Indus Towers reported a steady September quarter with net profit rising 2.7% sequentially to Rs 17.9 billion on revenue of Rs 85.2 billion. The company improved its EBITDA margin to 54.4% and expanded its tower footprint with 2,900 new macro towers. Management highlighted energy efficiency initiatives and early-stage international expansion into Africa as key operational milestones.
Indus Towers Reports Steady Q2 Growth
Profit After Tax (PAT) reached Rs 17.9 billion for the quarter ended September 30, 2026.
Revenue stood at Rs 85.2 billion, reflecting a 4% year-on-year increase.
Reader Takeaway: Improved EBITDA margins and consistent co-location additions drive growth, though African operations remain in early scaling phases.
What just happened
Indus Towers posted a resilient financial performance for the second quarter of the current fiscal year. The company added 2,900 macro towers and 7,900 co-locations during the period, successfully driving the tenancy ratio up to 1.63. Reported EBITDA rose to Rs 46.3 billion, with margins expanding 80 basis points to 54.4% compared to the previous quarter.
Why this matters
The steady improvement in margins suggests effective cost-control measures, particularly in energy management. By deploying solar solutions across 49,000 sites and increasing lithium-ion battery adoption, the company has managed to structurally lower energy expenses. Additionally, the revenue contribution from early-stage tower deployments in Zambia and Uganda serves as a proof-of-concept for its international growth strategy.
The backstory
The company maintains a robust balance sheet with a net cash position. Investors have been seeking clarity on capital allocation, specifically regarding potential share buybacks or an InvIT structure. While management acknowledged these as possibilities, no immediate policy changes were announced, keeping the focus on core infrastructure expansion and high-tenure customer contracts.
Risks to watch
The decline in 'leaner' tower counts reflects a shift in customer network planning. While management attributes this to a preference for macro towers, investors should watch if this changes future capacity utilization. Furthermore, while African operations have commenced, their scale is currently limited, and their ultimate impact on the bottom line remains a long-term execution story.
Context metrics
Revenue growth was supported by core rental income of Rs 54.5 billion. The adjusted year-on-year EBITDA growth, excluding last year's receivable write-backs, stood at 5.2%. Energy margins showed improvement, moving from negative 4.6% in Q1 to negative 3.6% in Q2.
What to track next
Watch for the upcoming deployment timeline in Nigeria, scheduled for the third quarter. Continued order book visibility and any updates on capital allocation strategies for the company's net cash reserves will remain key interest areas for shareholders.