Indus Towers (INDUSTOWER) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw strong tenancy additions, driven by improved network investment from a major customer and government support for telecom sector stability.

• Operational highlights include tower installations in remote and defense areas, and continued progress in digital transformation and ESG initiatives.

• Africa expansion advanced with new subsidiaries and groundwork for organic, greenfield growth, including new entities in the UAE and Africa and an investment holding company in GIFT City, Gujarat.

• Audited consolidated and standalone financial results for Q3 and nine months ended December 31, 2025, were approved by the Board and reviewed by the Audit & Risk Management Committee on February 2, 2026.

• Statutory auditors issued unmodified opinions on both consolidated and standalone results, confirming compliance with Ind AS 34 and SEBI regulations.

Financial highlights

• Total revenue rose 7.9% year-on-year to INR 81.5 billion; core rental revenue up 9.5% year-on-year to INR 52.7 billion.

• Consolidated revenue from operations for Q3 FY26 was Rs. 81,463 million, up from Rs. 75,474 million in Q3 FY25; nine-month revenue was Rs. 243,921 million, up from Rs. 223,957 million year-over-year.

• Reported EBITDA declined 35.6% year-on-year to INR 45.1 billion, but adjusted EBITDA grew 13.5% year-on-year.

• Profit after tax fell 55.6% year-on-year to INR 17.8 billion; adjusted PAT up 14.2% year-on-year.

• Free cash flow for the quarter was INR 7.9 billion, up from INR 3 billion in the previous quarter.

Outlook and guidance

• Order book remains strong, with continued growth expected in towers and tenancies, though CapEx may ease in 2-3 years as growth moderates.

• Revenue growth drivers include tenancy additions, 5G/4G equipment loading, and annual escalations.

• Board to consider shareholder distributions at Q4 results, with all payout options on the table.

• A major customer continues to pay monthly billings and is expected to meet obligations over the next 12 months, with management monitoring the situation closely.

• The company is expanding into African markets, with new subsidiaries incorporated in the UAE and Africa, and an investment holding company approved in GIFT City, Gujarat.