Breaking Down Bharti Hexacom Limited Financial Health: Key Insights for Investors

From its start as Hexacom India Limited in 1995 to becoming a Bharti Airtel subsidiary, Bharti Hexacom has rapidly scaled its footprint-having invested ₹206 billion in digital infrastructure by December 31, 2023, serving 27.1 million customers across 486 census towns then and reaching 28 million customers by March 31, 2025; the company's April 2024 IPO (priced ₹542-₹570 with a Grey Market Premium of ₹47 on April 2, 2024) raised up to ₹4,275 crore via an Offer for Sale, while a distribution network of 616 distributors and 89,454 retail touchpoints supports its two main segments-Mobile Services (2G/4G/5G) and Home & Office Services (up to 1 Gbps) -backed by partners like Ericsson, Nokia and Google; operational metrics show momentum with mobile data consumption up 27.0% YoY in Q2 FY26, Home & Office revenues up 46.9% YoY in Q2 FY26, ARPU rising to ₹251 in Q2 FY26 and net income jumping 66.4% YoY in Q2 FY26, while sustainability efforts delivered 48% green sites and 1,732 solar-enabled locations by March 31, 2025, positioning the company to deepen digital access in Rajasthan and the North East and to monetize growth through premium services like Airtel Black and expanded fiber reach.

Bharti Hexacom Limited (BHARTIHEXA.NS): Intro

• Incorporated in 1995 as Hexacom India Limited to provide fixed-line telephone and broadband services in Rajasthan and the North East regions of India.
• Acquired by Bharti Airtel Limited in December 2004, integrating operations with one of India's largest telecom players and enhancing reach and capabilities.
• By December 31, 2023, Bharti Hexacom had invested ₹206 billion in digital infrastructure, reflecting large-scale capital deployment into network, towers, fiber and related assets.
• Served 27.1 million customers across 486 census towns as of December 31, 2023.
• Launched an Initial Public Offering in April 2024, offering up to ₹4,275 crore in shares as part of its strategic financial growth.
• Expanded to 28.0 million customers by March 31, 2025, underscoring continued subscriber growth and market penetration.

• Majority-held subsidiary of Bharti Airtel Limited following the 2004 acquisition; operates as the fixed-line and broadband arm in specific regional clusters.
• Post-IPO (April 2024), a portion of equity was offered to public investors-raising institutional and retail participation while Bharti Airtel retained controlling interest.

• Mission: Expand affordable, high-quality fixed broadband and digital infrastructure to under-served urban and semi-urban markets in India.
• Strategic priorities: Massive fiber build-out, tower and site consolidation, enterprise connectivity services, and improving last-mile broadband penetration in census towns.

• Network assets: Fiber-optic backbone, last-mile connections, and fixed wireless where fiber penetration is limited.
• Service offerings: Residential broadband, enterprise leased lines, MPLS/VPN, and value-added digital services (IPTV, VoIP, managed services).
• Distribution: Direct retail, channel partners, and enterprise sales teams across 486 census towns (Dec 31, 2023).
• Integration with Bharti Airtel: Leverages Airtel's spectrum, brand, and national backbone for service continuity and bundled offerings.

• Subscription fees: Recurring monthly/annual charges from residential and enterprise broadband customers (primary revenue source).
• Enterprise contracts: Higher-margin leased lines, managed services, and network solutions for businesses and institutions.
• Infrastructure monetization: Tower and fiber co-location, dark fiber leasing to other operators, and wholesale access.
• Value-added services: IPTV, OTT partnerships, IoT connectivity bundles and enterprise cloud connectivity.

Bharti Hexacom Limited (BHARTIHEXA.NS): History

• Founded as an operational arm aligned with Bharti Airtel's network needs; later structured for independent listing to unlock value and provide transparency to external investors.
• IPO launched in April 2024 as an Offer for Sale (OFS) with proceeds directed to Telecommunications Consultants India Limited (TCIL), preserving Bharti Airtel's majority ownership.

• Majority owner: Bharti Airtel Limited (holds the controlling stake).
• Sole public seller in IPO: Telecommunications Consultants India Limited (TCIL) - all OFS proceeds went to TCIL, not to Bharti Airtel.
• Post-IPO public float: shares listed on NSE and BSE, providing market liquidity and price discovery.

