💰 Financial Performance

Revenue Growth by Segment

The company achieved a 23.1% YoY growth in annual sales, reaching INR 192.57 Cr in FY 2025 compared to INR 166.61 Cr in FY 2024. In Q2 FY 2026, revenue from operations grew 16% YoY, while H1 FY 2026 showed a 17% YoY increase, driven by increased tower rollouts and the acquisition of Lotus Tele Infra.

Geographic Revenue Split

Revenue concentration remains high with 60-65% generated from Mumbai and Maharashtra. However, the company has expanded its footprint from 12 to 28 circles. The acquisition of Lotus Tele Infra specifically targets the Delhi-NCR region, which is expected to contribute INR 15-16 Cr in annual revenue.

Profitability Margins

Net Profit (PAT) margin was 21.06% in FY 2025, a significant drop from 38.00% in FY 2024. This decline was primarily due to extraordinary ESOP-related notional costs. Excluding these, the company aims to maintain a long-term net profit margin of 30%, which was successfully sustained in Q2 FY 2026.

EBITDA Margin

EBITDA margin improved to 71.5% in FY 2025 from 70.4% in FY 2024. This 1.1% increase is attributed to operating leverage as a significant portion of costs are fixed. In Q2 FY 2026, the company reported a sustained EBITDA margin of 75% (INR 41.7 Cr).

Capital Expenditure

Suyog has planned a substantial capital expenditure of INR 800-900 Cr over the medium term to fund its expansion into new circles and support the rollout of 8,000 new tenancies. FY 2025 saw significantly higher operating cash flows of INR 21.1 Cr compared to INR 1.48 Cr in FY 2024 to support this growth.

Credit Rating & Borrowing

The company maintains an 'Adequate' liquidity rating with a Total Outside Liability to Adjusted Networth (TOLANW) ratio of 0.73 times as of March 31, 2025. Finance costs decreased by 15.04% to INR 16.57 Cr in FY 2025. Interest coverage stood at 2.76 times in FY 2025, down from 6.57 times due to debt adjustments and ESOP impacts.

⚙️ Operational Drivers

Raw Materials

Steel (for tower structures), Galvanized Iron (for poles), and Optical Fiber Cables (OFC) represent the primary material costs, though specific percentage splits per material are not disclosed.

Import Sources

Sourced primarily from domestic markets within India to support nationwide installations across 28 circles.

Key Suppliers

Not specifically named in the documents, though the company interacts with major telecom equipment and material vendors for tower and fiber deployment.

Capacity Expansion

Current infrastructure includes over 120 sites and 140 tenancies from the Lotus acquisition alone. The company plans to add 8,000 new tenancies across India to meet demand from BSNL and VIL. 1,800 tenancies were added in FY 2025.

Raw Material Costs

Material costs are largely tied to EPC contracts where the company deploys towers and hands them over. Rising input costs for steel and fiber are noted as risks that could impact project returns.

Manufacturing Efficiency

Operating leverage is a key efficiency driver; as revenue increases, the fixed-cost nature of the tower business allows for higher EBITDA flow-through (75% EBITDA achieved in Q2 FY 2026).

Logistics & Distribution

Distribution is managed through nationwide operations; however, heavy rains in Q2 typically slow down deployment procedures and logistics.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be achieved through the rollout of 8,000 new tenancies, a strategic focus on BSNL's 4G/5G implementation where Suyog is a 'strong contender', and the integration of the Lotus Tele Infra acquisition. The company is transitioning between an IP-1 model (leasing assets) and EPC contracts (one-time charges with 5-year maintenance).

Products & Services

Telecom towers, poles, Optical Fibre Cable (OFC) systems, small-cell deployment, and tower maintenance services.

Brand Portfolio

Suyog Telematics, Lotus Tele Infra.

New Products/Services

Expansion into small-cell deployment and increased fiberization are expected to contribute to future revenue as 5G momentum grows.

Market Expansion

Expanding from a Maharashtra-centric model to a national presence across 28 circles, with a specific near-term focus on the Delhi-NCR market.

Market Share & Ranking

Positioned as a key mid-tier IP-1 provider, competing against larger players like Indus Towers and ATC by being more flexible with CapEx investments.

Strategic Alliances

Strong partnerships with BSNL for infrastructure sharing and Master Service Agreements with Airtel, Jio, and Vodafone Idea.

🌍 External Factors

Industry Trends

The industry is shifting toward 5G rollout and increased data demand. Regulatory tailwinds like uniform Right of Way (ROW) guidelines are accelerating tower rollouts. The industry is currently 'operator-driven', meaning infrastructure providers' timelines depend on telco CapEx cycles.

Competitive Landscape

Competes with giants like Indus Towers and ATC. Suyog's advantage is its willingness to invest CapEx where larger competitors or smaller players may be hesitant.

Competitive Moat

Moat is built on long-term relationships with government agencies for site permissions and established MSAs with all four major Indian telcos. Sustainability is supported by the high entry barriers of tower CapEx and the 'sticky' nature of long-term lease agreements.

Macro Economic Sensitivity

Highly sensitive to telecom sector health and the financial stability of major operators like Vodafone Idea and BSNL.

Consumer Behavior

Increasing data consumption and the transition to 5G are driving the need for denser tower networks and small cells.

Geopolitical Risks

Minimal direct exposure, though global supply chain disruptions could impact the cost of telecom hardware.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by IP-1 licenses from the Department of Telecommunications and uniform Right of Way (ROW) guidelines which ease site permissions.

Environmental Compliance

Investing in renewable energy initiatives to optimize costs and meet sustainable practice standards.

Taxation Policy Impact

The company follows standard Indian corporate tax rates; profit before tax was INR 56.00 Cr in FY 2025.

Legal Contingencies

No material or serious observations were received from auditors regarding internal control inefficiencies. Secretarial audits confirm compliance with SEBI regulations.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timing of BSNL and VIL rollouts, which have faced historical delays. ESOP-related expenses also create volatility in reported net profits.

Geographic Concentration Risk

60-65% of revenue is derived from the Mumbai and Maharashtra circles, creating a regional risk if local rental policies or regulations change.

Third Party Dependencies

High dependency on the financial health and 'fund arrangement' of telecom operators (BSNL, VIL, Airtel, Jio) to initiate orders.

Technology Obsolescence Risk

Risk of shifting to satellite broadband or other technologies, mitigated by continuous investment in fiberization and 5G-ready small cells.

Credit & Counterparty Risk

Receivables cycle across clients is a key rating sensitivity factor. There were two instances of Letter of Credit (LC) devolvement (regularized in 1-7 days), though LC limits are currently not in use.