Indus Towers (INDUSTOWER) Q2 26/27 earnings summary

Executive summary

• Q2 revenue from operations was Rs 85,156 million; profit for the period was Rs 17,928 million, down from Rs 18,393 million YoY. Adjusted EBITDA and PAT grew 5.2% and 6.4% YoY, excluding prior-year receivables write-backs.

• Strong co-location additions lifted the tenancy ratio to 1.63; Zambia and Uganda deployments began generating revenue, with Nigeria deployment planned for the current quarter.

Financial highlights

• Q2 revenue rose 4% YoY to Rs 85,156 million; core rental revenue was INR 54.5bn, up 3.9% YoY. Q2 total expenses increased to Rs 38,826 million from Rs 35,755 million.

• Reported EBITDA was INR 46.3bn, up 2.5% QoQ; margin rose 80 bps QoQ to 54.4%. PAT was INR 17.9bn, up 2.7% QoQ.

• H1 revenue was Rs 169,467 million versus Rs 162,458 million; profit was Rs 35,386 million versus Rs 35,761 million. H1 total expenses were Rs 77,929 million versus Rs 72,430 million.

• Q2 profit before tax was Rs 24,112 million versus Rs 24,784 million YoY; H1 profit before tax was Rs 47,586 million versus Rs 48,122 million.

• Free cash flow was INR 14bn; H1 operating cash flow was Rs 81,966 million, versus Rs 79,034 million YoY.

Outlook and guidance

• Strong tower and tenancy order books support continued rollout momentum; no specific forward tower-addition run rate was given.

• Revenue growth is expected to track customer-order deployments; new co-locations may contribute a full quarter of revenue in subsequent periods.

• Nigeria deployment is planned for the current quarter; Africa rollout is scheduled to ramp in H2, with more operating and financial metrics as the portfolio scales.

• Operating efficiency, energy-cost optimization and technology integration remain priorities for profitable growth and long-term value creation.