Indus Towers Limited , India's leading provider of passive telecom infrastructure, has reported a robust performance for the second quarter of fiscal year 2026, demonstrating steady growth and operational efficiency. The company also unveiled plans for strategic expansion into African markets, marking a significant milestone in its growth trajectory.

Financial Highlights

For the quarter ended September 30, 2025, Indus Towers reported:

• Revenue from operations of ₹8,188.00 crore, up 9.7% year-on-year
• EBITDA of ₹4,613.00 crore, with a margin of 56.3%
• Profit after tax of ₹1,839.00 crore
• Operating free cash flow of ₹1,039.00 crore

Operational Performance

The company continued to strengthen its market presence with significant tower additions:

• Total tower base increased to 256,074, up from 229,658 in the same quarter last year
• Co-locations grew to 415,717, compared to 379,236 in Q2 FY25
• Closing sharing factor stood at 1.62

Strategic Expansion into Africa

Indus Towers announced its plans to enter the African market, initially focusing on Nigeria, Uganda, and Zambia. This strategic move aims to diversify revenue streams and leverage the company's expertise in high-potential markets.

Prachur Sah, Managing Director and CEO of Indus Towers, commented on the results and expansion plans: "We are pleased to report another quarter of solid performance driven by healthy tower additions and the strengthening of our market presence. Our sharp focus on cost efficiency has been contributing to steady improvement in our profitability. The quarter also marked announcement of our plan to foray into Africa, a strategic step towards supplementing our long-term growth by extending Indus Towers' proven execution capabilities to new high-potential markets."

Future Outlook

Indus Towers remains committed to enhancing its operational efficiency and service quality through automation and AI initiatives. The company's emphasis on leveraging these technologies is expected to play a crucial role in maintaining its market leadership and driving sustainable growth.

As the telecommunications sector in India continues to evolve, particularly with the ongoing 5G rollout, Indus Towers is well-positioned to capitalize on the increasing demand for robust telecom infrastructure. The company's strategic expansion into African markets further underscores its commitment to long-term growth and value creation for shareholders.

Investors and industry observers will be keenly watching how Indus Towers navigates its expansion into new territories while maintaining its strong performance in the Indian market. The company's ability to replicate its successful business model in Africa could potentially open up significant growth opportunities in the coming years.

Indus Towers Limited , India's leading provider of passive telecom infrastructure, has reported a mixed set of financial results for the second quarter of fiscal year 2026. The company saw an increase in revenue but experienced a decline in profitability compared to the same period last year.

Financial Highlights

Revenue Growth

Indus Towers demonstrated strong top-line performance, with revenue increasing by 9.7% year-over-year to 81.88 billion rupees in Q2 FY26. This growth indicates the company's ability to expand its business and potentially secure new contracts or increase services to existing customers.

Profitability Challenges

Despite the revenue growth, the company faced challenges in maintaining its profitability:

1. Net Profit Decline: Net profit decreased by 17.3% to 18.39 billion rupees, compared to 22.23 billion rupees in the same quarter last year.

2. EBITDA Performance: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a slight decrease of 1.1% to 68.76 billion rupees.

3. Margin Compression: The EBITDA margin contracted significantly by 910 basis points, from 93.08% in Q2 FY25 to 83.97% in Q2 FY26.

Factors Affecting Performance

While the company has not provided specific reasons for the decline in profitability in the given data, possible factors could include:

• Increased operational costs
• Higher investments in infrastructure expansion
• Competitive pressures in the telecom infrastructure market
• Changes in the regulatory environment

Looking Ahead

Indus Towers' ability to grow its revenue in a challenging market environment demonstrates its strong market position. However, the company may need to focus on cost management and operational efficiency to improve its profitability in the coming quarters.

Investors and analysts will likely be watching closely to see how Indus Towers addresses the margin pressure and works to align its bottom-line growth with its top-line performance in future quarters.