Bharti Hexacom Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Bharti Hexacom Ltd trades at ₹1,608, in a downtrend and 22 weeks into that stage. That is +1.1% against its own 200-day average. It sits at 38% of a 52-week range of ₹1,454 to ₹1,861. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 3 straight weeks.

Today the stock is in a downtrend — week 22 of stage 4, confirmed. At ₹1,608 it trades +1.1% versus its 200-day average and sits at 38% of its 52-week range (₹1,454–₹1,861).

Against the market, two honest reads. Cumulative: over the last 2.3 years the stock moved +98% while the NIFTY 500 moved +15% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 3 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Bharti Hexacom Ltd trades at 47.3× P/E, near the bottom of its own range — cheaper only 25% of the time. Its long-run median P/E is 63.4×, measured across 2.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 47.3× is near the bottom of its own range — cheaper only 25% of the time, against a long-run median of 63.4× measured over 2.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +16.0% against a −12.9% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Topping out Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Bharti Hexacom Ltd reads as topping out on its fundamental arc. Topping out — revenue, profit and EPS growth have decelerated hard (revenue growth +20.6% at its peak → +9.4% latest) while ROCE still reads 22.5%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: decelerating from a peak is where good stories quietly end — the multiple usually notices late.

4-Factor Sector Score

60.5/100 — rank 5 of 18 in Telecom Services · 83% evidence confidence

Bharti Hexacom Ltd scores 60.5 out of 100 against the 18 companies it is compared with in Telecom Services, ranking 5. Strong business, demanding price: keep it on the quality list, but require either earnings upgrades or valuation compression.

The four contributions add to the total exactly: 22.3 + 21.2 + 6 + 11 = 60.5. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Bharti Hexacom Ltd reported ₹2,414 Cr of revenue in the Mar 26 quarter, +5.5% year on year. That is the 12th straight quarter of year-on-year growth. Over 7 years it has compounded at 14.6% a year. The last full year, FY26, came in at ₹9,354 Cr. The last four reported quarters add to ₹9,354 Cr.

FY26 revenue came in at ₹9,354 Cr (+9.4% on the year), capping 7 years at 14.6% compound. The latest quarter (Mar 26) printed ₹2,414 Cr, +5.5% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +9.8% growth against the decade's 14.6% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +9.4% over the last 4 quarters against +14.9%/yr over the last 8 — rolling over; TTM profit +16.1% vs +85.3%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Bharti Hexacom Ltd's operating margin is 52.0% in the Mar 26 quarter, +1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 8 fiscal years the operating margin has ranged −2.5% to 52.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 52.0%, +1.0 pp against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged −2.5%–52.0%, and FY26's 52.0% is the top of that band — a record year.

Why the margin moved: operating margin went +1.5 pp year on year while gross margin went +0.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Bharti Hexacom Ltd earned ₹447 Cr of net profit in the Mar 26 quarter, −4.5% year on year. Full-year FY26 profit was ₹1,733 Cr. That is 18.5% of the quarter's revenue. The same quarter a year earlier earned ₹468 Cr. 1 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹447 Cr, −4.5% year on year. On the full year, FY26 printed ₹1,733 Cr (+16.0%).

🚨 Why profit moved: revenue contributed +5.5% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +30.1% vs revenue +9.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 338% of Bharti Hexacom Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹4,464 Cr of operating cash against ₹1,733 Cr of profit. After ₹1,697 Cr of capital spending, ₹2,767 Cr was left as free cash.

FY26: operating cash of ₹4,464 Cr against reported profit of ₹1,733 Cr, leaving free cash of ₹2,767 Cr after ₹1,697 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 338% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 338%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Bharti Hexacom Ltd's cash conversion cycle runs 4 days in FY26, down from 11 days in FY21. Capital spending ran ₹7,450 Cr over the last 3 years. At FY26 sales of ₹9,354 Cr each day of that cycle holds about ₹25.6 Cr, so roughly ₹103 Cr sits inside the business at any moment.

FY26: debtors at 4 days (an asset-light business — no inventory to speak of) — for a full cycle of 4 days, tighter than FY21's 11.

In money terms: at FY26 sales of ₹9,354 Cr, each day of the cycle holds about ₹25.6 Cr — so the 4-day loop keeps roughly ₹103 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹7,450 Cr over the last 3 fiscal years against ₹6,046 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹476 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Bharti Hexacom Ltd earns a ROCE of 21% in FY26. That is up from a trough of −9% in FY20. Return on invested capital clears the cost of that capital by +5.3 percentage points, so growth here adds value rather than only size. The wiring behind it is 18.5% net margin on 0.49× asset turns.

FY26 ROCE is 21%, recovered from a FY20 trough of −9% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 18.5% net margin × 0.49× asset turns × 2.66× balance-sheet leverage ≈ 24.1% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 17.3% − 12.0% = a +5.3 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Bharti Hexacom Ltd carries total debt of ₹6,137 Cr against shareholder equity of ₹7,165 Cr as of Mar 26, a debt-to-equity of 0.86. On the annual view that ratio went from 2.48 in FY22 to 0.86 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹6,137 Cr against shareholder equity of ₹7,165 Cr — a debt-to-equity of 0.86. On the annual view, debt-to-equity went from 2.48 (FY22) to 0.86 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 1.5 points of Bharti Hexacom Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 10.6% of the company. Foreign institutions moved −1.0 points over the same window, to 3.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +1.5 points over 8 quarters to 10.6%; Foreign institutions: −1.0 points over 8 quarters to 3.6%; Promoters: +0.0 points over 8 quarters to 70.0%.

Why the register moved: domestic institutions drove it (+1.5 points), absorbed on the other side by foreign institutions (−1.0 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Bharti Hexacom Ltd: the Z-score reads 5.59. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 5.59 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 5.59.

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