Strong margins mask deceleration in subscriber adds; quality over growth

Revenue ₹2509.9 Cr (+10.9% YoY, +4% QoQ); PAT ₹482.4 Cr (+23.2% YoY); EBITDA margin 48.2%

210k adds vs historical ~300k+; analysts flagged as 'weaker' than past quarters

75k delivered; noted as lowest in 7-8 quarters but intentional quality tightening

Net debt ₹960 Cr excl. leases; ratio of 0.2x is very healthy

1210 Cr EBITDA on ₹2509.9 Cr revenue = 48.2% delivered

210k adds Q1 FY27 vs ~300k+ in prior quarters; seasonality cited but reflects pullback in low-quality prepaid. YoY comparison positive (10.9% revenue growth) but QoQ momentum weak.

75k adds (from 473k+ in Airtel's prior quarter) due to deliberate tightening of FWA acquisition quality and chip price headwinds. Management says temporary; watch for reversal in Q2.

EBITDA margin holds 48.2% (strong) but homes/IPTV investments keep EBIT negative/low. No margin guidance shift, but capex-heavy posture evident.

Net debt/EBITDA 0.2 (from implied ~0.3 prior year); strong FCF (₹830 Cr) supports balance sheet resilience.

~15–17 cities in Northeast and Rajasthan circles. Terrain difficult (wireless+wired blend needed). Shillong is advanced market example. Demographic nuance required vs. metro circles.

Seasonality; H2 typically stronger. Homes strategy unchanged; current quarter reflects quality tightening only. No guidance revision.

Seasonal solar benefit; one-off adjustments. Full quarter diesel impact not yet visible (inventory buffer). Trend is up sequentially, in line with plan.

No forecast given, but unit economics sound. Once critical mass reached, will naturally turn positive. CPE cost deleveraging is the issue; small ₹ impact today.

Rajasthan extremely competitive (national players, listed entity). Northeast more comfortable position. Intensity on ground (acquisition, network) same everywhere.

Management focused on profitable, quality growth. Sequential/YoY trends imply mid-single-digit to low-double-digit trajectory if momentum holds.

Current 48.2% reflects cost optimization. Homes EBIT drag temporary; overall margins stable if capex ROI achieved.

No capex intensity % target given. Net debt/EBITDA 0.2 provides headroom. Will spend what's needed for competitive/profitable growth.

Mobile +210k adds lowest in Hexacom history. Homes +75k lowest in 7–8 quarters. Seasonality cited, but if not recovered in H2, may signal market share erosion or pricing pressure.

Homes/Office/Other revenue growing (8% QoQ) but EBIT margin negative/immaterial. CPE capex and fiber rental costs not yet leveraged. No inflection timeline given; could remain unprofitable for 2+ years.

Rajasthan flagged as 'extremely competitive,' national players present. Hexacom's smaller scale may face margin or add pressure if competitors scale aggressively. No quantified market share target.

5G, homes, IPTV buildout is capex-heavy. Operating FCF ₹830 Cr sufficient for now, but sustained high capex (5G, data center potential) could pressure balance sheet if ROI delayed.