Analyst Concall
Indus Towers see robust growth in FY26 on strong orderbook
This story was originally published at 17:15 IST on 31 July 2025
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--Indus Towers: Power outages on early monsoon led to 10% rise in diesel use
--CONTEXT: Comments by Indus Towers mgmt in post-earnings call with analysts
--Indus Towers: Shift to renewable energy sources to reduce diesel use
--Indus Towers: Increase in use of diesel affected Apr-Jun margins
--Indus Towers: Expect strong tower additions in FY26
--Indus Towers: See robust growth in FY26 looking at order book
--Indus Towers: Energy margins rose YoY in Q1; plan to improve them further
--Indus Towers: Not averse to increasing debt as and when required
By Arya S. Biju and Pallavi Singhal
MUMBAI/NEW DELHI – Indus Towers Ltd. expects to deliver robust growth in the current financial year ending March, led by strong tower additions, its management said at a post-earnings call with analysts. Based on its current order book across all customers, the telecommunications infrastructure company expects tower additions to remain strong during the year. Further, growing data consumption and adoption of fifth-generation networks will continue to create meaningful growth opportunities for the company as the need for robust passive infrastructure is set to grow steadily, the management said.
In the quarter ended June, Indus Towers added over 2,400 towers, taking the total to 251,773 units. The tower additions during the quarter were lower than analysts' expectations of 3,000-3,600 and sharply below the 14,907 towers added in the March quarter. The company also added more than 5,700 co-locations in the June quarter, taking the total to 411,212 units.
Indus Towers reported a consolidated net profit of INR 17.37 billion for the June quarter, down over 2% on quarter and almost 10% on year. Its consolidated revenue for the quarter grew over 4% on quarter and 9% on year to INR 80.58 billion, led by the healthy addition of co-locations and towers. Its bottom line for the quarter was impacted by a high base in the March quarter and seasonally higher power costs. The company received a write-back of just INR 880 million as provisions for doubtful receivables in the reporting quarter compared to a write-back of INR 2.30 billion a quarter ago, leading to a high base.
During the reporting quarter, the company saw an unusually high number of weather-related disturbances due to the early onset of monsoon, which led to a 10% year-on-year increase in diesel consumption to maintain network uptime. This, in turn, adversely affected the margins, the company's management said. The company's power and fuel costs for the June quarter rose nearly 9% on quarter and nearly 6% on year to INR 30.69 billion.
"We continue to work towards reducing our dependence on diesel by increasing the share of renewable sources to fuel our energy needs," the management said. As part of this, the company entered into a partnership with the Indian Institute of Technology Bombay to jointly advance solar power generation and energy storage technologies.
The company's energy margin for the quarter improved 160 basis points compared to the year-ago quarter, driven by cost optimisation programs and deployment of solar equipment across sites, Indus Towers said. "... the intention is to improve this energy margin as we move on," the company said. "Our energy margins were at negative 4% in Q1 (Apr-Jun) compared to negative 5.2% in Q4 (Jan-Mar) and negative 5.5% in Q1 of the last financial year," the management said.
The company saw a reduction in its debt during the June quarter, driven by cash management, the company said, adding that there is no aversion to increasing its debt as and when required. As of Jun. 30, the company's net debt was INR 167.36 billion, down from INR 180.20 billion from a quarter ago.
The company released its quarterly results after market hours Wednesday. Thursday, its shares closed at INR 363 on the National Stock Exchange, down 5.4% from the previous close. End
Edited by Saji George Titus
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