Indus Towers reported a 2.5 per cent decline in consolidated net profit to ₹1,793 crore for the quarter ended September 30, even as revenue increased 4 per cent and demand for shared telecom infrastructure continued to grow.
The telecom infrastructure company said its consolidated revenue rose to ₹8,516 crore during the second quarter, while EBITDA edged up 0.4 per cent to ₹4,633 crore. The EBITDA margin stood at 54.4 per cent.
The company said the year-ago quarter had benefited from a ₹195 crore write-back in provisions for doubtful receivables, supported by collections against past overdue amounts. This prior-period item contributed to the year-on-year decline in reported net profit in the latest quarter.
Indus Towers’ tower base increased 5.6 per cent to 2,70,480, while its co-location base grew 5.9 per cent to 4,40,153. Co-location allows multiple telecom operators to use the same tower infrastructure, making it a key measure of network demand and asset utilisation.
The company’s tenancy ratio improved to 1.63 during the quarter. The ratio indicates the average number of tenants using each tower and is closely linked to the economics of shared telecom infrastructure. Indus Towers said strong co-location additions and cash generation supported its quarterly performance.
The results also showed a decline in return ratios. Pre-tax return on equity fell to 25.3 per cent from 38.4 per cent a year earlier, while post-tax return on equity declined to 18.8 per cent from 29 per cent. Return on capital employed fell to 19.1 per cent from 26.3 per cent.
For cities and connected settlements, tower capacity is part of the infrastructure layer supporting mobile coverage, data services and network expansion. The company’s rising tower and co-location numbers point to continued additions by telecom customers, although the financial results also reflect the effect of the previous year’s receivables provision write-back.
Indus Towers Managing Director and Chief Executive Officer Prachur Sah said the company had delivered what he described as a strong quarter, supported by sustained customer demand, healthy co-location additions and robust cash-flow generation. He said the improved tenancy ratio reflected the company’s success in capturing a substantial share of customers’ incremental rollouts.
Sah also said the company was focusing on a low-cost shared infrastructure model, digital energy management and artificial intelligence-led transformation to improve operational efficiency and customer experience. The company said initial rollouts in Africa were progressing as planned, with momentum expected to build during the second half of the year.
Indus Towers said it had a healthy order book and remained confident of delivering sustainable growth and long-term shareholder value. The company did not provide further details in the supplied results report on the geographic distribution or implementation timeline of the planned rollouts.
