Suyog Telematics Ltd

Financial Performance

• Q1 FY27 revenue: INR 710 million; EBITDA margin 59.3% (incl. electricity top-line).
• PBT: INR 195 million; Net profit: INR 145 million; EPS: INR 12.37.
• Revenue per tower excluding EV: INR 31,000.
• Revenue per tower including EV: around INR 50,000.
• Q1 exit: 6,103 towers; 7,468 tenancies.
• Vodafone Idea: 150 tenancies converted in June; 700 more tenancies in hand.
• Target 3,000 Vodafone Idea tenancies in FY27.
• Operator revenue shares: Airtel 48.1%, Vi 27%, Jio 22.6%, BSNL 2.3%.

Operations Update

• Vodafone Idea orders: ~600+; 95 towers (150 tenancies) converted in June.
• 700 more Vodafone tenancies in hand; aim to convert in Q2.
• Q1 exit: 6,103 towers; 7,468 tenancies; macro sites dominate.
• Total planned towers in next 5 years: close to 3 lakh.

Technology & Capex

• Zinc battery tie-up with GBB Batteries (Kerala); 100% made in India; not manufactured in-house.
• Cost: INR 33,000 per 100H vs lithium INR 48,000 per 100H.
• First batch: 10-15 sites by mid-September.

Funding & Partnerships

• Vodafone funding secured: INR 6,400 crore; SBI consortium to arrange INR 25,000–30,000 crore.
• Vodafone plan: INR 45,000 crore funding; ~30,000 sites; 3,000–3,500 sites/month.
• BSNL CapEx: INR 77,000 crore; 2 lakh sites in 5 years.

Outlook & Guidance

• PAT margin target around 20% for FY27.
• Vodafone revenue share target ~32% of total revenue.
• Tenancy ratio target 1.8x by FY29; current around 1.2x.
• 3 lakh towers planned in 5 years (2.5 lakh VI + 50k others).
• Q4 FY27 revenue run-rate target: INR 100 crore per quarter.
• Fundraising: not decided yet; internal accruals sufficient for now; may raise if orders exceed.

Q&A Highlights

• 3,000 VI tenancies target for FY27; 150 already added in Q1; 700 in hand.
• 80:20 anchor:shared mix expected; 1.8x tenancy target by FY29.
• Fibre revenue share 5–8% of total; mostly recurring.
• MSA framework; fixed charges; daily loadings across operators; no fixed end.
• BSNL 186 sites billing pending; Tejas issues under control; revenue expected in Q2.
• Vodafone revenue share expected to reach ~32% of total.

Meeting Details

• Date and time: August 12, 2026, 03:30 p.m. IST; post-earnings conference call.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Purpose: post-earnings discussion for quarter ended June 30, 2026.

Recording Availability

• Recording available: YouTube link and company website.

Business Overview

• Suyog is a passive telecom infrastructure provider leasing tower assets to telcos.
• Focus on high-power small cells, fiber connectivity, and government-site access.
• Acquired Lotus Tele Infra in March 2025, expanding Delhi NCR footprint to 120 sites.
• Post-acquisition, Lotus Tele Infra becomes a 95% subsidiary of STL; promoter group holds 5%.

Operational Highlights

• Q1 FY27 revenue INR 710 million; EBITDA INR 421 million; PAT INR 145 million.
• EBITDA margin 59.3%; net profit margin 20.4%.
• 4,054 small cell tenancies; 6,103 total towers; 1,017 government site tenancies.
• By 30-Jun-2026, 95 towers and 150 tenancies installed.
• Around 636 Vodafone Idea site orders executed within 13–15 days in June 2026.
• Delhi Circle expansion adds 120 Lotus sites; tenancy uplift expected 50% in 6 months.
• Over 4,000 operational small cell tenancies as of 30-Jun-2026.
• Zinc Bromide battery trial completed; commercialization planned from Sep 2026.
• R&D: wind turbines for cost reduction; FTTH wiring; low-Earth orbit satellite exploration.
• Vi expansion: 60k–70k new sites in 12–18 months; INR 45,000 crore capex plan.
• First tranche of Vi capex secured at INR 6,400 crore; INR 9,000 crore orders placed.
• BSNL capex plan of INR 77,000 crore; 2 lakh additional 4G sites; 5G rollout.
• 98% nationwide coverage targeted by FY2028-29; 2 lakh 4G sites and 5G rollout plan.
• MSA with BSNL for 15 years; potential to cover non-performing IPs.

