Indus Towers delivered steady financial growth in the first quarter of fiscal year 2027 (Q1FY27), driven by continued network expansion and strong colocation additions. Gross revenues rose 4.6% year-on-year to ₹84.3 billion, while core rental revenues grew 5.2% to ₹53.7 billion. Profit after tax (PAT) increased 0.5% year-on-year to ₹17.5 billion. The company also announced that it has received regulatory approvals and operating licenses for its Africa expansion in Nigeria, Uganda, and Zambia, with rollouts expected to commence in the next quarter.

The earnings call, held on July 28, 2026, was moderated by Neerav and featured Prachur Sah, Managing Director and Chief Executive Officer, Vikas Poddar, Chief Financial Officer, and Dheeraj Agarwal, Head of Investor Relations. During the closing remarks, Prachur Sah thanked Vikas Poddar for his leadership over the past five years, marking the end of Poddar’s tenure as CFO.

Financial Performance

Indus Towers’ financial metrics for Q1FY27 reflect stable operational execution despite seasonal energy cost pressures. Gross revenues grew sequentially by 4.1%, aided by a 9.5% quarter-on-quarter increase in energy revenue due to seasonality-led diesel consumption and price increases.

Vikas Poddar noted that reported EBITDA growth of 3.0% year-on-year was impacted by write-backs of approximately ₹0.9 billion in the corresponding quarter of FY26 related to overdue receivables from a major customer. Adjusting for this one-off item, EBITDA grew 5.2% year-on-year. The sequential decline in PAT primarily reflected a lower tax charge in Q4FY26 due to year-end adjustments.

Operational Highlights

The company added almost 3,100 macro towers and 4,200 colocations during the quarter, resulting in a year-on-year growth of 6.3% and 5.1% in the tower and colocation base, respectively. The total macro tower base stood at around 267,600, with colocations at 432,300. Including lean towers, the total tower count reached approximately 446,300. The industry-leading tenancy ratio remained stable at 1.62.

Energy management remained a key focus, with diesel consumption reducing by 13% year-on-year despite growing colocations. This reduction was achieved through digital energy management initiatives, fuel monitoring systems, solar deployments, and lithium-ion battery installations. Solar access was added to about 3,700 sites, bringing the total site count with solar access to about 46,000. The installed solar base reached 259 megawatts. Network reliability remained robust with an uptime of 99.95%.

What the Numbers Show

While gross revenues grew at a mid-single-digit pace, the divergence between rental revenue growth (5.2%) and colocation growth (5.1% YoY) highlights the impact of renewal discounts and revenue equalization mechanisms. Management explained that escalation-led growth is offset by discounts on renewals and the tail end of revenue equalization periods for towers deployed in 2021-2022. Additionally, the shift toward leaner tower designs, which command lower rentals than legacy structures, further moderates average rental per tower per tenancy (ARPT) growth. Despite these headwinds, the company maintained high operating leverage through consistent colocation additions outpacing tower additions.

Strategic Developments

Indus Towers expanded its product portfolio with integrated In-Building Solutions (IBS) and build-to-suit hybrid solutions for large residential complexes, metro stations, tunnels, and government establishments. On the sustainability front, the company received the 13th Gallup Exceptional Workplace Award and launched a campaign to enhance material handling safety. Its CSR programs touched approximately 12 million lives in Q1FY27.

Regarding the Africa expansion, Prachur Sah stated that regulatory approvals have been secured in all three target markets: Nigeria, Uganda, and Zambia. The company has placed key supply orders and initiated partner onboarding. Rollouts are expected to begin in Q2FY27. Management clarified that the initial capex for Africa will be moderate relative to India operations and largely debt-funded, ensuring that India’s free cash flow and dividend distribution policy remain unaffected. The Board remains committed to distributing dividends and free cash flow to shareholders.

Indus Towers will hold its 20th Annual General Meeting (AGM) on Wednesday, August 19, 2026, at 02:30 P.M. (IST) via Video Conferencing (VC) or Other Audio Visual Means (OAVM). The meeting aims to transact business as outlined in the official notice, ensuring compliance with the Companies Act, 2013, SEBI Listing Regulations, and relevant Ministry of Corporate Affairs circulars. This virtual format allows shareholders to participate and exercise voting rights without physical presence.

Dividend and Record Date

The Board of Directors has recommended a final dividend of ₹14 per fully paid-up equity share of face value ₹10 each for the financial year ended March 31, 2026, representing 140% of the face value. The proposed dividend payout, based on the outstanding number of shares as on the date of the report, will amount to approximately ₹36,934 Million. The record date for determining eligibility for the final dividend is Monday, August 10, 2026. The dividend, if approved by shareholders at the AGM, will be paid within 30 days from the date of declaration.

AGM Agenda

The AGM will transact the following businesses:

Key Dates and E-Voting Window

The company completed electronic dispatch of the AGM Notice and Integrated Annual Report & Financial Statements for the financial year ended March 31, 2026, on Tuesday, July 24, 2026. Physical communications containing access links and QR codes were issued to members without registered email addresses. The documents remain accessible on the company's website, NSDL's e-voting portal, and the BSE and NSE websites.

Shareholders holding shares in physical or dematerialized form as of the cut-off date, Wednesday, August 12, 2026, are eligible to vote. National Securities Depository Limited (NSDL) facilitates both remote e-voting and e-voting during the AGM. Votes cast remotely cannot be modified subsequently. Members who have voted remotely may attend the AGM but cannot vote again.

FY26 Financial and Operational Highlights

The company reported strong operational and financial performance for the financial year ended March 31, 2026. The following table summarises key consolidated financial metrics:

The decline in EBITDA and PAT was primarily attributable to the higher base in FY25, which included recovery of significant overdues from a major customer amounting to approximately ₹51 Billion. Adjusted for this, EBITDA and net profit grew by 11.4% and 13.0% respectively in FY26.

On the operational front, the company expanded its macro tower portfolio to 264,514 towers and 428,014 co-locations as on March 31, 2026, with net additions of 15,209 macro towers and 22,579 co-locations during the year. The closing sharing factor stood at 1.62 times per tower. Network uptime was maintained at an industry-leading 99.97%.

Material Related Party Transaction with Bharti Airtel

Shareholders will also vote on approval of material related party transactions with Bharti Airtel Limited, the promoter and holding company, for an aggregate amount not exceeding ₹26,000 Crore in any financial year. The approval will be valid from the date of the 20th AGM up to the date of the 21st AGM, subject to a maximum period of fifteen months. All such transactions are conducted on an arm's length basis and in the ordinary course of business.

E-Voting Results and Other Disclosures

Members acquiring shares after the notice dispatch but before the cut-off date can obtain User IDs and passwords by contacting evoting@nsdl.com . The e-voting results will be declared within two working days or three days, whichever is earlier, from the AGM's conclusion. Results will be published on the company's website and NSDL's portal, with simultaneous communication to stock exchanges. Additionally, pursuant to SEBI Circular No. HO/38/1311 (2/2026-MIRSD-PB01/3750/2026), a special window remains open from February 05, 2026, to February 04, 2027, for re-allocation of physical share transfer requests lodged before April 01, 2019, that were previously rejected due to deficiencies.

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