💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 5.3% YoY to INR 30,122.8 Cr in FY25. Sharing revenue per tower was INR 67,422 (down 5.1% YoY) and sharing revenue per operator was INR 40,856 (down 0.8% YoY). In Q2 FY26, reported gross revenue grew 1.6% QoQ while core revenue grew 2.6% QoQ.

Geographic Revenue Split

Historically 100% India-based; however, the company incorporated a Wholly Owned Subsidiary in the UAE on December 08, 2025, to expand its digital infrastructure platform internationally.

Profitability Margins

Net Profit Margin improved to 33.0% in FY25 from 21.1% in FY24. Operating Profit Margin rose to 69.2% in FY25 from 51.4% in FY24. Q2 FY26 PAT was INR 1,840 Cr, down 17.3% YoY but up 5.9% QoQ.

EBITDA Margin

EBITDA Margin was 69.2% in FY25, up from 51.4% in FY24, driven by a 41.9% increase in EBITDA to INR 20,844.7 Cr. Q2 FY26 EBITDA margin was 56.3%, lower by 9.4 percentage points YoY due to lower provision write-backs (INR 0.9 billion vs INR 10.8 billion in Q2 FY25).

Capital Expenditure

Annual capex is projected at over INR 7,000 Cr for the medium term to maintain and upgrade the existing 2.49 lakh towers and support 5G rollouts. Q2 FY26 saw a sequential increase in capex which impacted free cash flow (INR 300 Cr).

Credit Rating & Borrowing

CRISIL Ratings assigned a 'Stable' to 'Positive' outlook, factoring in parent linkage with Bharti Airtel (BAL) which holds a 50.005% stake. External debt reduced to ~INR 4,800 Cr as of December 2023 from ~INR 5,500 Cr in March 2022.

⚙️ Operational Drivers

Raw Materials

Steel and Galvanized Iron for tower structures (2.49 lakh units), and Diesel for backup power. Electricity is a major utility cost driven by increasing data consumption.

Key Suppliers

Not disclosed in available documents, though Bharti Airtel (BAL) acts as a primary parent and service consumer.

Capacity Expansion

Macro tower portfolio reached 249,305 and co-locations reached 405,435 as of March 31, 2025. Added 18,901 macro towers and 3,076 lean towers in 9M FY24.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, energy-efficient initiatives are being implemented to curb diesel consumption and manage utility costs.

Manufacturing Efficiency

Closing sharing factor declined to 1.63x in FY25 from 1.68x in FY24, indicating a decrease in tower utilization efficiency.

📈 Strategic Growth

Expected Growth Rate

5.30%

Growth Strategy

Expanding the macro tower portfolio (249,305 units) and lean towers (13,878 co-locations) to capitalize on 5G rollouts, while diversifying into international markets through the UAE subsidiary and optimizing costs like rates and taxes.

Products & Services

Macro towers, lean towers, co-location services, and power/maintenance for telecom equipment.

Brand Portfolio

Indus Towers, Smartx Services.

New Products/Services

Leaner towers (13,878 co-locations) and digital infrastructure platform services to support network densification.

Market Expansion

Incorporation of a Wholly Owned Subsidiary in the UAE (December 2025) to explore international digital infrastructure markets.

Market Share & Ranking

Largest player in tenancies (4.05 lakh) and second largest in towers (2.49 lakh) in India.

Strategic Alliances

Bharti Airtel (BAL) is the parent company with a 50.005% stake, providing strong operational and financial linkages.

🌍 External Factors

Industry Trends

The industry is growing through 5G rollouts and network densification; however, it has seen significant consolidation, reducing the average tenancy ratio from 2.29x (2018) to 1.63x (2025).

Competitive Landscape

Second largest tower player; faces competition from other tower infra companies but benefits from parent BAL's market share growth (~400 bps increase).

Competitive Moat

Durable advantage through a massive network of 2.49 lakh towers and long-term MSAs (8-10 years) with exit penalties, making it difficult for competitors to displace existing tenancies.

Macro Economic Sensitivity

Data consumption growth drives demand for co-locations; however, higher electricity requirements for network infrastructure impact margins.

Consumer Behavior

Shift toward high-speed 5G data increases the need for more cell sites and lean towers.

Geopolitical Risks

Not disclosed in available documents, though UAE expansion introduces international regulatory exposure.

⚖️ Regulatory & Governance

Industry Regulations

Subject to telecom sector regulations and pollution norms for diesel generators; exposed to regulatory risks if network equipment disposal is not managed.

Environmental Compliance

Focus on curbing diesel consumption and 100% safety training; lost time injury frequency improved to 0.76 in FY24 from 1.14.

Taxation Policy Impact

Effective tax rate reflected in 33.36% post-tax ROE compared to 44.19% pre-tax ROE in FY25.

Legal Contingencies

Provisioning of INR 5,300 Cr for doubtful receivables in FY23; recovery of INR 5,227 Cr by FY25; ongoing monitoring of MNO payment obligations (INR 2.1 billion cleared in Q2 FY26).

⚠️ Risk Analysis

Key Uncertainties

Potential exit of a large tenant or further industry consolidation could impact the 1.63x sharing factor and revenue per tower.

Geographic Concentration Risk

High concentration in India (100% of revenue historically), with UAE expansion just beginning.

Third Party Dependencies

30-35% revenue dependency on tenants with weak credit profiles, posing risks to receivables quality.

Technology Obsolescence Risk

Rapid shift to 5G requires continuous maintenance and upgradation capex of >INR 7,000 Cr annually.

Credit & Counterparty Risk

Net receivables improved to 62 days after INR 5,300 Cr provisioning; collection of INR 2.1 billion in Q2 FY26 from past dues indicates improving quality.