Bharti Hexacom margin rises as revenue growth outpaces costs
Net profit grew +23.19% year on year, while other income accounted for 11.04% of pre-tax profit.
Filed 04 Aug 2026, 16:10 IST · after market close · Bharti Hexacom Ltd (BHARTIHEXA)
Key takeaways
- Standalone operating margin expanded 1.39 percentage points year on year as revenue grew +10.91%, ahead of expenses at +7.75%.
- Net profit grew +23.19% year on year despite a 0.47 percentage-point rise in the tax rate, with other income contributing 11.04% of pre-tax profit.
- Operating margin recovered to 52.68% sequentially, but remained below the 53.16% peak recorded in Q3FY26.
Price around the results
Revenue growth lifted operating profit
These standalone results show revenue growing +10.91% year on year and +3.99% sequentially. Expenses grew more slowly, at +7.75% year on year and +3.59% sequentially, allowing operating profit to rise +13.91% and +4.34%, respectively. That spread widened operating margin by 1.39 percentage points year on year and 0.18 percentage points from Q4FY26.
Other income supported pre-tax profit
Interest expense fell -3.44% year on year, but depreciation rose +12.36%, partly offsetting the operating gain below operating profit. Pre-tax profit still increased +23.96%, while net profit rose +23.19%. Other income grew +51.79% year on year and represented 11.04% of pre-tax profit; the higher tax rate, up 0.47 percentage points, means the net-profit increase was not flattered by a lower tax charge.
Margin remains well above telecom peer median
Operating margin has risen from 51.02% in Q4FY25 to 52.68% now, after reaching 53.16% in Q3FY26 and dipping to 52.50% in Q4FY26. This quarter therefore marks a sequential recovery, not a fresh peak. Among the eight telecom peers that have reported, Bharti Hexacom's margin was 33.26 percentage points above the 19.42% sector median.
Market response is still pending
The company filed the results after market close, so there is no post-results share-price reaction to assess yet. Across the past eight result reactions, the stock was up four times and down four times, with a median absolute move of 2.58%; the recent observations also include moves of +11.86% and -2.82%, indicating a mixed history rather than a consistent direction.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,510 cr | ₹2,414 cr | +3.99% | +10.91% |
| Other income | ₹72 cr | ₹53 cr | +36.04% | +51.79% |
| Expenses | ₹1,188 cr | ₹1,147 cr | +3.59% | +7.75% |
| Operating profit | ₹1,322 cr | ₹1,267 cr | +4.34% | +13.91% |
| Operating margin (%) | 52.68% | 52.50% | — | — |
| Interest | ₹149 cr | ₹149 cr | -0.27% | -3.44% |
| Depreciation | ₹593 cr | ₹565 cr | +4.90% | +12.36% |
| Profit before tax | ₹653 cr | ₹606 cr | +7.72% | +23.96% |
| Tax | ₹171 cr | ₹160 cr | +6.96% | +26.18% |
| Net profit | ₹482 cr | ₹447 cr | +7.99% | +23.19% |
| EPS (₹) | ₹9.65 | ₹8.93 | +8.06% | +23.24% |
Operating margin of 52.68% compares with a Telecommunication sector median of 19.42% across 8 peers that have reported Q1FY27.
What to watch
- Whether operating margin moves back above the 53.16% Q3FY26 peak.
- Whether expenses continue to grow more slowly than revenue, against the current year-on-year comparison of +7.75% versus +10.91%.
- Whether other income remains close to 11.04% of pre-tax profit.