Indus Towers Reports Q1 FY26 Results: Revenue Up 9.1%, EBITDA Margin at 54.5%
By ScanX News Team
Indus Towers Limited announced its Q1 FY26 results, showing a 9.1% YoY increase in revenue to Rs 8,058.00 crore. However, EBITDA decreased by 3.4% to Rs 4,390.00 crore, with margins dropping from 61.6% to 54.5%. Net profit declined by 9.8% to Rs 1,737.00 crore. The company expanded its tower base to 251,773 and increased co-locations to 411,212. Despite profitability challenges, Indus Towers continues to invest in AI and digital solutions, focusing on operational efficiency and green initiatives.
*this image is generated using AI for illustrative purposes only.
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
| Metric | Change |
|---|---|
| Revenue from operations | +9.1% YoY to Rs 8,058.00 crore |
| EBITDA | -3.4% to Rs 4,390.00 crore |
| EBITDA margin | 54.5%, down from 61.6% in Q1 FY25 |
| Net profit | -9.8% to Rs 1,737.00 crore |
| Operating free cash flow | -17.8% to Rs 1,444.00 crore |
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
| Metric | Q1 FY26 | Q1 FY25 |
|---|---|---|
| Return on Equity (Pre-Tax) | 40.8% | 34.7% |
| Return on Capital Employed | 28.1% | 20.9% |
| Net Debt to EBITDA ratio | 0.81x | 1.22x |
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.
Historical Stock Returns for Indus Towers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.93% | -12.31% | -17.90% | -2.18% | -19.51% | +82.40% |
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