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Indus Towers Q2 Results: Net profit declines but revenue up 4%; EBITDA margin narrows 190 bps - Published OnOct 27, 2026 | 20:02 IST - Last Updated OnOct 27, 2026 | 20:02 IST Robust customer demand and solid co-location rollouts drove top-line growth for the telecom infrastructure provider despite narrowing operating margins and a lower profit. How is the management scaling its digital energy management and international ventures to offset these margin pressures? Telecom infrastructure company Indus TowersLtd on Tuesday (October 27) reported a 2.5% year-on-year decline in net profit to ₹1,793 crore for the second quarter of FY27, compared with ₹1,839 crore in the year-ago period. Revenue rose 4% to ₹8,516 crore from ₹8,188 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased marginally to ₹4,633 crore from ₹4,613 crore, while the EBITDA margin narrowed to 54.4% from 56.3% a year earlier. The company's total tower base increased 5.6% year-on-year to 2,70,480 as of September 30, 2026. Its co-location base, which measures the number of telecom operator installations at its towers, grew 5.9% to 4,40,153. ALSO READ | Indus Towers shares gain as it inks MoU with HEG arm for energy storage solutions Indus Towers' return on equity (ROE) before tax declined to 25.3% from 38.4% a year earlier, while post-tax ROE fell to 18.8% from 29%. Return on capital employed (ROCE) decreased to 19.1% from 26.3%. The company said the year-ago quarter included a write-back of ₹195 crore in provisions for doubtful receivables, supported by collections against past overdue amounts. Prachur Sah, Managing Director and CEO, Indus Towers Limited, said, "We delivered a strong quarter, underpinned by sustained customer demand, healthy co-location additions and robust cash flow generation. ALSO READ | Indus Towers shares get a downgrade from UBS; Find out why its cautious on the sector The resulting improvement in tenancy ratio to 1.63 reflects our success in capturing a substantial share of customers' incremental rollouts and reinforces our position as their preferred infrastructure partner. Our focus on a low-cost shared infrastructure model, digital energy management and AI-led transformation is enhancing operational efficiency and customer experience. In Africa, initial rollouts are progressing as planned, with momentum expected to build through the second half of the year. Supported by a healthy order book and a compelling infrastructure value proposition, we remain confident of delivering sustainable growth and long-term shareholder value." ALSO READ | Indus Towers Q4 net profit stays flat at ₹1,793 crore; recommends ₹14 dividend Shares of Indus Towers Ltd ended at ₹384.05, down by ₹1.95, or 0.51%, on the BSE.
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