ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bharti Hexacom's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.01%.
As of today (2026-07-13), Bharti Hexacom's WACC % is 12.57%. Bharti Hexacom's ROIC % is 9.82% (calculated using TTM income statement data).
Bharti Hexacom earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Bharti Hexacom (BOM:544162) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Bharti Hexacom's WACC % is 12.57%. Bharti Hexacom's ROIC % is 9.82% (calculated using TTM income statement data).
Bharti Hexacom earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Bharti Hexacom ROIC % Related Terms
Bharti Hexacom ROIC % Historical Data
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The historical data trend for Bharti Hexacom's ROIC % 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.
For the Telecom Services subindustry, Bharti Hexacom's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Bharti Hexacom's ROIC % distribution charts can be found below:
* The bar in red indicates where Bharti Hexacom's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Bharti Hexacom (BOM:544162) has a ROIC % of 10.01% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Bharti Hexacom and its competitors.
Is Bharti Hexacom's ROIC % too high?
Bharti Hexacom's current ROIC % is 10.01%. The Telecommunication Services industry median ROIC % is 4.53. Bharti Hexacom's value of 10.01% is 121% above this industry median. Overall, Bharti Hexacom has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Bharti Hexacom's ROIC % compare to TMUS and VZ?
Bharti Hexacom's ROIC % of 10.01% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.53. Bharti Hexacom's value of 10.01% is 121% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.53, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bharti Hexacom's current ROIC % of 10.01% is 121% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Bharti Hexacom and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bharti Hexacom's current ROIC % is 10.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bharti Hexacom stock overvalued right now?
Bharti Hexacom (BOM:544162) has a current ROIC % of 10.01%. The current ROIC % is 10.01% and 121% above the Telecommunication Services industry median of 4.53. Bharti Hexacom's overall GF Score™ is 48/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Bharti Hexacom (BOM:544162), the current ROIC % is 10.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
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.
48GF Score
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