Bharti Hexacom's profit fell despite higher revenue and operating profit
A higher tax rate offset pre-tax profit growth, while quarterly margin slipped as expenses grew faster than revenue.
Filed 13 May 2026, 16:37 IST · after market close · Bharti Hexacom Ltd (BHARTIHEXA)
Key takeaways
- Standalone revenue grew 5.45% year on year, while operating margin expanded 1.48 percentage points to 52.50%.
- Net profit fell 4.63% year on year despite an 18.12% rise in pre-tax profit, as the tax rate rose 17.58 percentage points to 26.31%.
- The stock gained 5.33% five sessions after the results, above its 2.82% median absolute move after the past eight results.
Price around the results
Tax increase erased operating profit growth
Bharti Hexacom reported standalone results, with revenue up 5.45% year on year and operating profit up 8.51%. Pre-tax profit rose 18.12%, helped by a 12.85% decline in interest costs, but net profit fell 4.63% as the tax rate increased 17.58 percentage points to 26.31%. Other income accounted for 8.74% of pre-tax profit, providing support but not driving the result.
Quarterly margin gave back part of its improvement
Sequentially, revenue grew 2.28% but expenses rose 3.72%, so operating margin narrowed 0.66 percentage points. This followed three quarters of improvement from 51.02% in Q4FY25 to 53.16% in Q3FY26, making the latest decline a reversal rather than a sustained downtrend. Year on year, costs still grew slower than revenue—2.26% versus 5.45%—which explains the 1.48 percentage-point annual margin expansion.
Margin remained well above reported telecom peers
Bharti Hexacom's 52.50% operating margin was 32.91 percentage points above the 19.59% median for the seven telecommunications peers that had reported the same quarter. The comparison reinforces that the quarterly margin decline was from a high base, although the sequential cost increase warrants attention.
Initial stock response was stronger than usual
The company filed the results after market close, and the stock rose 1.36% on the first trading day and 5.33% after five sessions. That five-session move was above the 2.82% median absolute reaction across the past eight results, when the stock rose four times and fell four times. The gain later reversed to a 3.32% decline after 30 sessions.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,414 cr | ₹2,360 cr | +2.28% | +5.45% |
| Other income | ₹53 cr | ₹28 cr | +86.62% | +10.88% |
| Expenses | ₹1,147 cr | ₹1,105 cr | +3.72% | +2.26% |
| Operating profit | ₹1,267 cr | ₹1,254 cr | +1.02% | +8.51% |
| Operating margin (%) | 52.50% | 53.16% | — | — |
| Interest | ₹149 cr | ₹147 cr | +1.50% | -12.85% |
| Depreciation | ₹565 cr | ₹567 cr | -0.35% | +6.33% |
| Profit before tax | ₹606 cr | ₹569 cr | +6.54% | +18.12% |
| Tax | ₹160 cr | ₹95 cr | +67.37% | +256.03% |
| Net profit | ₹447 cr | ₹474 cr | -5.70% | -4.63% |
| EPS (₹) | ₹8.93 | ₹9.47 | -5.70% | -4.70% |
Operating margin of 52.50% compares with a Telecommunication sector median of 19.59% across 7 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.36% | +0.17% |
| Next session | +4.89% | — |
| 5 sessions | +5.33% | +4.30% |
| 15 sessions | -0.60% | — |
| 30 sessions | -3.32% | — |
Volume on the results session was 1.34× its 20-day average.
What to watch
- Whether operating margin recovers from 52.50% after the 0.66 percentage-point sequential decline.
- Whether expense growth stays below revenue growth, after 3.72% sequential expense growth exceeded 2.28% revenue growth.
- Whether the tax rate moves down from 26.31% after rising 17.58 percentage points year on year.