Indus Towers (INDUSTOWER) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw robust tower additions, strengthened market presence, and a significant foray into Africa as part of a long-term growth strategy.

• Operations remained resilient despite severe monsoon disruptions, with network uptime at 99.97%.

• Audited consolidated and standalone financial results for Q2 and half year ended September 30, 2025, were approved by the Board and reviewed by the Audit & Risk Management Committee on October 27, 2025.

• The audit opinion is unmodified, but there is an emphasis on material uncertainty regarding a major customer’s financial condition and its impact on receivables and assets.

• Automation, AI, and sustainability initiatives advanced, including solar site expansion and ESG partnerships.

Financial highlights

• Total revenue for Q2 FY26 was INR 81.9 billion, up 9.7% year-on-year; core rental revenue grew 11.3% year-on-year to INR 52.4 billion.

• Consolidated net profit for Q2 FY26 was Rs. 18,393 million, compared to Rs. 22,235 million in Q2 FY25.

• Reported EBITDA was INR 46.1 billion, down 6% year-on-year but up 5.1% sequentially; adjusted EBITDA rose 14.9% year-on-year.

• Free cash flow for the quarter was INR 3.0 billion, with a sequential decline due to higher CapEx and timing gaps in collections.

• Basic and diluted EPS for Q2 FY26 stood at Rs. 6.97, compared to Rs. 8.30 in Q2 FY25.

Outlook and guidance

• Management expects robust growth in India over the next three to four quarters, supported by a strong order book for new towers and tenancies.

• Africa expansion will begin organically with new tower builds and may consider inorganic opportunities if they arise.

• The company continues to monitor the financial health of a major customer, whose ability to continue as a going concern is uncertain and could impact future results.

• Dividend distribution is expected by the end of the financial year, pending regulatory clarity.