Indus Towers Q3 FY26 Results: PAT in line at Rs 1,776 crore, revenue misses Street estimates—Key takeaways

Indus Towers on Monday reported a consolidated net profit of Rs 1,775.9 crore for the quarter ended December, marking a sequential decline of 3.4 per cent, meeting analyst expectations. The Gurugram-headquartered company said higher rollouts and cost measures support its underlying performance during the quarter.

Its fiscal third-quarter revenue came in at Rs 8,146 crore versus Rs 8,188 crore in the previous three months, according to a regulatory filing.

While the company’s net profit was in line with estimates, its top line missed the mark.

According to Zee Business research, Indus Towers was estimated to log a quarterly net profit of Rs 1,774 crore with Rs 8,266 crore in the top line.

For the quarter ended September 30, the company had reported a net profit of Rs 1,839.3 crore.

The telecom infra firm logged consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 4,509 crore, a quarter-on-quarter drop of 2.3 per cent.

Its EBITDA margin — a key measure of profitability — stood at 55.3 per cent for the October-December period, from 56.3 per cent three months ago.

With a tower count of 2,59,622 units, the company claims to be one of the largest tower infrastructure providers in the country having a presence in all of its 22 telecom circles.

the portfolio marked an increase of 3,548 units during the quarter.

“Our performance this quarter remained robust, supported by an increase in colocations and sustained improvements in profitability. We continued to advance the integration of digital technologies, automation, and AI-driven capabilities throughout our operations, resulting in improved asset visibility, enhanced operational control, and greater execution speed,” said Prachur Sah, Managing Director and CEO, Indus Towers.

He also said that the government’s recent measures on adjusted gross revenue (AGR)-related dues of “a major customer” are expected to aid its financial stability “which bodes well for us”.

“With our commitment to operational excellence, prudent investments, and a customer-focused approach, we remain focused on garnering a larger share of our customers’ rollouts,” Sah added.

The firm’s average sharing factor came in at 1.62 times in Q3 as against 1.63 times in Q2 while its closing sharing factor remained unchanged sequentially at 1.62 times.

What is sharing factor and what does it indicate?

A key metric, sharing factor is a simple yet crucial efficiency metric, indicating the proportion of tenants against towers. For instance, one tower with one operator has a sharing factor of 1.0. In simple terms, it tells you how many telecom service providers are utilising the same tower.

Earlier on Tuesday, Indus Towers shares rose 1.9 per cent to close at Rs 432.1 apiece on BSE, in a Mumbai market that recovered nearly half of the previous day’s losses as the market digested Budget announcements.

At the current level, the Indus Towers stock has declined 0.8 per cent so far this year, better than a 4.1 per cent fall in the Nifty50.