Bharti Hexacom stock hits new high, zooms 58% from April low; here's why

The stock price of this telecom services provider quoted higher for the seventh straight trading day, surging 16 per cent during this period.

Share price of Bharti Hexacom today

 

Shares of Bharti Hexacom hit a new high of ₹1,933.45, as they rallied 4.5 per cent on the BSE in Tuesday’s intra-day trade in an otherwise weak market on a healthy business outlook. 

 

The stock price of telecom services provider was quoting higher for the seventh straight trading day, surging 16 per cent during this period. It has bounced back 58 per cent from its three-month low of ₹1,225 touched on April 7, 2025.

 

At 10:22 AM; Bharti Hexacom was quoting 3 per cent higher at ₹1,908.35, as compared to 0.07 per cent rise in the BSE Sensex.

 

Bharti Hexacom’s Q4 results

 

In the January to March 2025 quarter, the company’s consolidated revenues came in at ₹47,876 crore and this was impacted by a decline in B2B segment, which was in line with what the company guided last quarter to focus on quality revenues. India revenues, excluding Indus, came in at ₹33,100 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) margins came in at 50.7 per cent, this is an improvement of 1.4 per cent. The company said it prepaid another tranche of high cost Department of Telecommunications (DoT) spectrum debt of ₹5,985 crore. 

 

Healthy business outlook

 

Analysts expect Bharti Hexacom’s Ebitda margin to further improve, driven by strong average revenue per user (ARPU) growth on account of tariff hikes, Bharti’s premiumisation strategy and cost optimisation via its ‘war on waste’ initiative. 

 

Analysts at JM Financial Institutional Securities believe India's wireless business tariff hikes are likely to be more frequent, going forward, given the consolidated industry structure and higher ARPU requirement for Jio also to justify significant 5G capex and given Jio’s potential IPO. 

 

ARPU growth aided by likely moderation in capex will continue to drive Bharti Heaxacom’s FCF growth, enabling it to get to net cash by FY29; this will also aid in accretion in equity value. The brokerage firm sees Bharti Hexacom as a midcap pure-play on the structural wireless ARPU growth story. 

 

Bharti Hexacom provides a pure-play exposure to Bharti Airtel’s fast-growing India wireless and home broadband segments. Given the relatively lower penetration of mobile and fixed broadband in Bharti Hexacom’s circles, its growth prospects are slightly better than Airtel's.

 

Given lower teledensity and lower internet penetration in Hexacom circles (vs. pan-India), analysts believe Hexacom can potentially grow a few percentage points faster than Airtel on both subscribers and ARPU. Further, with significantly lower penetration of fixed broadband in Hexacom’s circles and the recent ramp-up of Fixed Wireless Access (FWA) offerings, analysts believe Hexacom’s wired broadband business could also grow at a faster clip.

 

Motilal Oswal Financial Services believes Bharti Hexacom should command a premium to Airtel, given its slightly higher growth, better RoCEs, and lower capital misallocation concerns, and ascribe a DCF-based Jun’27E EV/EBITDA of 14.5x to Bharti Hexacom. However, currently, the stock is trading above brokerage firm’s target price of ₹1,900 per share.

 

About Bharti Hexacom

 

Bharti Hexacom is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India, which comprises the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. It offers services under the brand ‘Airtel’. Airtel is a global communications solutions provider with over 550 million customers in 17 countries across South Asia and Africa.

 

Bharti Airtel is the promoter of Bharti Hexacom and holds 70 per cent stake; government-owned Telecommunications Consultants India Limited (TCIL’s) stake is now down to 15 per cent while public investors own 15 per cent post-IPO.