Indus Towers cuts net profit 2.5% to 1,793 crore rupees in second quarter

Key Facts

Indus Towers reported on October 27 audited consolidated results for the second quarter ended September 30, 2026, posting net profit of 1,793 crore rupees, down 2.5% year on year. Consolidated revenue rose to 8,516 crore rupees, up 4%, while EBITDA increased 0.4% to 4,633 crore rupees, according to a company statement. The differing growth rates show that higher revenue and operating profit did not translate into higher net profit during the period. Consolidated EBITDA margin was 54.4% in the press release, while pre-tax return on equity stood at 25.3%. The results come as the company expands its tower base and co-location sites, alongside an increase in energy and fuel expenses.

Revenue from operations totaled 85,156 million rupees, compared with 81,882 million in the year-earlier quarter, an annual increase of 4%. Co-location revenue accounted for 64% of total revenue, while energy reimbursements made up 36%, according to the quarterly report. The breakdown reflects the company’s reliance on infrastructure co-location activity, alongside energy reimbursement amounts linked to services. Total operating expenses were 38,766 million rupees, equivalent to 45.5% of revenue from operations. Energy and fuel were the largest expense item, at 31,831 million rupees, according to the company’s disclosure.

Energy and fuel expenses rose 3.1% year on year to 31,831 million rupees, from 30,869 million in the comparison period. At the same time, monthly energy cost per tower fell to 39,437 rupees from 40,523 rupees a year earlier. The report puts EBITDA margin at 54.5% in September 2026, compared with 56.3% in September 2025, after reaching 53.7% in June 2026. The margin therefore improved from the previous quarter but remained below its level in the year-earlier period. The company did not explicitly link the margin change to the decline in net profit in the available disclosure; the indicators therefore sit alongside the lower bottom-line profit without a specified causal attribution.

On operations, the total tower base stood at 270,480 on September 30, up 5.6% year on year, while co-location sites increased to 440,153, a gain of 5.9%. The company operates in all 22 Indian telecom circles, and its average sharing factor was 1.62, according to the quarterly report. The broader site base means activity expanded across both towers and network co-location sites during the period. But the increase in these operating metrics coincided with limited EBITDA growth relative to revenue growth and a year-on-year decline in net profit. The disclosure thus presents operating expansion and earnings performance together, without stating that one caused the other.

On the balance sheet, net debt including lease liabilities rose to 175,158 million rupees on September 30, from 141,522 million on June 30. Net debt to last-12-month EBITDA, including lease liabilities, also increased to 0.97 times from 0.78 times in June. On shareholder returns, the company paid a final dividend of 14 rupees per share for fiscal 2025-2026, totaling 36,934 million rupees, following shareholder approval at its annual general meeting. The share closed at 373.20 rupees on the NSE on September 30. These figures set out debt, distributions and the closing share price at the end of the period, and alone do not indicate how the stock moved after the results announcement.

The company said its long-term master service agreements with customers include annual fee escalation clauses, adding that they provide business stability and visibility into future revenue. It also said renewable energy solutions, advanced energy storage, energy efficiency measures and load optimization are expected to deliver long-term benefits and shield the business from rising energy and fuel costs. Indus Towers is scheduled to hold its results call on October 28, 2026, from 2:30 to 3:30 p.m. India time. The company said an audio recording will be available on October 28, while the call transcript will be published on November 3. The call will give management an opportunity to provide further details on the results, operating metrics and costs reported in the filing.