Financial Performance

• Revenue from operations: INR 709.5 million; YoY 6.1%; QoQ 3.5%.
• EBITDA INR 420.9 million; EBITDA margin 59.3%.
• Net profit INR 145.0 million; net profit margin 20.4%.
• PBT INR 195.1 million; tax INR 50.1 million.
• EPS INR 12.37.
• Accounting policy change (Apr 1, 2026): reimbursements moved to gross revenue; restated.

Capital Structure & Liquidity

• Lotus Tele Infra acquisition cost INR 13.5 crore; STL 95% stake.
• Promoter group holds 5% stake in Lotus post-acquisition.
• DoT Vodafone Idea AGR dues finalised at INR 64,046 crore; liability reduced by INR 23,649 crore.
• Repayment schedule extended to FY 2040-41 improving cash flow visibility.
• BSNL MSA for 15 years; potential to cover non-performing IPs.

Strategic Priorities & Outlook

• Delhi expansion strengthens PAN-India footprint; 120 Lotus sites increase tenancy potential.
• 98% nationwide coverage target by FY2028-29; capex supported by large operator programs.
• Regulatory tailwinds: RoW Rules 2024 and Telecom Act 2023 enable faster deployment.
• Vi capex drive: 6,400 crore secured; 9,000 crore orders placed; 1,930 crore incurred in June quarter.
• Vi network expansion expected to boost new tenancies and co-locations.
• Strategic focus on Small Cell, OFC, FTTH, and ongoing acquisitions.

Risks & Mitigation

• CCTV site pilots show minimal termination risk due to approvals and police support.
• Zinc Bromide battery offers safety and cost advantages; commercialization planned Sept 2026.
• Regulatory shifts reduce admin burden and accelerate deployment (Telecom Act 2023, RoW 2024).

Governance & Leadership

• Lotus Tele Infra acquisition completed; Lotus becomes 95% subsidiary of STL.
• Promoter group retains 5% stake in Lotus post-acquisition.
• Leadership team includes MD Shiv Shankar Lature; CFO Ajay Sharma; Company Secretary Aarti Shukla.

Standalone results

• Standalone Q1 FY27 PAT Rs 1,393.15 lakhs; Basic EPS Rs 11.89; Diluted Rs 11.40.
• Standalone Q1 FY27 PBT Rs 1,875.07; Tax Rs 481.92; PAT Rs 1,393.15.

Consolidated results

• Consolidated Q1 FY27 Revenue from operations Rs 7,095.25 lakhs; Total revenue Rs 7,315.88.
• Consolidated Q1 FY27 PAT Rs 1,449.69; Basic EPS Rs 12.37; Diluted Rs 11.86.
• Consolidated results include Lotus Tele Infra Private Limited (95% stake).

Policy changes & audit

• Policy: gross presentation of reimbursements; effective Apr 1, 2026; comparatives restated.
• Auditors: SPML & Associates; opinion not modified.
• Accrued/provisional revenue for IP lease and government fibre; GST on final invoices.

Key notes & controls

• Note: internal control strengthening planned due to growing business.
• Balances in Loans/Advances, Trade Receivables/Payables subject to confirmation.

Financial results and audit

• Unaudited standalone and consolidated results for quarter ended June 30, 2026 approved with Limited Review Report.
• Limited Review Report by statutory auditors attached.

Governance and appointments

• Re-appointed Subhashita Lature as Whole-time Director for five years from Jan 10, 2027, subject to shareholder approval.
• Re-appointed M/s Avnesh Jain & Associates as Cost Auditors for FY 2026-27; remuneration to be ratified.
• Annexure A provides details of re-appointments.

Dividend and AGM

• Record date Sep 11, 2026 for final dividend eligibility.
• 31st AGM scheduled for Sep 22, 2026 via VC/OAVM.

Accounting policy changes

• Accounting policy updated: electricity and diesel reimbursements presented gross as revenue from operations from Apr 1, 2026.

Other disclosures

• Comparative figures restated to reflect policy change.

Dematerialisation status

• No dematerialisation/rematerialisation requests were received during 01-Apr-2026 to 30-Jun-2026.