Highlights

• Indus Towers FY26 revenue increased 7.9% year-on-year despite lower annual profitability.
• Q4 FY26 co-location additions supported revenue growth across telecom infrastructure operations.
• Board recommended final dividend of Rs. 14 per share for FY26 period.

Indus Towers Limited (NSE:INDUSTOWER) reported consolidated revenue of Rs. 8,101 crore for Q4 FY26, marking a 4.8% year-on-year increase from Rs. 7,727 crore in the corresponding quarter last year. Consolidated EBITDA stood at Rs. 4,464 crore, rising 1.6% year-on-year, while quarterly profit after tax came in at Rs. 1,793 crore, up 0.8%. The company’s EBITDA margin for the quarter was reported at 55.1%. However, return ratios declined compared to the previous year.

Return on Equity (Post Tax) declined to 19.8% from 33.4%, while Return on Capital Employed dropped to 20.2% from 29.1%. Indus Towers stated that Q4 FY25 included a Rs. 226 crore write-back in provisions for doubtful receivables, supported by collections against past overdue amounts.

Source: Analysis by Kalkine

Tower Base Expands Across Telecom Circles

Indus Towers expanded its macro tower base to 264,514 towers as of March 31, 2026, compared to 249,305 towers a year ago. Co-locations increased to 428,014 from 405,435 during the same period.

The average sharing factor remained at 1.62 times during the quarter. Sharing revenue per tower per month declined 2.9% year-on-year to Rs. 66,604. Lean co-locations increased marginally to 14,044 from 13,878 a year ago, while sharing revenue per sharing operator for lean infrastructure rose 8.5% year-on-year.

Annual Profitability Declines Despite Revenue Growth

For FY26, consolidated revenues increased 7.9% year-on-year to Rs. 32,493 crore. However, consolidated EBITDA declined 13.8% to Rs. 17,976 crore, while profit after tax fell 28.1% to Rs. 7,145 crore.

The company attributed operational performance during the year to healthy co-location additions and continued network expansion by telecom customers. Operating free cash flow for the quarter declined 15.3% year-on-year to Rs. 1,066 crore. Adjusted Fund From Operations (AFFO) also declined 3.5% year-on-year to Rs. 2,857 crore.

Source: company filing

Dividend Recommendation and Management Commentary

The Board of Directors recommended a final dividend of Rs.14 per share for FY26.

Prachur Sah, Managing Director and CEO, Indus Towers Limited, said:

“FY26 was a year of strong and well-rounded performance for Indus Towers, driven by healthy colocation additions and continued network expansion by our customers. Improvement in the operating environment, supported by government measures, has strengthened sector stability and our business outlook.

We have advanced our growth agenda, including foray into Africa, while maintaining a disciplined approach to capital allocation and long-term value creation. Reflecting improved business visibility and a strong financial position, the Board has recommended final dividend of Rs. 14 per share.

The Company has institutionalised a strong culture of operational excellence, innovation and transformation, which was pivotal to our Digital and AI-led initiatives in FY26, enhancing operational visibility and network scalability. These capabilities, together with our leadership position and agility, enable us to capitalise on emerging opportunities.”

Key Risks

• Decline in telecom operator spending may impact future tower additions.
• Lower sharing revenue per tower could affect operating margins.
• Regulatory changes may impact telecom infrastructure deployment economics.
• Rising operational and energy costs may pressure profitability metrics.

Summary

Indus Towers (NSE:INDUSTOWER) reported higher quarterly and annual revenue for FY26, supported by co-location additions and telecom network expansion. However, annual EBITDA and profit after tax declined compared to the previous year. The company expanded its tower portfolio and maintained sharing levels during the year. The board also recommended a final dividend of Rs. 14 per share for FY26 amid ongoing infrastructure expansion activities.

FAQs

Q: What was Indus Towers’ revenue in FY26?
A: Indus Towers reported consolidated FY26 revenue of Rs. 32,493 crore, up 7.9% year-on-year.

Q: How many telecom towers did Indus Towers operate in FY26?
A: The company operated 264,514 telecom towers as of March 31, 2026 across India.

Q: What dividend did Indus Towers recommend for FY26?
A: The board recommended a final dividend of Rs. 14 per share for FY26.