• Support scalable, reliable telecom infrastructure to enable connectivity across urban and rural India.
• Provide efficient deployment and maintenance of passive infrastructure to reduce operating costs for operators and accelerate network rollouts.

• Owns and operates passive telecom infrastructure and supports network deployment for Bharti Airtel and other partners.
• Manages a distributor/retailer ecosystem to provide field services, spare parts, and last-mile operational support to mobile network operators and service providers.

• Infrastructure leasing/rental: recurring revenue from leasing passive infrastructure (towers, sites) and related services to telecom operators.
• Installation & maintenance services: fees from network rollout, site installation, power, and upkeep contracts.
• Value-added services through distribution network: sale of equipment, spares, and on-ground services via 616 distributors and 89,454 retail touchpoints (Dec 31, 2023).

Bharti Hexacom Limited (BHARTIHEXA.NS): Ownership Structure

• Strategic focus regions: Rajasthan and the North East (primary network expansion corridors).
• Group integration: Uses Bharti Airtel's digital tools, billing and operational platforms to drive efficiency and product bundling.
• Governance: Board and disclosures aligned to group standards to ensure transparency and ethical conduct.

• Digital inclusion: Committed to enhancing digital connectivity in underserved regions to bridge the digital divide.
• Customer-centric innovation: Offers bundled and converged services (e.g., Airtel Black-style combinations of mobility, Wi‑Fi, DTH/digital TV and OTT) to deliver seamless digital experiences.
• Sustainability: Targets expanding solar energy access to 1,732 sites and achieving 48% green sites by March 31, 2025; active programs to optimize diesel consumption and reduce carbon footprint.
• Operational excellence: Continuous investment in network expansion, spectrum judiciousness, and technology upgrades to improve QoS and customer satisfaction.
• Governance & transparency: High standards of compliance, reporting and ethical business practices.
• Culture of innovation: Leverages Bharti Airtel's cutting‑edge digital tools to enhance operational efficiency and customer experience.

• Core services: Mobile voice and data for prepaid/postpaid subscribers in regional circles; enterprise data and connectivity for local businesses; managed services and tower/infra sharing.
• Bundling and ARPU improvement: Cross-selling of broadband, Wi‑Fi, OTT and DTH through bundled offerings (Airtel Black-style) to increase Average Revenue Per User (ARPU) and reduce churn.
• Infrastructure monetization: Tower site sharing, passive infra leasing and co-location yield recurring non-ARPU revenue streams while lowering per-subscriber capital intensity.
• Cost optimization: Renewable energy (1,732 solar-enabled sites) and diesel optimization programs target OPEX reduction and improved EBITDA margins.

• Network rollout speed (sites added per quarter) and coverage in rural/underserved blocks.
• Subscriber ARPU uplift via bundling and value-added services.
• Energy mix shift: percentage of sites powered by renewable sources (target 48% by 31‑Mar‑2025).
• OPEX reduction from diesel consumption optimization and shared infrastructure revenue.
• Governance KPIs: regulatory compliance, audit transparency and stakeholder disclosures.

Bharti Hexacom Limited (BHARTIHEXA.NS): Mission and Values

• Mobile Services - Provides wireless voice and data using 2G, 4G and deployed 5G technologies where available; supports intra-city fiber backbone to ensure backhaul capacity and high-speed connectivity for mobile users.
• Home and Office Services - Offers fixed-line telephony and broadband internet (including FTTH where deployed) with plans and technical capability to deliver speeds up to 1 Gbps for residential and enterprise customers.

• Distribution network: 616 authorised distributors supporting last-mile reach.
• Retail presence: 89,454 retail touchpoints (franchise stores, local retailers and experience centres) to sell products, recharge, and provide customer support.

• Radio Access Network and core suppliers: Ericsson, Nokia, and Ceragon for RAN, microwave and transport solutions.
• Cloud, automation and big-data partners: collaborations that include Google for cloud/AI enablement and platform tools.
• Security & customer experience: adoption of Bharti Airtel's AI-powered anti-SPAM and fraud-detection tools to reduce unwanted calls and enhance subscriber trust.

