Informist, Thursday, Jul. 31, 2025

By Anjana Therese Antony

MUMBAI - Indus Towers Ltd. reported better-than-expected earnings for the June quarter, supported by a healthy addition of co-locations and towers. While its top line posted the fastest sequential growth in eight quarters, the bottom line declined for the second consecutive time.

The tower maker's consolidated net profit fell over 2% sequentially to INR 17.37 billion, but was above the Street's estimate of INR 16.67 billion. Its consolidated revenue grew more than 4% to INR 80.58 billion, also higher than the consensus estimate of INR 80.08 billion. Compared to the year-ago period, the bottom line declined almost 10% while the top line rose 9%.

The sequential fall in the bottom line is because of a high base and seasonally higher power costs. The company received a write-back of just INR 880 million as provisions for doubtful receivables in the reporting quarter compared to a write-back of INR 2.30 billion a quarter ago, leading to a high base.

Indus Towers added over 2,400 towers taking the total to 251,773 units. But this was lower than analysts' expectation of 3,000-3,600 tower addition for the reporting quarter and sharply lower than the 14,907 towers added in the March quarter. It also added more than 5,700 co-locations in the June quarter taking the total to 411,212 units. Co-locations are facilities run on a shared basis with other companies.

The Haryana-based company's consolidated earnings before interest, tax, depreciation, and amortisation fell 0.1% on quarter and 3.4% on year to INR 43.90 billion. EBITDA margin shrunk significantly by 240 basis points on quarter to 54.5%.

After three consecutive quarters of sequential growth in sharing revenue per tower per month, the metrice fell 2.3% to INR 67,036 in Apr-Jun. Sharing revenue per operator per month also declined sequentially after rising for at least four consecutive quarters, down almost 2% at INR 41,132.

Indus Tower's capital expenditure for the latest quarter declined sequentially after it had risen a whopping 83% in the previous quarter. The capital expenditure fell over 13% to INR 19.48 billion from INR 22.44 billion a quarter ago. Of this, INR 5.51 billion was capital expenditure for maintenance purposes, up 2% from the previous quarter.

The company released its quarterly results after market hours Wednesday. Its shares closed at INR 383.80 on the National Stock Exchange Wednesday, down 1.7%. Indus Towers post-earnings call with analysts is scheduled at 1430 IST Thursday and investors will closely monitor the management's comments on receivables from Vodafone Idea and the business outlook. End

Edited by Vandana Hingorani

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.