Indus Towers (INDUSTOWER) Q1 25/26 earnings summary

Executive summary

• Achieved a strong start to FY 2026 with consolidated revenue from operations reaching Rs. 80,576 Mn, maintaining majority market share in customer rollouts.

• Operational excellence enabled high network uptime (99.96%) despite severe weather disruptions and increased diesel use.

• Continued focus on cost efficiency, sustainability, and digital transformation, including AI and automation initiatives.

• Board decided to conserve cash and defer shareholder distributions, citing industry landscape, customer stability, elevated CapEx, and inorganic growth opportunities.

• Board approved results on July 30, 2025, following review by the Audit & Risk Management Committee.

Financial highlights

• Gross revenue grew 9.1% year-on-year to INR 80.6 billion; core rental revenue up 10.1% to INR 51.1 billion.

• EBITDA for Q1 FY26 stood at Rs. 44,752 Mn, slightly down from Rs. 46,017 Mn in Q1 FY25; EBITDA margin fell 7.1 percentage points to 54.5%.

• Adjusted EBITDA (excluding one-offs and acquisition impacts) grew 13.6% year-on-year.

• Profit after tax fell 9.8% year-on-year to INR 17.4 billion; adjusted PAT grew 23% year-on-year.

• Free cash flow at INR 15.7 billion, with a reduction of INR 4 billion in trade receivables.

Outlook and guidance

• Tower and co-location additions expected to remain robust over the next four to six quarters, supported by a strong order book.

• A major customer faces material uncertainty regarding its ability to continue as a going concern, which could impact future results.

• Board to revisit cash distribution policy at year-end, with no major policy change anticipated.

• Continued focus on cost optimization, energy efficiency, and technology-led transformation.