Mumbai: Imagine a day without the internet—no streaming the latest movies, no WhatsApp pings from friends, no emails to explain running late to the boss. Digital silence. Yet, as our lives entwine ever more with digital connectivity, Bharti Hexacom emerges as a robust architect of India’s digital future. In Q2 FY25, the telecom powerhouse posted an impressive 20.7 per cent year-on-year revenue jump, reaching Rs 20,976 million. Fueled by strategic expansions in mobile and broadband, Bharti Hexacom shows unyielding momentum. With mobile data usage surging 29.7 per cent, and bolstered by solid infrastructure investments, the company signals a steadfast commitment to enhancing the nation’s digital ecosystem.
The quarter’s revenue growth was propelled by Bharti Hexacom’s core mobile services, which registered a substantial 20 per cent year-on-year increase, reaching Rs 20,433 million. This growth trajectory was bolstered by ‘tariff repair’ initiatives and a strategic focus on acquiring quality customers, leading to an Average Revenue Per User (ARPU) increase to Rs 228, a 16.3 per cent rise from Rs 196 in Q2 FY24. Homes and Office services also saw revenue growth, up by 19.8 per cent YoY, with net customer additions reaching an impressive 30,000, marking the highest quarterly growth in this segment.
The company’s EBITDA rose by 21.8 per cent YoY to Rs 10,464 million, supported by the operational efficiency initiatives that helped to widen EBITDA margins to 49.9 per cent from 49.4 per cent last year. However, EBIT margin slightly contracted by 24 basis points to 24.3 per cent amid escalating competition and increased operational costs. Net income, a noteworthy figure, reached Rs 2,531 million—transforming a year-over-year loss into a profitable position and reflecting a robust 237 per cent growth after accounting for exceptional items.
Bharti Hexacom’s capital expenditure of Rs 4,465 million in Q2 FY25 has enabled the rollout of over 200 network towers and 407 mobile broadband stations, primarily across Rajasthan and the North East. This investment complements the recent acquisition of an additional 15 MHz spectrum, allowing for enhanced connectivity and user experience. Bharti Hexacom’s pioneering AI-driven spam detection tool—India’s first by a telecom provider—was also launched this quarter to improve customer satisfaction.
Mobile data consumption demonstrated a robust year-over-year growth of 29.7 per cent, reaching 1,524 PB, driven by a rise in smartphone users, which grew by 11.3 per cent YoY. The segment saw significant usage, with data consumption averaging 25.9 GB per user per month, reinforcing Hexacom’s position as a digital leader amid rising demand for mobile data.
The Homes and Office services unit continues its growth trajectory, expanding high-speed broadband services to 103 cities and leveraging partnerships with local cable operators to reach a wider base. This strategic extension allowed the segment to achieve a 20 per cent revenue increase year-over-year, with 30,000 new customer additions in the last quarter. ARPU for home broadband stabilised at Rs 509, a reflection of steady demand despite sectoral pricing adjustments.
The current Debt-to-EBITDA ratio, including lease impacts, stands at 2.03x, a favourable metric within the industry. Hexacom’s judicious capital allocation and a focus on cost optimisation underpin its positive cash flow, which saw a 123 per cent increase YoY, reaching Rs 5,999 million. As Bharti Hexacom prepares for further digital transformation, these metrics reflect a strong financial foundation poised for sustained growth.
Bharti Hexacom’s Q2 FY25 performance embodies a strategic blend of innovation, investment, and customer-centric expansion. By focusing on both mobile and broadband sectors, the company has effectively harnessed India’s digital demand surge. Going forward, Hexacom’s robust infrastructure, innovative digital solutions, and a steady financial strategy are expected to maintain its momentum in India’s competitive telecom sector.
