Indus Towers Q2 FY26 results: Revenue rises, profit dips

Indus Towers Limited, provider of passive telecom infrastructure, responsible for deploying, owning, and managing telecom towers and communication structures for mobile network operators, announced its audited consolidated financial results for the second quarter ended 30 September 2025. 

For the quarter, the company reported consolidated revenue of Rs 8,188 crore, an increase of 9.7% year-on-year (YoY). Consolidated EBITDA stood at Rs 4,613 crore, a decline of 6.0% YoY, representing an EBITDA margin of 56.3%. Net profit for the quarter was Rs 1,839 crore, down 17.3% YoY.

Return on Equity (pre-tax) improved to 38.9% compared with 38.4% in the corresponding period last year, while Return on Equity (post-tax) remained stable at 29.0%. Return on Capital Employed (ROCE) improved to 26.3%, up from 22.9% a year earlier. During Q2 FY26, the Company recorded a write-back of Rs 195 crore in provisions for doubtful receivables, supported by collections of past dues.

Commenting on the results, Prachur Sah, Managing Director and Chief Executive Officer of Indus Towers Limited, said, “We are pleased to report another quarter of steady performance driven by healthy tower additions and the continued strengthening of our market presence. Our focus on cost efficiency continues to support improvement in profitability. The quarter also marked the announcement of our plan to expand into Africa, a strategic step towards long-term growth by extending Indus Towers’ proven operational expertise into new high-potential markets.

He further aadded, "Our emphasis on automation and artificial intelligence will be crucial in maintaining our leadership position by enhancing efficiency, scalability, and service quality. These efforts will be key to driving sustainable growth and long-term value creation for our shareholders.”

Operational performance

As of 30 September 2025, Indus Towers’ portfolio comprised 256,074 macro towers and 415,717 co-locations, compared with 229,658 towers and 379,236 co-locations as of 30 September 2024, representing an annual addition of 26,416 towers and 36,481 co-locations. On a quarterly basis, the Company added 4,301 towers and 4,505 co-locations compared with the previous quarter ended 30 June 2025.

The average sharing factor stood at 1.63, while the closing sharing factor was 1.62. Sharing revenue per tower per month stood at Rs 67,924, up 1.3% quarter-on-quarter (QoQ) but marginally lower by 0.2% YoY. Sharing revenue per sharing operator per month was Rs 41,714, an increase of 1.4% QoQ and YoY.

For lean co-locations, the count reached 13,963, compared with 13,935 in the previous quarter and 11,360 in the same quarter last year. Sharing revenue per sharing operator per month for lean co-locations was Rs 16,127, down 1.4% QoQ and 1.8% YoY.

Towers and co-locations include 10,380 macro towers and 2,226 lean co-locations acquired from Bharti Airtel Limited during the quarter ended 31 March 2025. These were finalised at 10,093 macro towers and 2,179 lean co-locations, with the difference adjusted in the quarter ended 30 June 2025.

Key Financial Indicators (Rs crore, except ratios)

¹ Revenue, EBITDA, EBIT, Operating Free Cash Flow, and Adjusted Fund from Operations (AFFO) exclude other income.
² Operating Free Cash Flow is a non-Ind AS measure defined as EBITDA adjusted for capital expenditure and repayment of lease liabilities.
³ Adjusted Fund from Operations (AFFO) is a non-Ind AS measure defined as EBITDA adjusted for maintenance capital expenditure and repayment of lease liabilities.