Indus Towers Ltd. (INDU Towers Ltd.) reported very solid first-quarter financial results in the first quarter of FY2026-27 despite revenue growth at a relatively constant rate, and net profit was actually slightly higher in the first quarter of FY2026-27 even as revenue continued to rise. The company benefited from strong operational demand for telecom tower operations in the telecom tower business, and profitability margins were a little lower during the quarter.
In the company's quarterly earnings for the period June 30, 2026, consolidated net profit in terms of cash is Rs 1,746 crore as compared to Rs 1,737 crore in the same quarter in the previous year. This is only a 0.5% year-on-year increase, which indicates that business volumes improved, but operating costs increased, so overall earnings were lower.
The company also delivered good top-line growth. Revenue from operations rose 4.6 per cent year-on-year to Rs 8,431 crore from Rs 8,058 crore in the same quarter last year. The revenue growth indicates that there is a demand for telecom infrastructure as mobile data consumption and network expansion are still strong across India.
EBITDA Improves But Margin Contracts
Indus Towers’ EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) rose 3% year-on-year to Rs 4,521 crore, compared to Rs 4,390 crore in the year-ago period.
And in absolute terms, EBITDA was higher than last year, but EBITDA margin fell to 53.6 per cent from 54.5 per cent. That might mean operating expenses increased faster than revenue in the quarter.
The company also reported an increase in other income, which was Rs 121 crore compared to Rs 85 crore in the corresponding quarter of FY26.
Strong position in India’s Telecom Infrastructure
Indus Towers remains one of India’s largest telecom tower companies that provide passive infrastructure services to major telecom operators everywhere in the country. With 4G and 5G networks growing in scale, infrastructure companies like Indus Towers will benefit from increased tenancy and network deployments.
The long-term outlook for telecom infrastructure is still positive in the long run as data consumption keeps increasing and operators are investing more in network coverage and network expansion, industry experts told us.
Stock Performance
Indus Towers shares were down 1.82 percent to Rs 387.40 in late morning trading on NSE on Monday.
The stock opened at Rs 396.00 against a close of Rs 394.60 and moved in a range of Rs 382.50 to Rs 397.25.
In the last 52 weeks, the share has reached a high of Rs 481.50 and a low of Rs 312.55. Incumbent in the company’s long-term business fundamentals are still supported by the fast-growing telecom sector in India.
Indus Towers presently has a market capitalization of Rs 93,233 crore and is trading at a P/E ratio of 9.97, which makes it one of the most popular infrastructure companies on Indian stock exchanges.
Key Highlights
Net profit: Rs 1,746 crore (up 0.5% YoY). Revenue: Rs 8,431 crore (up 4.6% YoY). EBITDA: Rs 4,521 crore (up 3% YoY). EBITDA Margin: 53.6% (down from 54.5%). Other Income: Rs 121 crore. Market Cap: around Rs 93,233 crore. P/E Ratio: 9.97
Indus Towers’ strong revenue growth and EBITDA margin decline and operating profit were both strong in the second quarter of the year, but the very small decline in EBITDA margins and almost flat profit were indicative of a cost-strapped cost environment for Indus Towers. However, with the telecom industry in India going strong and 5G deployment growing rapidly, and the upcoming 5G rollout is on the way right now, the company is well placed to be able to benefit from future infrastructure demand in the near future.
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