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Bharti Hexacom (NSE:BHARTIHEXA) Degree of Operating Leverage : 2.88 (As of Mar. 2025)


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What is Bharti Hexacom Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Bharti Hexacom's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.88. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Bharti Hexacom's Degree of Operating Leverage or its related term are showing as below:

NSE:BHARTIHEXA's Degree of Operating Leverage is ranked worse than
62.57% of 366 companies
in the Telecommunication Services industry
Industry Median: 1.405 vs NSE:BHARTIHEXA: 2.88

Bharti Hexacom Degree of Operating Leverage Historical Data

The historical data trend for Bharti Hexacom's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Bharti Hexacom Degree of Operating Leverage Chart

Bharti Hexacom Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
- -30.83 -2.06 2.58 2.88

Bharti Hexacom Quarterly Data
Mar21 Mar22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 2.58 0.76 2.37 3.25 2.88

Competitive Comparison of Bharti Hexacom's Degree of Operating Leverage

For the Telecom Services subindustry, Bharti Hexacom's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Bharti Hexacom's Degree of Operating Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Bharti Hexacom's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Bharti Hexacom's Degree of Operating Leverage falls into.


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Bharti Hexacom Degree of Operating Leverage Calculation

Bharti Hexacom's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 24971 (Mar. 2025) / 15677 (Mar. 2024) - 1 )/( 85479 (Mar. 2025) / 70888 (Mar. 2024) - 1 )
=0.5928/0.2058
=2.88***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Bharti Hexacom  (NSE:BHARTIHEXA) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Bharti Hexacom Degree of Operating Leverage Related Terms

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Bharti Hexacom Business Description

Traded in Other Exchanges
Address
Nelson Mandela Road, Bharti Crescent, 1, Vasant Kunj, Phase II, New Delhi, IND, 110070
Bharti Hexacom Ltd is a communications solutions provider offering consumer mobile services, fixed-line telephone, and broadband services to customers in the Rajasthan and the North East telecommunication circles in India, It offers services under the brand 'Airtel'. The company has three reportable segments: Mobile Services: which covers voice and data telecom services provided through wireless technology (2G/4G/5G). This also includes intra-city fiber networks. Homes and Office Services: covers voice and data communications through fixed-line network and broadband technology for homes and offices. Unallocated: items include expenses/results, assets and liabilities of corporate headquarters of the company. Key revenue is generated from Mobile Services segment.

Bharti Hexacom Headlines

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