Indus Towers (INDUSTOWER) Q4 25/26 earnings summary

Executive summary

• FY 2026 featured strong colocation and tower additions, robust execution, and competitiveness in network expansion opportunities.

• Audited consolidated and standalone financial results for Q4 and FY ended March 31, 2026, were approved by the Board with unmodified audit opinions.

• Improved financial position of a major customer and government support provided visibility for continued business momentum, though the customer’s financial health remains under close watch.

• Board recommended a final dividend of INR 14 per share, resuming shareholder payouts aligned with disciplined capital allocation.

• Expansion into Africa is progressing, with licenses secured in Zambia, regulatory approvals pending in Uganda and Nigeria, and new subsidiaries incorporated in UAE and Africa.

Financial highlights

• Q4 FY 2026 total revenues at INR 81 billion, up 4.8% year-on-year; core rental revenues at INR 53.1 billion, up 5.4% year-on-year.

• Full year FY 2026 gross revenues at INR 325 billion, up 7.9% year-on-year; core revenues up 9% to INR 209 billion.

• Consolidated revenue from operations for FY26 was Rs. 324,931 million, up from Rs. 301,228 million in FY25.

• Full year EBITDA at INR 180 billion, down 13.8% year-on-year, and PAT at INR 71.4 billion, down 28.1% year-on-year, but normalized EBITDA and PAT grew 11.4% and 13% respectively, excluding one-offs.

• Free cash flow generation of INR 11.1 billion in Q4 and INR 37.6 billion for FY 2026.

Outlook and guidance

• Healthy order book and ongoing demand momentum expected to support future growth.

• CapEx remains growth-oriented (70%), with 25% allocated to maintenance and replacement; Africa CapEx to remain modest initially.

• Board aims for steady and progressive dividend distribution, based on annual free cash flow and capital needs.

• Management continues to monitor a large customer’s financial health, with ongoing revenue recognition but no revenue equalisation asset due to the customer’s financial condition.