Indus Towers Q1 FY26 Results (NSE: INDUSTOWER)
Signal: Margin pressure
The read
Indus Towers delivered modest revenue growth (+4.6% YoY) but EBITDA margin contracted for the 4th straight quarter (-650bps YoY to 55.05%) as power & fuel cost pressures and rising depreciation weighed; PAT was essentially flat (+0.5% YoY) as higher other income cushioned the decline. The 4th consecutive quarter of YoY margin compression signals structural cost headwinds — power costs and depreciation are rising faster than revenue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8,431.1 Cr | 4.6% | 4.1% |
| EBIT | ₹4,642 Cr | 3.7% | |
| Net profit | ₹1,745.8 Cr | 0.5% | |
| EPS | ₹6.62 | 0.5% | |
| EBIT margin | 55.05% |
P&L walk
Revenue grew 4.6% YoY to ₹84,311 Mn, driven by incremental co-locations and energy pass-through; power & fuel cost rose to ₹31,953 Mn (37.9% of revenue, +2.2pp QoQ but -0.8pp YoY), while employee cost and other opex remained stable. EBITDA margin compressed 650bps YoY to 55.05% as depreciation (+10.9% YoY) and finance costs (+2.3% YoY) outpaced revenue growth; PAT remained flat at ₹17,458 Mn (+0.5% YoY) as higher other income partially offset margin pressure. EPS ₹6.62 vs ₹6.59 a year ago.
Segments
Single operating segment — wireless communication tower infrastructure; no segment split.
Key positives
- Other income grew 42.4% YoY to ₹1,212 Mn, providing a buffer to operating profit.
Key concerns
- EBITDA margin contracted 650bps YoY to 55.05% — 4th consecutive quarter of YoY margin compression.
- Depreciation rose 10.9% YoY, outpacing revenue growth of 4.6%, indicating ongoing capex cycle pressure.
- Revenue growth decelerated sequentially from +9.7% YoY in Q2FY26 to +4.6% YoY this quarter.
- Power & fuel costs rose 10.6% QoQ, consuming a larger share of revenue sequentially.
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