• Postpaid and prepaid mobile subscriptions - recurring voice and data ARPU-driven revenue.
• Fixed broadband subscriptions - monthly fees for DSL/FTTH plans including tiered speed packages up to 1 Gbps.
• Value-added services - VoIP, broadband OTT tie-ups, enterprise connectivity, leased lines and managed services for SMEs.
• Wholesale and infrastructure leasing - intra-city fiber/backhaul capacity and tower site services to other operators or affiliates.
• Device sales and distribution commissions - revenue from handset and broadband device sales across its distributor and retail network.

• Extensive on-ground distribution and retail footprint enabling rapid customer acquisition and local service delivery.
• Partnership-driven technology stack that accelerates 5G rollout and fiber expansion while controlling capital intensity through vendor relationships.
• Integration of Airtel-grade AI/security tools improves ARPU retention by reducing churn and improving user trust.

Bharti Hexacom Limited (BHARTIHEXA.NS): How It Works

• Founded as part of the Bharti group's consumer and enterprise telecom initiatives, Bharti Hexacom evolved to offer integrated mobile and fixed-line services across India.
• Mission: deliver high-quality, widely available connectivity and converged digital services that increase customer lifetime value through superior network performance and bundled offerings.

• Network operations: operates mobile radio access and fixed broadband infrastructure supported by ongoing spectrum and site investments to improve coverage and capacity.
• Product delivery: sells prepaid/postpaid mobile plans, broadband and fixed-line services, and packaged offerings (cross-sell bundles and premium plans) through retail stores, digital channels and a large distribution network.
• Customer management: focuses on retention and ARPU uplift via value-added services, loyalty plans (e.g., Airtel Black-style bundled offerings), and targeted enterprise solutions.

• Mobile services: primary revenue source from voice and data plans; growing mobile data consumption drives incremental revenue.
• Home and Office Services: fixed-line telephone and broadband subscriptions that contribute both steady recurring revenue and higher-margin add-ons.
• Premium offerings & ARPU uplift: investments in network quality and bundled premium services raise Average Revenue Per User.
• Distribution scale: extensive distribution and a large subscriber base enable higher sales penetration and upsell conversion rates.
• Capital investments: proceeds from capital markets (IPO) used to expand capacity and products, supporting future revenue growth.

• Retail mobile subscriptions (prepaid & postpaid): recurring voice and data billing, VAS add-ons, roaming and international calling.
• Fixed broadband & voice: monthly broadband plans, installation and equipment fees, enterprise fixed-line contracts.
• Bundled and premium plans: cross-sell bundles (mobile + broadband + content), family/enterprise bundles raising ARPU and stickiness.
• Distribution and channel sales: commissions and strategic partnerships to widen market reach across urban and rural segments.
• Capital-driven expansion: IPO capital allocated to network upgrades and market expansion to support higher revenue throughput.

Bharti Hexacom Limited (BHARTIHEXA.NS): How It Makes Money

• Retail mobile services: prepaid/postpaid voice and data subscriptions across Rajasthan and North East.
• Wholesale & roaming: VLR-driven inbound roaming and interconnect revenue-strong in the North East where it leads in VLR customers.
• Enterprise services: leased lines, MPLS/IP VPN, and managed services for local businesses and government.
• Network infrastructure monetization: site/co-location leasing, passive infrastructure services, and IRU/IP capacity sales.
• Value-added services: OTT partnerships, digital billing, and platform monetization.

• Leading presence in the North East with the highest number of VLR customers among regional operators, providing steady wholesale and roaming revenue.
• Improved market share in Rajasthan by 5 percentage points between FY 2021-22 and FY 2024-25, reflecting subscriber gains and ARPU stabilization.
• Strategic network expansion and technology upgrades (4G/4.5G and fiber densification) align the company to capture growing demand for high-speed internet and digital services.
• Sustainability commitment-48% green sites as of March 31, 2025-reduces operating costs and enhances brand and regulatory positioning.
• Strong recent profitability: 66.4% year-on-year increase in net income in Q2 FY26, signaling improved operating efficiency and margin recovery.

• Ongoing investments in fiber, spectrum efficiency, and site greenification are expected to drive ARPU growth and reduce opex intensity.
• Strategic initiatives-network densification, enterprise focus, and sustainability-support a positive medium-term outlook and potential market share expansion.