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, robust co-location and tower additions, and majority market share in customer rollouts.

• Operational excellence enabled high network uptime (99.96%) despite severe weather disruptions and early monsoon.

• Board decided to conserve cash in the short term, deferring shareholder distributions due to industry dynamics, customer stability, elevated CapEx, and inorganic growth opportunities.

• Net profit for Q1 FY26 was Rs. 17,368 Mn, compared to Rs. 19,259 Mn in Q1 FY25 and Rs. 17,791 Mn in Q4 FY25.

• 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% year-on-year 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 year-on-year 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 profit after tax grew 23% year-on-year.

• Free cash flow generation was strong at INR 15.7 billion, aided by overdue receivables collection and a reduction in trade receivables by INR 4 billion.

Outlook and guidance

• Tower and co-location additions expected to remain robust for 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 will reassess cash distribution policy at the end of the financial year, with no major policy change anticipated.

• Focus remains on cost efficiency, technology-led transformation, and leveraging AI and automation.