Bharti Hexacom Q4 Results Review: Inline; Motilal Oswal Prefers Airtel Following Bharti Hexacom’s Sharp Run-Up

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Motilal Oswal Report

Bharti Hexacom Ltd. provides a pure-play exposure to Bharti Airtel’s fast-growing India wireless and home broadband segments. Given the relatively lower penetration of mobile and fixed broadband in Bharti Hexacom’s circles, its growth prospects are slightly better than Airtel's.

Our earnings are broadly unchanged as we model a revenue/Ebitda/PAT CAGR of ~14%/21%/ 42% over FY25-28E.

Since our initiation in March 2025, Bharti Hexacom has delivered ~30% returns and now trades at ~25% premium to the implied EV/Ebitda valuation for Bharti’s India business (vs ~13% on average since its listing). 

We believe Bharti Hexacom should command a premium to Airtel, given its slightly higher growth, better RoCEs, and lower capital misallocation concerns, and ascribe a DCF-based Jun’27E EV/Ebitda of 14.5x (~10% premium to our multiple for Airtel’s India wireless business) to Bharti Hexacom.

We reiterate our Buy rating on Bharti Hexacom with an SoTP-based revised target price of Rs 1,900.

We continue to like Bharti Hexacom’s superior execution on the premiumization agenda and continued market share gains. However, we believe a 25% premium is steep, and hence, we would prefer Airtel to Bharti Hexacom at present.

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