Financial Performance Highlights

  • Revenue from Operations: INR221 crore for FY26
  • EBITDA: INR164.2 crore (INR1,642 million)
  • EBITDA Margin: 74% (improved from previous periods)
  • Profit Before Tax (PBT): INR83.3 crore (INR833 million)
  • Profit After Tax (PAT): INR63.1 crore (INR631 million)
  • PAT Margin: Approximately 30%
  • Revenue Per Tower: Improved to INR31,000 in FY26 from INR29,000 previously

Operational Metrics

  • Total Towers: 6,008 towers in network
  • Total Tenancies: 7,318 tenancies
  • Tenancy Breakdown: Includes 4,000+ small cells (1,000+ government sites)
  • Fiber Network: 6,300 kilometers of aerial fiber network across India
  • Sites Ready for Integration: 189 sites awaiting operator occupancy

Customer Revenue Mix

  • Bharti Airtel: 48% of revenue
  • Reliance Jio: 22.8% of revenue
  • Vodafone Idea: 26.7% of revenue
  • BSNL: 2.5% of revenue

Growth Outlook and Projections

Vodafone Idea Rollout
  • Vodafone Idea has received AGR relief restricting liability to INR64,000 crores with moratorium period
  • Company expects 5,000 new tenancies from Vodafone Idea in FY27
  • Orders anticipated by June-end 2026
  • Major rollout expected in Q3 and Q4 FY27 due to rainy season impact in Q2
  • No bidding process required due to existing Master Service Agreement
  • CapEx per tower estimated at INR12 lakhs (40-meter GBT towers)
  • Total FY27 CapEx estimate: ~INR600 crore
BSNL Rollout
  • BSNL has planned 30,000 sites rollout (10,000 OpEx sites + 20,000 CapEx sites)
  • Currently delayed due to technical issues with Tejas network equipment
  • Issues include network stability problems, SIM latching issues, and backhauling instability
  • BSNL rental rates significantly lower at ~INR7,000 per month vs. INR15,000-25,000 for private operators
  • Company has 15-year Master Service Agreement with BSNL
  • No confirmed timeline for resolution of technical issues
Other Operator Updates
  • Airtel and Jio have not declared major rollout plans for FY27
  • Jio focusing on upcoming IPO
  • Revenue growth in FY26 primarily driven by Airtel upgrades and BSNL billing commencement

Capital Structure and Financing

  • Funding Plan for FY27 CapEx: 50% from internal accruals and existing debt limits, 50% to be determined
  • Debt Planning: To be finalized after receiving Vodafone order confirmation
  • Current Debt: Interest costs at ~9%, increased due to Ind AS 116 accounting treatment
  • Loans and Advances: Increased from INR7 crore to INR34 crore, primarily to subsidiaries for CapEx

Acquisition Strategy

  • Company acquired Lotus Tele Infra in previous year
  • Evaluating new acquisition opportunities for smaller IP companies
  • Funding for acquisitions expected from internal accruals
  • No specific size or timeline confirmed

Other Business Segments

  • Fiber Business: Deployed along with tower rollout, separate billing component
  • Data Center Business: No significant progress currently due to operator CapEx focus on core networks
  • CCTV Business: Acquisition tactic for non-movable sites

Operational Details

  • Tower Deployment Timeline: 45-60 days for ground-based towers, 21-30 days for RTT towers
  • Landlord Agreements: 10-year agreements signed by company
  • Rental Structure: INR20,000/month in metro areas, INR7,000-10,000/month in rural areas (fully reimbursed by operators)
  • Gross Margin Per Tower: 85%
  • Energy Management: Only 2 DG sites; primarily grid-connected with lithium batteries
  • Depreciation Rate: 18% straight-line over 18 years

Accounting and Compliance

  • Ind AS 116 Impact: Increased interest and depreciation costs due to right-of-use accounting
  • Monorail Contract Renewal: 10-year renewal shifted government rent from COGS to depreciation/interest
  • Internal Controls: Strengthening controls framework due to planned scale-up, implementing automation for billing and warehouse management

Management Commentary

  • Confident about Vodafone and BSNL rollout opportunities
  • Focusing on 10 states for expansion including Maharashtra, Uttar Pradesh, and Bihar
  • Expecting FY27 growth similar to FY26 (15-20%) with full benefit of new rollouts reflecting in FY28
  • Exit tenancies for FY27 projected at 12,000-13,000 (subject to Vodafone order confirmation)