. Its core revenue stream is service revenue from wireless subscribers, which includes: (1) prepaid revenue generated when customers purchase talk-time/data packs and other bundled plans, recognized as services are used; (2) postpaid revenue billed periodically based on subscribed plans and usage; and (3) data/Internet service revenue driven by mobile broadband consumption (4G/5G where available) and plan upgrades. The company also earns interconnect/termination and roaming-related revenues arising from calls and data usage involving other telecom networks, subject to prevailing industry arrangements and regulations. Additional earnings can come from value-added and digital services bundled with mobile plans (where offered), along with revenue from enterprise mobility/solutions sold to business customers. A significant factor supporting monetization is the use of the Airtel brand, distribution ecosystem, and network capabilities associated with the broader Bharti Airtel group; however, specific details of intra-group agreements, revenue-sharing terms, or material partnerships are null.

Bharti Hexacom Limited Financial Statement Overview

Summary

Strong operating turnaround with very high recent revenue growth, robust profitability (TTM ~47% gross margin, ~54% EBITDA margin, ~19% net margin), and solid cash generation (TTM ~46.2B operating cash flow; ~33.4B free cash flow). Balance sheet leverage has improved markedly (debt/equity down to ~0.95x TTM), but absolute debt remains sizable and earnings/cash-flow history shows volatility and some cash-conversion friction (operating cash flow below EBIT).

Income Statement

TTM (Trailing-Twelve-Months) revenue is ~92.3B with very strong growth (about +120% vs the prior year shown), and profitability is robust with ~47% gross margin, ~54% EBITDA margin, and ~19% net margin. Annual results show a clear multi-year turnaround from losses in 2021–2022 to solid profitability in 2024–2025, with net income rising meaningfully (2024: ~5.0B to 2025: ~14.9B). The main watch-out is some volatility in margins and earnings history (loss-making years earlier and noticeable year-to-year swings), which suggests results can be influenced by non-recurring items or cost/finance pressures.

Balance Sheet

Leverage has improved materially: debt to equity declined from very high levels in 2022–2024 (roughly ~3.9x to ~2.2x) to ~1.24x in FY2025 and ~0.95x in TTM (Trailing-Twelve-Months), indicating balance-sheet repair. Equity has also grown (from ~19.9B in 2021 to ~67.2B TTM), supporting stronger capital structure. However, absolute debt remains sizable (~63.6B TTM), and leverage is still meaningful for a telecom business, leaving some sensitivity to funding costs and ongoing capex needs.

Cash Flow

Cash generation is solid: TTM (Trailing-Twelve-Months) operating cash flow is ~46.2B and free cash flow is ~33.4B, with strong free-cash-flow growth (+241% TTM). Free cash flow is healthy relative to earnings (about 72% of net income TTM), supporting reinvestment and balance-sheet flexibility. Offsetting this, operating cash flow covers only ~74% of EBIT TTM (and ~67% in FY2025), implying working-capital or cash-conversion friction. Historical free cash flow has also been volatile (negative in 2022, extremely high growth rate in 2024 off a low base).

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	92.29B	85.48B	70.89B	65.79B	54.05B	46.02B
Gross Profit	43.47B	48.05B	39.00B	33.77B	22.14B	13.91B
EBITDA	49.76B	43.79B	31.04B	28.60B	18.84B	7.45B
Net Income	17.55B	14.94B	5.04B	5.49B	16.75B	-10.34B
Balance Sheet
Total Assets	192.03B	192.51B	185.17B	182.53B	166.74B	150.03B
Cash, Cash Equivalents and Short-Term Investments	7.59B	1.11B	2.77B	19.32B	9.09B	7.40B
Total Debt	63.60B	73.53B	81.05B	91.64B	90.68B	77.48B
Total Liabilities	124.85B	133.19B	138.79B	140.43B	130.14B	130.18B
Stockholders Equity	67.18B	59.32B	46.39B	42.09B	36.60B	19.86B
Cash Flow
Free Cash Flow	33.38B	31.13B	14.88B	41.64B	-907.00M	594.00M
Operating Cash Flow	46.20B	45.83B	35.46B	51.08B	12.58B	15.17B
Investing Cash Flow	-29.36B	-23.41B	-11.55B	-20.31B	-13.82B	-8.82B
Financing Cash Flow	-16.77B	-22.65B	-24.04B	-31.11B	1.83B	-6.04B

Bharti Hexacom Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1782.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BHARTIHEXA, the sentiment is Negative. The current price of 1782 is above the 20-day moving average (MA) of 1585.14, above the 50-day MA of 1624.00, and above the 200-day MA of 1742.10, indicating a bearish trend. The MACD of -24.34 indicates Negative momentum. The RSI at 46.39 is Neutral, neither overbought nor oversold. The STOCH value of 80.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BHARTIHEXA.

Bharti Hexacom Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDUSTOWER	79 Outperform	₹1.09T	15.55	―	―	7.80%	26.53%
TATACOMM	67 Neutral	₹394.13B	35.60	―	1.39%	4.94%	49.05%
BHARTIHEXA	64 Neutral	₹787.17B	48.07	―	0.78%	―	―
BHARTIARTL	64 Neutral	₹10.24T	48.36	―	0.75%	25.17%	212.83%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RAILTEL	60 Neutral	₹81.28B	47.77	―	0.79%	29.92%	22.87%
IDEA	45 Neutral	₹943.67B	-3.48	―	―	3.81%	39.18%

Bharti Hexacom Limited Corporate Events

Bharti Hexacom to Appoint S.R. Batliboi & Associates as New Statutory Auditor

Bharti Hexacom has announced a planned change in its statutory auditors, with Deloitte Haskins & Sells LLP set to retire at the conclusion of the company’s 32nd Annual General Meeting in 2027, upon completion of its second consecutive term. Following a selection process overseen by the Audit Committee, the board has approved the appointment of S.R. Batliboi & Associates LLP as the next statutory auditors from the end of that AGM, subject to shareholder approval, signaling continuity in audit oversight and adherence to regulatory requirements for listed companies.

Bharti Hexacom Announces Resignation of Senior Management Executive

Bharti Hexacom Limited has announced that Vinod Bhattar, Circle Head – Commercial, NESA, has resigned and will cease to be part of the company’s senior management with effect from the close of business on March 12, 2026. The company has made this disclosure in line with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, indicating a change in senior management but without specifying any broader strategic or operational implications for stakeholders at this stage.

Bharti Hexacom to Join Bharti Airtel Earnings Webinar on Q3 FY2025 Results

Bharti Hexacom Limited has announced that it will participate in a joint earnings webinar with Bharti Airtel Limited on February 6, 2026, to discuss its audited financial results for the third quarter and nine months ended December 31, 2025. The call, to be conducted via Zoom with a dedicated Q&A segment for Bharti Hexacom investors, underlines the company’s efforts to maintain transparent communication with shareholders, with recordings and transcripts to be made available on its website after the event.

Bharti Hexacom Names New CFO, Updates Market-Disclosure Key Personnel

Bharti Hexacom Limited has updated the list of its key managerial personnel responsible for determining material events and disclosures to stock exchanges, following the appointment of Karthikeyan Velu as Chief Financial Officer effective 1 January 2026. The change formalizes Velu’s role in overseeing financial matters and regulatory disclosures alongside Company Secretary and Compliance Officer Amit Chaturvedi, underscoring the company’s focus on governance, transparency and adherence to SEBI’s listing and disclosure norms as it navigates public market scrutiny.