Summary
Suyog Telematics Limited - Q3 FY 2025-26 Earnings Call Summary Friday, February 06, 2026 10:00 A.M. IST
Event Participants
Executives 5 Ajay Sharma (CFO), Shiv Shankar Lature (MD), Subhashita Lature (Whole-Time Director), Suyash Lature (Business Development Manager), Tushar Shah (Business Head - India)
Analysts 7 Darshil Pandya, Deepak Pandey, Kaustav Bubna, Mahek Talati, Siddharth Bhattacharya, Tanmay Jhaveri, Varun Gia
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹55.9 crores | Flattish QoQ; impacted by delayed rollouts from BSNL and Vodafone Idea (VIL). |
| EBITDA | ₹39.5 crores | Solid margins sustained at ~70.6%; management confirms these levels are sustainable. |
| PAT Margin | ~30% - 32% | Remained stable; target sustainable PAT margin of 30%+ post-expansion. |
| Total Towers | 5,904 count | Includes 1,000+ government sites and recent consolidation of Lotus (Delhi). |
| Total Tenancies | 7,206 count | Up slightly QoQ; addition of 43 tenancies for Vodafone in Q3. |
| Revenue per Tower | ₹31,533 | +8.7% from ₹29,000 in Q3 FY25; driven by BSNL billing integration and Airtel upgrades. |
| Fibre Network | 6,000+ km | Strategic asset for backhaul and data center connectivity. |
| Receivables | ₹52 crores | Reduced significantly from previous quarters; VIL payments streamlined to within 90 days. |
Geographic & Segment Commentary
- BSNL Rollout: BSNL has been allocated ₹28,000 crores in the FY27 budget for 23,000 new 4G sites. Suyog is a “preferred partner” and is capping its target at 5,000–6,000 tenancies to maintain a balanced operator mix and manage receivable risks.
- Vodafone Idea (VIL): Following VIL’s ₹45,000 crore fundraise announcement, Suyog expects massive rollout starting Q1 FY27. Management is targeting 3,500–4,000 VIL tenancies in FY27, with planning and site mapping already finalized.
- Delhi (Lotus Acquisition): Operations in Delhi and Mumbai (MTNL) are being consolidated. The 12,000+ tenancy target for FY27 is on a consolidated basis including these metro circles.
- Fibre & Data Centers: A ₹35 crore data center backhaul project is underway. While revenue did not hit in Q3 due to operator delays, substantial realization is expected in Q4 FY26 and early Q1 FY27.
Company-Specific & Strategic Commentary
- Wait-and-Watch on Rollouts: Growth has been stagnant for three quarters as BSNL and VIL finalized funding. Management expects a “game-changer” FY27 now that BSNL has budget allocation and VIL has secured debt/equity commitments.
- Infrastructure Strategy: Focusing on “six terrains” where Suyog maintains 99.95% Service Level Agreements (SLAs). Management avoids over-expansion into new geographies to protect margins and maintenance quality.
- CCTV/Small Cells: Utilizing 12-meter poles for CCTV (provided free to government) as a “Trojan horse” strategy to secure permissions for small cell subleasing in high-density areas where macro towers are restricted.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Tenancy Addition | 10,000 new tenancies in FY27 | Driven by BSNL (5k-6k) and VIL (3.5k-4k); split 40% in H1 and 60% in H2. |
| Total Tenancies | ~17,000 by end of FY27 | More than doubling current counts; assumes BSNL/VIL execute on stated CAPEX plans. |
| Revenue per Tower | ₹32,000 - ₹33,000 | Expected to rise as remaining 558 BSNL sites are integrated and Airtel upgrades continue. |
| Capital Expenditure | 3,000 sites (Immediate) | Funded via ₹80cr internal accruals, ₹70cr existing debt headroom, and vendor credit. |
Risks & Constraints
| Risk | Context |
|---|---|
| Operator Dependency | Growth is 100% tied to VIL and BSNL rollout schedules. Any further delays in their equipment procurement (e.g., from Tejas) will push Suyog’s targets. |
| Receivable Delays | While VIL is currently paying within 90 days, BSNL (PSU) payments often involve paperwork delays that can strain working capital during high-growth phases. |
| Leverage | Adding 10,000 tenancies will require a fundraise (Equity/QIP) after the initial 3,000-site rollout is completed if debt capacity is exhausted. |
Q&A Highlights
Rollout Visibility
- Question: How confident are you in the 10,000 tenancy target given previous delays? (Tarun Kumar)
- Answer: Confidence stems from public fund allocations (₹28k Cr for BSNL; ₹45k Cr for VIL). VIL material is expected by mid-March, enabling a Q1 FY27 start (Tushar Shah).
Revenue Gap
- Question: Why have revenues been flattish despite adding towers? (Varun Gia)
- Answer: BSNL revenue per site is lower (₹3k-₹5k) than private operators (₹15k-₹30k) because site rentals are lower. Additionally, 558 towers are built but unbilled pending BSNL equipment integration (Tushar Shah).
Financial Headroom
- Question: At what stage will you need to raise fresh funds? (Deepak Pandey)
- Answer: We can build 3,000 more sites using current cash and ₹70cr available debt. For the full 10,000-site target, we will evaluate QIP or preferential issues after seeing Q1 FY27 performance (Tushar Shah/Ajay Sharma).
Market Share
- Question: What is your share of the upcoming 23,000 BSNL sites? (Mahek Talati)
- Answer: We are the “most preferred partner” but are capping our allocation at 5k-6k sites to ensure BSNL does not dominate our revenue mix excessively (Tushar Shah).
Key Takeaway
Suyog Telematics reported a stable Q3 FY26 with revenues of ₹55.9 crores and industry-leading EBITDA margins of ~70%. While the quarter saw flattish growth due to a three-quarter delay in major operator rollouts, management signaled a major pivot for FY27. With VIL securing ₹45,000 crores and BSNL receiving a ₹28,000 crore budget allocation, Suyog plans to more than double its tenancies from ~7,200 to 17,000 in FY27. This aggressive expansion is supported by an increasing revenue-per-tower trend (up to ₹31,533) and a strategic focus on metro “small cells” and backhaul fibre. While the immediate 3,000-site rollout is funded, a potential capital raise looms for the second half of FY27 to sustain this high-growth trajectory. The company remains a high-margin annuity play, contingent on the execution speed of India’s struggling telecom giants.
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