Bharti Hexacom margin reaches a six-quarter high as tax rate falls
Standalone net profit rose +34.40% year on year, while the stock had not yet reacted because the results were filed after market close.
Filed 05 Nov 2026, 16:18 IST · after market close · Bharti Hexacom Ltd (BHARTIHEXA)
Key takeaways
- Standalone operating margin rose 0.66 percentage points sequentially to 53.34% as revenue grew +2.86% while expenses grew +1.43%.
- Standalone net profit grew +34.40% year on year, helped by a 6.07-percentage-point fall in the tax rate to 19.26%.
- The company’s 53.34% operating margin was 28.53 percentage points above the 24.81% median for 11 telecom peers that reported.
Price around the results
Margin expanded as costs lagged revenue growth
Bharti Hexacom reported standalone revenue growth of +11.41% year on year and +2.86% sequentially in Q2FY27. Expenses grew more slowly, at +8.61% year on year and +1.43% sequentially, lifting operating margin by 1.21 percentage points year on year and 0.66 percentage points quarter on quarter. The 53.34% margin is the highest in the six-quarter series provided.
Lower tax and interest costs amplified profit growth
Net profit rose +34.40% year on year and +17.35% sequentially, outpacing operating profit growth of +13.99% and +4.15%, respectively. The tax rate fell 6.07 percentage points year on year and 6.87 percentage points sequentially to 19.26%, which materially supported the increase in net profit. Interest expense also fell +7.49% year on year and +6.18% sequentially, while other income contributed 9.11% of profit before tax, so reported profit included a meaningful non-operating contribution.
Operating margin remains well above the telecom peer median
Bharti Hexacom’s 53.34% operating margin was 28.53 percentage points above the 24.81% median among 11 telecom companies that had reported the quarter. The margin has moved up from 51.29% in Q1FY26, though it dipped to 52.50% in Q4FY26 before recovering in the past two quarters. This makes the current improvement part of a broader upward trend, but not a continuous quarter-on-quarter rise.
No immediate market reaction after the post-close filing
The results were filed after market close, so there was no current-session stock reaction to assess. Across the eight most recent results reactions, the stock rose four times and fell four times, with a median absolute move of 2.82%. The historical record therefore points to a mixed and generally limited reaction pattern rather than a consistent direction.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,582 cr | ₹2,510 cr | +2.86% | +11.41% |
| Other income | ₹64 cr | ₹72 cr | -11.37% | +4.41% |
| Expenses | ₹1,205 cr | ₹1,188 cr | +1.43% | +8.61% |
| Operating profit | ₹1,377 cr | ₹1,322 cr | +4.15% | +13.99% |
| Operating margin (%) | 53.34% | 52.68% | — | — |
| Interest | ₹140 cr | ₹149 cr | -6.18% | -7.49% |
| Depreciation | ₹600 cr | ₹593 cr | +1.32% | +8.30% |
| Profit before tax | ₹701 cr | ₹653 cr | +7.37% | +24.29% |
| Tax | ₹135 cr | ₹171 cr | -20.87% | -5.53% |
| Net profit | ₹566 cr | ₹482 cr | +17.35% | +34.40% |
| EPS (₹) | ₹11.32 | ₹9.65 | +17.31% | +34.44% |
Operating margin of 53.34% compares with a Telecommunication sector median of 24.81% across 11 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.38% | -4.39% |
Volume on the results session was 1.37× its 20-day average.
What to watch
- Whether standalone operating margin holds above 53.34%.
- Whether the tax rate remains near 19.26% after its sequential decline of 6.87 percentage points.
- Whether interest expense continues to decline after falling +6.18% sequentially.