Indus Towers Limited , India's leading provider of passive telecom infrastructure, announced its financial results for the first quarter ended June 30, 2025 (Q1 FY26), reporting a mixed performance with strong revenue growth but declining profits.

Revenue Growth and Operational Highlights

The company reported a consolidated revenue of Rs 80,576.00 million for Q1 FY26, marking a 9.1% year-on-year increase from Rs 73,830.00 million in Q1 FY25. This growth was primarily driven by healthy co-location additions and substantial deployment on existing towers.

Indus Towers expanded its infrastructure significantly, with the total number of towers reaching 251,773 as of June 30, 2025, up from 225,910 a year ago. The number of co-locations increased to 411,212, compared to 374,928 in the same quarter last year. However, the average sharing factor slightly decreased to 1.63 from 1.67 year-on-year.

Profitability Under Pressure

Despite the robust top-line growth, Indus Towers faced challenges on the profitability front:

• EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) declined by 3.4% year-on-year to Rs 43,901.00 million.
• EBITDA margin contracted to 54.5% from 61.6% in Q1 FY25.
• Net profit after tax decreased by 9.8% year-on-year to Rs 17,368.00 million.

The decline in profitability can be attributed to rising operational costs, particularly in power and fuel expenses, which increased by 5.8% year-on-year to Rs 30,687.00 million.

Financial Position and Cash Flow

Indus Towers maintained a strong balance sheet:

• The company reported a net cash position of Rs 24,612.00 million (excluding lease liabilities) as of June 30, 2025.
• Operating free cash flow for the quarter stood at Rs 14,436.00 million, down 17.8% year-on-year.
• Return on Capital Employed (ROCE) improved to 28.1% from 20.9% in the previous year.

Management Commentary

Prachur Sah, Managing Director and CEO of Indus Towers, commented on the results: "We are pleased to have begun the year on an encouraging note, underpinned by healthy co-location additions, including substantial deployment on our existing towers. Our inherent strengths as a leading passive infrastructure player continue to help us achieve a meaningful share of our customers' rollouts."

He added, "Given the transformative potential of new age technologies, we continue to make investments in AI and digital solutions, aimed at future-proofing our operations. We believe that our scale, agility, and tech-forward approach position us favourably to capitalize on emerging opportunities amidst the backdrop of a rapidly evolving industry landscape."

Future Outlook and Strategic Focus

Indus Towers remains focused on capitalizing on the growing demand for telecom infrastructure, particularly with the ongoing 5G rollout in India. The company is investing in AI and digital solutions to enhance its operational efficiency and meet the evolving needs of its customers.

The Board of Directors, considering factors such as the evolving industry landscape, customer stability, elevated capital expenditure, and potential inorganic growth opportunities, has decided to conserve cash in the short term. This decision will be reassessed by the end of the financial year, demonstrating a prudent approach to capital allocation in a dynamic market environment.

As India's telecom sector continues to evolve, Indus Towers' extensive presence across all 22 telecom circles and its focus on technological advancements position it well to benefit from the country's digital transformation journey.

Financial Summary

Indus Towers' Q1 FY26 results reflect the company's ability to grow its top line in a competitive market while facing margin pressures. The company's strategic investments and focus on operational efficiency will be crucial in navigating the evolving telecom landscape and returning to profit growth in the coming quarters.

Indus Towers Limited , India's leading provider of passive telecom infrastructure, has announced its financial results for the first quarter ended June 30, 2025 (Q1 FY26). The company reported a mixed set of numbers, with strong revenue growth offset by margin pressure and a decline in profitability.

Key Financial Highlights

Operational Performance

• Total tower base expanded to 251,773, with 2,468 net additions during the quarter
• Total co-locations increased to 411,212, resulting in a closing sharing factor of 1.63
• Sharing revenue per tower per month decreased by 2.2% year-on-year to Rs 67,036
• Sharing revenue per sharing operator per month marginally increased by 0.1% to Rs 41,132

Management Commentary

Prachur Sah, Managing Director and CEO of Indus Towers, commented on the results: "We are pleased to have begun the year on an encouraging note, underpinned by healthy co-location additions, including substantial deployment on our existing towers. Our inherent strengths as a leading passive infrastructure player continue to help us achieve a meaningful share of our customers' rollouts."

He added, "Given the transformative potential of new age technologies, we continue to make investments in AI and digital solutions, aimed at future-proofing our operations. We believe that our scale, agility, and tech-forward approach position us favourably to capitalize on emerging opportunities amidst the backdrop of a rapidly evolving industry landscape."

Financial Position and Ratios

Other Highlights

• The company reported a write-back of Rs 88.00 crore in provision for doubtful receivables, aided by collections against past overdue amounts
• Indus Towers continues to focus on green initiatives, operating approximately 32,173 solar-powered sites across its network
• The company is actively working with government bodies to facilitate smart meter installations across its sites, which is expected to drive operational efficiency and reduce energy costs

Despite the challenges in profitability, Indus Towers' continued focus on operational efficiency, green initiatives, and technological advancements positions it well to capitalize on the ongoing digital transformation and 5G rollout in India. The company's strong market position and strategic investments in future-ready solutions are likely to support its long-term growth prospects in the evolving telecom infrastructure landscape.

Investors and analysts will be closely watching the company's ability to improve margins and profitability in the coming quarters, as well as its progress in adapting to the changing needs of telecom operators in the 5G era.