ICICI Securities's research report on Bharti Hexacom
Bharti Hexacom’s (BHL) Q1FY26 print was weaker than expected due to 1) lower roaming revenue on seasonality, and external events impacting number of inroamers; and 2) higher other expenses on certain USOF site related cost, partly offset by employee cost provision reversal. BHL generated strong FCF of INR 9bn in Q1, and capex intensity moderated with the completion of rural expansion. Fixed broadband revenue growth remains strong (+10.6% QoQ), and FWA is
helping BHL in expanding its addressable market.
Outlook
We trim EPS by 4-6% for FY26/27E and TP to INR 1,760 (from INR 1,780) as we keep EV/EBITDA multiple unchanged at 16x. Upgrade to HOLD (from Reduce). Structurally, we like integrated telco (Bharti Airtel) over pure mobility Bharti Hexacom.
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