Indus Towers Ltd saw its shares tumble over 4% in early trade on Thursday after the company announced its financial results for the first quarter of FY26. While the telecom infrastructure giant reported steady revenue growth, a sharp decline in profitability and cash flow raised investor concerns. As of 9:19 AM, the shares were trading 4.12% lower at Rs 368.00.
The company posted a consolidated revenue of ₹8,058 crore, reflecting a 9.1% year-on-year (YoY) increase from ₹7,383 crore in the corresponding quarter of FY25. However, despite this top-line growth, key profitability indicators fell across the board.
Indus Towers’ EBITDA dropped 3.4% YoY to ₹4,390 crore, while EBIT slipped 10.1% to ₹2,645 crore. Profit before tax was down by 10% to ₹2,334 crore. Net profit came in at ₹1,737 crore—registering a 9.8% decline compared to ₹1,926 crore in the same quarter last year.
The company also reported a significant drop in operating free cash flow, which fell 17.8% YoY to ₹1,444 crore from ₹1,755 crore. Adjusted Funds From Operations (AFFO), a key metric watched by investors, declined 15.9% to ₹2,840 crore.
Despite the pressures on the bottom line, Indus Towers reported improved return ratios. Return on Equity (pre-tax) rose to 40.8%, up from 34.7% last year, while post-tax ROE improved to 30.8% from 25.7%. Return on Capital Employed also climbed to 28.1%, compared to 20.9% a year earlier.
As of June 30, 2025, the company had a total tower base of 2,51,773 and a tenancy ratio (sharing factor) of 1.63. In a positive development, Indus Towers reversed provisions worth ₹88 crore related to doubtful receivables, aided by successful recovery of past dues.
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