Telecom - Infrastructure industry

10 companies · ₹1.5 L cr · 6 with AI deep dives · Q2FY27 report

VIL rollout restarts tenancy growth, but battery costs and VIL funding cap the tower margin rebound

Turning upmargin troughed at 43.7% and has risen for 5 quarters to 46.1%, on positive revenue growth

Revenue YoY: +12.1%
EBITDA margin: 46.1%; +150bps YoY
Price, 1 year: -31.8%; 43% of names up
P/E vs own 5y: -12.5%; 12.4x now

Exhibit 1The quarter in numbers

constant panel of 5 companies above ₹500 cr

aggregate revenue (₹ cr)EBITDA margin (right axis)

Metric	Jun 26	Mar 26	QoQ	Jun 25	YoY	Peak	vs peak
Revenue	11,463 cr	11,321 cr	+1.3%	10,225 cr	+12.1%	11,463 cr	0.0%
EBITDA margin	46.1%	44.1%	+200bps	44.6%	+150bps	73.1%	-2700bps

Revenue

Jun 26: 11,463 cr
Mar 26: 11,321 cr
QoQ: +1.3%
Jun 25: 10,225 cr
YoY: +12.1%
Peak: 11,463 cr
vs peak: 0.0%

EBITDA margin

Jun 26: 46.1%
Mar 26: 44.1%
QoQ: +200bps
Jun 25: 44.6%

Sept 26: 1 of 7 reported so far, so it is not in the trend above.

Breadth: 67% of 6 companies grew revenue year on year (was 60% a quarter earlier) and 67% expanded margin (was 60%).

Exhibit 2What it costs

9.75x - 14.23x across the panel today

The median name trades at 12.4x, -12.5% against this industry's own 5-year median of 14.2x, and -74.7% against its own peak of 48.9x.

Exhibit 3Structure

₹1.5 L cr

Indus Towers Ltd is 67.6% of this industry by market cap. The top 5 are 98.4% and the top 10 are 100%.

large 1mid 1small 4micro 47 above ₹500 cr

Exhibit 4Screen

P/E below the sub-industry median of 12.38x, 5y ROCE above its median of 13.62%, and at least 2 growth triggers stated on the latest earnings call.

Which names clear this screen is premium

The screen runs on stated growth triggers from the latest earnings calls - the same guidance data the stock screener reserves for premium. Premium names every company in this industry that is cheap against its own median and has the triggers behind it.

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Exhibit 5Coverage (10 of 10)

Every company here with a deep dive, topped up by market cap. The rest of the industry is in the appendix.

Company	Mcap	P/E	EV/EBITDA	ROCE	Margin	Rev YoY	Read
Indus Towers Ltd	₹1.0 L cr	14.2x	5.5x	20.9%	55.9%	+4.6%	Unlock
HFCL Ltd	₹38,196 cr

Exhibit 6What managements said

from this industry's latest earnings calls · as of 2026-09-30

mixedVodafone Idea's capex restart drives tenancy additions, but depends on VIL raising capital2 managements

Both tower owners tie their near-term tenancy growth to VIL's rollout. Indus expects colocations to keep outpacing towers (tenancy ratio 1.62). Suyog's FY27 target of 3,000 VI…

Indus Towers (Q1FY27): “We do expect the colocation additions to continue to outpace the tower additions going…”

headwind2 managements tailwind3 managements

Exhibit 7Outlook

The outlook and what resolves next quarter

Where these managements said things are heading, and the dated, checkable events that would change it. Free with an account - 3 full reports a quarter.

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AppendixThe other 0 companies

1-0

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