Bharti Hexacom Ltd

- Bharti Airtel has prepaid most of its high-cost spectrum debt and the free cash flow profile has improved substantially. - Areas where free cash flow may be utilized include continued deleveraging, stepped-up dividend payouts, and selective, prudent investments. - Management is open to bolt-on acquisitions in digital adjacencies, but as of now, there are no imminent deals or substantial value assets on the anvil. - No mention of any immediate or planned large-scale new fundraising through debt or equity. - Overall, focus is on financial prudence, deleveraging, and targeted investments rather than raising new capital at this time.

- Capex is expected to moderate in FY2026 compared to FY2024, continuing the current downward trend. - Radio capex has significantly decelerated with a focus now on a few additional 5G radios as device adoption grows. - Transport infrastructure remains a key capex area to build a strong backbone for broadband, B2B, and mobile services. - Home broadband capex is increasing, driven by fiber home pass expansions and FWA rollout, constrained mainly by rollout capacity. - B2B and data center capex remain stable at current levels. - Capex for Fixed Wireless Access (FWA) Customer Premises Equipment (CPE) will rise due to higher costs compared to broadband CPE. - Airtel Finance is building organically but remains open to selective inorganic expansions in digital adjacencies. - The company is cautious on AI GPU as a service investments but maintains interest in expanding its data center business. - Dividend payout is expected to receive positive consideration alongside necessary capex investments.

- Broadband market expected to double from 45 million to 80-90 million homes over the medium term, driven by fiber home passes and FWA rollout in 2000+ cities. - Accelerated fiber home pass addition continues at 1.9 million per quarter. - Mobile postpaid segment offers significant growth potential with 80 million customers targeted for upgrades. - Digital adjacencies like Cloud, Security, IoT, CPaaS driving ~90% of incremental industry growth in B2B; company stepping up investments for faster growth. - Exit of low-margin commodity voice and messaging business in B2B to improve focus and profitability. - Strong momentum in DTH and home broadband, with new content partnerships (ZEE5, OTT apps) and IPTV testing to boost value. - 5G adoption driving data monetization through higher-end plans and additional data packs, supporting ARPU growth. - Capex expected to be lower than FY2024 and further unwind in FY2026, focusing on transport, homes, and B2B future-proofing.

- Bharti Airtel expects continued growth in digital adjacencies like Cloud, Security, IoT, and CPaaS, which account for ~90% of incremental industry growth. - The company is launching a comprehensive cloud solution in the coming months to accelerate growth. - Exit from low-margin commodity voice and messaging businesses in B2B will streamline focus on higher-margin digital and connectivity services. - Mobile postpaid segment offers a significant growth opportunity with 80 million potential upgraders. - Fiber home pass additions and FWA expansions continue to build momentum in broadband. - Capex is expected to moderate going forward, focusing on future-proofing transport, homes, and B2B with lower radio investments due to 5G rollout stabilization. - EBITDA and profits are expected to improve due to tariff repair, operational efficiencies, and portfolio transformation toward higher-margin businesses. - Deleveraging efforts and steady free cash flow generation support dividend growth and selective strategic investments. - EBITDA margin improvement seen due to tariff increases may moderate but operational leverage will enhance profitability over time.

- The order book in the global segment, specifically related to monetization of cable investments, had seen a slowdown due to reduced interest from OTT players. - However, there are signs of change and improvement in the current quarter in terms of the order book. - This segment is described as very profitable and the renewed growth in orders bodes well for the coming year.