Net profit dropped to ₹17.37 billion in FY26, despite an increase in revenue to ₹80.58 billion, due to higher operational costs.
Indus Towers Ltd reported a 9.8% decline in net profit for the first quarter of FY26, with earnings falling to ₹17.37 billion, weighed down by rising operational costs. This comes despite a nearly 9.1% year-on-year increase in revenue, which rose to ₹80.58 billion for the quarter ended 30 June.
The dip in profitability was mainly driven by a sharp rise in total expenses, which climbed 29.2% on-year to ₹36.6 billion. Key cost components included a 5.8% rise in power and fuel expenses to ₹20.68 billion, an 8.2% jump in employee benefit expenses to ₹2.13 billion, and a 2.9% increase in repair and maintenance outlays to ₹3.69 billion.
The company, now a Bharti Airtel subsidiary, also wrote back ₹880 million in provisions linked to overdue payments from Vodafone Idea, one of its major clients. Despite this one-time gain, it was not enough to offset the overall pressure on margins.
Indus continues to recognise revenue from Vodafone Idea, which is currently paying in line with its ongoing monthly obligations. However, due to the telco’s fragile financial health, the company has opted not to account for revenue equalisation assets tied to lease rental straight-lining. This reflects a cautious approach in light of continued uncertainty around Vodafone Idea’s long-term payment capacity.
Indus Towers is among India’s largest passive telecom infrastructure providers and plays a critical role in enabling mobile connectivity through its tower network. While revenue growth remains stable due to anchor tenants like Bharti Airtel and Vodafone Idea, rising operational costs and exposure to financially stressed clients remain key risks.
Looking ahead, cost optimisation and receivables recovery from Vodafone Idea are likely to influence the company’s near-term performance and margin resilience.
