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Informist, Tuesday, Aug. 5, 2025

By Arya S. Biju

MUMBAI – Bharti Hexacom Ltd. reported a muted earnings for the June quarter with both top line and bottom line falling sequentially despite higher data consumption and improvement in mobile average revenue per user. The company's bottom line for the reporting quarter was dragged down by higher tax expenses, which more than tripled on quarter to INR 1.35 billion. The company reported its second-biggest sequential fall in net profit since its shares debuted in the stock market in April 2024. 

The telecommunication company's net profit for Apr-Jun fell over 16% on quarter and over 23% on year to INR 3.92 billion. This was below the INR 4.14 billion net profit estimated by both JM Financial Institutional Securities Pvt. Ltd. and Motilal Oswal Financial Services Ltd. Its net sales for the quarter fell just over 1% sequentially, but rose over 18% on year to INR 22.63 billion. This was also lower than the INR 23.54 billion net sales estimated by JM Financial and INR 23.44 billion estimated by Motilal Oswal. There was only two estimates available with Informist for the company's June quarter earnings. 

The company, in which Bharti Airtel Ltd. holds a majority stake, provides consumer mobile services, fixed-line telephone, and broadband services in Rajasthan and north-eastern states including Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Arunachal Pradesh.  

The company incurred a tax expense of INR 1.35 billion, a threefold increase from INR 448 million reported in the March quarter and over double the INR 656 million reported in the year-ago quarter. However, the company's total expenses fell 2% on quarter to INR 17.84 billion, led by a near 34% sequential fall in access charges and a near 1% fall in depreciation and amortisation expenses. The depreciation and amortisation expenses, which accounted for 30% of the total costs of the company, fell to INR 5.27 billion and its expenses related to access charges, which accounted for 9% of total costs, fell to INR 1.63 billion. On the other hand, its network operating expenses rose nearly 10% on quarter to INR 5.22 billion. 

The company's overall earnings before interest, tax, depreciation, and amortisation, or EBITDA for the quarter rose over 33% on year to INR 12.17 billion, but fell slightly from the INR 12.20 billion reported in the previous quarter. The company's EBITDA margin improved to 53.8% from 53.3% in the previous quarter and 47.7% in the year-ago quarter. The company's EBITDA margin for the quarter was supported by operating leverage and cost reduction associated with its cost-optimisation initiative, the War on Waste program. 

Its overall earnings before interest and tax for the reporting quarter remained unchanged sequentially but rose nearly 63% on year to INR 6.77 billion. Its EBIT margin for the quarter improved 30 basis points sequentially to 29.9%. During the quarter, the company spent INR 2.27 billion on capital expenditure, down 29% on year. 

Revenues from the company's mobile services rose 18% on year but fell 1.5% on quarter to INR 21.92 billion. The on-year increase in sales from the segment was driven by tariff repair and a focus on premiumisation of the portfolio. The company's mobile average revenue per user grew to INR 246 during the quarter from INR 205 in the year-ago quarter and INR 242 in the previous quarter. Its data usage per customer increased to 29.4 gigabytes per month from 27.7 gigabytes per month in the previous quarter and 25.7 gigabytes per month from the year-ago quarter. 

Revenue from homes and office services segment rose 38% on year and over 10% on quarter to INR 784 million in Apr-Jun. "This performance reflects the company's strategic focus of expanding coverage into new cities and deepening its presence in existing markets," Bharti Hexacon said in an earnings highlight note. Its home services' average revenue per user declined over 1% on quarter and nearly 6% on year to INR 485. 

As of Jun. 30, the company's mobile services customer base was 28.15 million, up from 28.13 million in the previous quarter and 27.60 million in the year-ago quarter. Its home services customer base was 502,000 as of Jun. 30, up 12% on quarter and over 56% on year. The total customer base of the company was 28.65 million as on Jun. 30, up from 28.58 million in the previous quarter and 27.92 million in the year-ago quarter.  

As of Jun. 30, the company had 26,490 mobile network towers, down from 26,497 in the previous quarter but up from 25,972 in the year-ago quarter. It had 81,874 mobile broadband stations as of Jun. 30, up from 81,840 at the end of the previous quarter and 80,500 from the year-ago quarter. 

The company announced its June quarter earnings post-market hours Tuesday. Shares of the company closed 0.6% lower at INR 1,847.30 on the National Stock Exchange.  End 

Edited by Tanima Banerjee

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