INDUSTOWER's Q2 FY27 numbers came in mixed, with revenue of Rs. 8,515.60 Cr (+4.00% YoY) and PAT growth of -2.53% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 27, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 8,515.60 Cr (+4.00% YoY) |
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| PAT (Q2) | Rs. 1,792.80 Cr (-2.53% YoY) |
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| EBITDA margin | 54.41% (-192 bps YoY) |
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| EPS (Q2) | Rs. 6.80 (-2.44% YoY) |
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| Market cap | Rs. 102,438.42 Cr |
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| CMP | Rs. 385.30 |
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Quarter Snapshot
Indus Towers delivered mid-single-digit revenue growth (+4.0% YoY) with normalized PAT up 5.36% YoY once the Rs.195.2 Cr year-ago write-back base effect is stripped; reported PAT fell 2.53% and EBITDA margin compressed 192 bps YoY on higher D&A. Cash conversion is the standout: H1 FCF of Rs.4,332.0 Cr covered the Rs.3,693.1 Cr dividend while funding capex, with Q2-only FCF more than doubling QoQ. No prior numeric guidance exists in the filing to benchmark against; Africa rollout KPIs and energy margin remain open items for the October 28 earnings call.
Key Investment Insights
Key Positives
- Revenue grew 4.0% YoY to Rs.8,515.6 Cr (+1.0% QoQ); H1 revenue Rs.16,946.7 Cr, +4.31% YoY
- Normalized PAT grew 5.36% YoY to Rs.1,785.3 Cr after stripping the Rs.195.2 Cr year-ago write-back base effect; adjusted EBITDA grew 4.65% YoY
- EBITDA margin of 54.41% was up 79 bps QoQ (down 192 bps YoY on D&A base effect)
- H1 CFO of Rs.8,196.6 Cr was 2.32x PAT; H1 FCF of Rs.4,332.0 Cr exceeded the Rs.3,693.1 Cr dividend paid while funding capex of Rs.3,864.6 Cr
- Derived Q2-only FCF of ~Rs.2,892.0 Cr, more than double Q1 FY27's Rs.1,440 Cr
- Trade receivables fell 2.95% to Rs.4,793.5 Cr while revenue grew; large customer paying an amount equivalent to monthly billing
- Net-cash balance sheet: borrowings of Rs.1,094.0 Cr vs cash, bank balances and current investments of Rs.4,584.5 Cr
Risk Factors
- Reported PAT declined 2.53% YoY to Rs.1,792.8 Cr and EBITDA margin compressed 192 bps YoY to 54.41%
- D&A rose 7.94% YoY on an elevated capex base, structurally weighing on margins
- Large-customer concentration: note 5 flags a large customer accounting for a significant part of revenue and receivables, with going-concern monitoring language repeated
- Revenue equalisation income is not recognised for the large customer given its financial condition — an unquantified conservative drag on reported revenue
- New Africa and UAE/IFSC subsidiaries swung to a net drag of Rs.5.8 Cr with no operating disclosure yet