Mehul Telecom Limited has reported a strong financial performance for the second half of fiscal year 2026, with EBITDA surging 93% year-on-year and profit after tax (PAT) growing 83%. The company attributed the robust results to improved operational efficiency, higher revenue from its core telecom services, and effective cost management.
Key Financial Highlights
For the six-month period ending March 2026, Mehul Telecom's EBITDA stood at INR 456 crore, compared to INR 236 crore in the same period last year. The EBITDA margin expanded significantly, reflecting better operating leverage. PAT rose to INR 215 crore from INR 117 crore in the corresponding period, underscoring the company's profitability trajectory.
Revenue and Operational Metrics
Total revenue from operations grew by 22% to INR 1,230 crore, driven by increased subscriber additions and higher average revenue per user (ARPU). The company's subscriber base expanded by 8% to 45 million, while ARPU improved to INR 185 from INR 172. Mehul Telecom also saw a reduction in churn rate, indicating improved customer retention.
Strategic Initiatives
During the period, Mehul Telecom invested in network expansion and 5G rollout, covering over 200 new cities. The company also launched several digital services, including a cloud-based platform for enterprise clients, which contributed to revenue diversification. Cost optimization measures, including automation of network operations, helped improve margins.
Management Commentary
Commenting on the results, Mr. Rajesh Mehul, Managing Director of Mehul Telecom, said: "Our strong H2 performance reflects the success of our strategic initiatives and operational discipline. We have achieved significant growth in both top-line and bottom-line, driven by robust subscriber growth and higher ARPU. We remain focused on expanding our 5G footprint and enhancing customer experience."
Future Outlook
Mehul Telecom expects sustained momentum in the coming quarters, supported by increasing data consumption and enterprise demand. The company plans to invest INR 500 crore in network infrastructure over the next year. It also aims to achieve double-digit revenue growth and further margin expansion through cost efficiencies and premium service offerings.
The company's board has recommended a dividend of INR 2 per share, subject to shareholder approval. Mehul Telecom's stock has gained 12% in the last month, outperforming the broader market.
