Indus Towers Q2 FY27 Results (NSE: INDUSTOWER)

27 Oct 2026 · Analysis by Alpha Inflection

Signal: Margin pressure

The read

The key inflection remains margin pressure rather than demand: Q2 revenue grew 4.0% YoY to ₹85,156 million, but EBITDA grew only 1.1% and margin contracted 154bps to 55.8%, the second consecutive quarter of YoY margin contraction after Q1FY27; PAT fell 2.6% to ₹17,918 million despite broadly stable finance costs.

P&L walk

Revenue increased 4.0% YoY to ₹85,156 million, but EBITDA rose only 1.1% to ₹47,492 million as operating margin fell 154bps to 55.8%; depreciation increased 2.7% and PAT declined 2.6% to ₹17,918 million.

Key positives

• Revenue increased 4.0% YoY to ₹85,156 million and 1.0% sequentially to ₹85,156 million, keeping the growth trajectory positive despite deceleration from the prior-year base.
• H1 operating cash flow was ₹81,966 million, up 3.7% YoY and above H1 PAT of ₹35,386 million, indicating cash conversion remained supportive.
• PPE increased to ₹342,950 million and CWIP to ₹8,539 million, while depreciation rose 2.7% YoY to ₹19,438 million; the depreciation-to-asset-base cross-check is clean.
• Standalone PAT of ₹17,986 million was close to consolidated PAT of ₹17,918 million, suggesting no material earnings drag from subsidiaries in the quarter.

Key concerns

• EBITDA margin declined 154bps YoY to 55.8% even as revenue grew 4.0%, with EBITDA growth of 1.1% trailing revenue growth.
• Power and fuel expense increased 7.6% YoY to ₹2,314 million, faster than revenue growth, adding to operating-cost pressure.
• PAT declined 2.6% YoY to ₹17,918 million and EPS fell 2.4% to ₹6.80, showing that stable revenue growth is not yet translating into bottom-line growth.
• The filing states that a large customer contributes a significant share of revenue and outstanding trade receivables; its financial condition and AGR-related funding remain material collection risks.

View original filing

Research and educational content only. Not investment advice.