Bharti Hexacom Ltd

- A significant part of debt reduction happened toward the end of the quarter, aided by rights issue funds and payment of AGR dues. - There is a clear plan for capital allocation prioritizing the core business and controlled investments in growth areas. - Bharti Airtel plans a controlled financial services business with a small ticket lending allocation of ₹20,000 Crores over five years, likely less as per current progress. - No explicit mention of new fundraising through equity or large debt at present; future capital needs will be met optimally and prudently. - The company remains open to deploying capital for 5G densification and other core business needs as required. - The Africa exchange of shares transaction ($3 billion) was akin to an acquisition funded by existing resources. - Overall, capital allocation will focus on core business, adjacencies, deleveraging, and shareholder rewards with no immediate plans for major new fundraising.

- Wireless capex in India has moderated and hit a decade low (~16% of sales), but 5G densification could lead to increased spend if needed; focus on optimal, prudent deployment. - Transport capex is set to double down, increasing fiber points of presence and infrastructure quality. - A major ongoing project includes building 56 world-class edge data centers over the next 18-24 months for long-term differentiation. - Cloud business will see modular investments in servers within existing data centers, expanding three cloud regions as required. - Financial services will require measured investment, leveraging platform efficiencies while maintaining strong collection and compliance culture. - Data center expansion aims to increase market share from current 10-12% toward a gigawatt scale. - Adjacent areas such as cybersecurity, B2B, and bolt-on acquisitions in core adjacencies continue to be evaluated. - Capex guidance indicates spending will remain broadly in the ballpark of the current fiscal year, with flexibility for growth bets.

- **Enterprise Business:** Order book grew 17% in FY2026; expected significantly better growth in FY2027 with higher ROCE in new business segments. - **Digital Businesses:** Strong growth at 27% in FY2026; ongoing investments in cloud, cybersecurity, financial services, IoT, digital platforms, and CPaaS expected to diversify revenue. - **Home Broadband:** Continued rapid home pass expansion, crossing 45 million, focusing heavily on fiber for superior connectivity; fixed wireless access (FWA) growth moderated due to rising costs. - **Mobile Business:** Focus on accelerating ARPU growth through postpaid penetration, handset upgrades, data consumption, and international roaming; organic ARPU growth levers remain strong. - **Capital Expenditure:** Capex to be maintained around current levels with emphasis on fiber, transport infrastructure, and edge data centers to support growth. - **AI and Digital Tools:** AI embedded deeply across platforms, enhancing customer engagement, spam blocking, and operational efficiencies, driving future growth.

- Enterprise Business: Growth expected to accelerate in FY2027 versus FY2026, with new business anticipated to deliver better Return on Capital Employed (ROCE). (Page 11) - Wireless ARPU: Organic ARPU growth of 5% year-on-year seen; further acceleration possible through portfolio premiumization, postpaid penetration, and consumption upgrades without immediate tariff hikes. (Pages 7-9) - Capex: Wireless capex at decade low (~16% of sales) but poised for optimal increase if needed for 5G densification; transport capex (fiber infrastructure) to double down. (Page 9) - Home Broadband: Focus remains fiber-first strategy; fixed wireless access (FWA) costs have risen, reinforcing fiber preference. (Page 11) - Digital and Adjacent Businesses: Growth in digital businesses and data centers expected, though margin pressures possible due to business mix; absolute EBITDA and profit growth targeted. (Page 11) - Capital Allocation: Focus on core business investments, deleveraging, and selective adjacencies—data centers, financial services, and cloud—with overall capex stable around current levels. (Pages 6-9)

- The enterprise business order book has grown by 17%, indicating strong momentum. - The commodity business within enterprise, which had lower margins, has been discontinued. - Growth rate for FY2027 in the enterprise segment is expected to be significantly better than FY2026. - Continued focus on connectivity services, data centers, and digital businesses as growth drivers. - The mix of businesses (connectivity with high margins and digital/CPaaS with lower margins) may create some margin pressure despite topline and absolute EBITDA growth. - No specific forward-looking guidance on order book size, but growth and acquisition efforts are ongoing as per management discussions.