Indus Towers Q1 FY27 Results (NSE: INDUSTOWER)
Signal: Steady quarter
The read
Indus Towers delivered steady revenue growth of 4.6% YoY driven by tower and co-location additions, but EBITDA margin contracted 88bps to 53.6% — the fifth consecutive quarter of margin compression (from 57% in Q4FY24 to 53.6% now). PAT was nearly flat (+0.7%) as the year-ago quarter included a large write-back. Operating cash flow rose 23% YoY, reflecting disciplined working capital management.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8,431 Cr | 4.6% | N/A |
| EBIT | ₹2,589 Cr | -2.1% | |
| Net profit | ₹1,749 Cr | 0.7% | |
| EBIT margin | 53.6% |
P&L walk
Revenue grew 4.6% YoY to ₹8,431 Cr, EBITDA margin contracted 88bps YoY to 53.6% as costs outpaced revenue, PAT edged up 0.7% YoY to ₹1,749 Cr, supported by a write-back of ₹88 Cr provision in the year-ago quarter (Q1FY26) that inflated the base.
Key positives
- Tower base grew 6.3% YoY to 2,67,611, co-locations up 5.1% YoY to 4,32,250 — steady network expansion by customers.
- Operating Free Cash Flow surged 23.4% YoY to ₹1,781 Cr, indicating strong cash generation and efficient collections.
- International expansion progressing: licenses secured in three African markets, rollouts expected to commence in 2026.
Key concerns
- EBITDA margin contracted 88bps YoY to 53.6%, extending the margin compression trend seen over the past several quarters.
- Return on Equity (Pre-Tax) fell sharply from 40.8% to 25.4% YoY, and ROCE declined from 28.1% to 19.9% — asset intensification or lower profitability.
- Sharing revenue per tower declined 0.9% YoY, indicating pricing pressure or mix shift.
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