Bharti Hexacom In line 4Q26; ARPU expansion slower from here

Research evidence excerpt

Bharti Hexacom In line 4Q26; ARPU expansion slower from here

J P M O R G A N Asia Pacific Equity Research

15 May 2026

Bharti Hexacom Overweight

BHAX.NS, BHARTIHE IN

In line 4Q26; ARPU expansion slower from here Price (14 May 26):Rs1,509.70

▼Price Target (Mar-27):Rs1,880.00

Prior (Dec-26):Rs1,950.00

We update our estimates following the 4Q print. 4Q results were broadly in-line on

both revenues and Ebitda vs. consensus. Revenues grew 2% QQ led by subscribers Head of APAC Telecoms and India

TMT Research(1%) even as ARPU dipped slightly. Mobile net adds remained healthy at 370K.

Hexacom saw acceleration in net adds in Homes at 148K. We have pushed out tariff Ankur Rudra, CFA AC

hikes from Jul to Nov for FY27 and then assume the next tariff hike in FY29 (vs (65) 6801-3237

ankur.rudra@jpmorgan.com

earlier FY28) that drives 2-8% cuts to revenues/Ebitda over FY27-28E. Remain J.P. Morgan Securities Singapore Private Limited

OW and reduce PT by 4% to Rs1,880 (from Rs1,950) as we cut the India Wireless

Bhavik Mehta, CFA

multiple from 14.5x to 14x EV/Ebitda, given slower Ebitda growth as tariff hikes (91-22) 6157-3871

are pushed out and roll fwd from Dec’26 to Mar’27. Capex surged from an bhavik.mehta@jpmchase.com

investment in transport (wireless) and Homes even as RAN/core capex is J.P. Morgan India Private Limited, J.P. Morgan

moderating. Organic ARPU expansion could be slower in FY27 thanks to weaker Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

roaming (Middle East conflict) and slower smartphone upgrades due to sharp price Harshit Sharma

increases in affordable smartphones. (91-22) 6157-5879

harshit.sharma@jpmchase.com

Hexacom’s EV/Ebitda premium to Bharti has shrunk to 20% and gone below its J.P. Morgan India Private Limited, J.P.