Indus Towers Q2 FY27: consolidated PAT -2.5% YoY, +5% adjusted; revenue +4%, margins steady

Indus Towers' consolidated Q2 FY27 (quarter ended September 30, 2026) print: revenue of ₹8,515.6 Cr, up 4.0% YoY and 1.0% QoQ — at the upper end of the ₹8,400–8,500 Cr range we flagged pre-result and roughly consistent with the 4-6% growth trajectory the company has run since Q1 FY27 (₹8,431.1 Cr, +4.6% YoY). Reported PAT came in at ₹1,792.8 Cr, down 2.5% YoY though up 2.7% QoQ, with basic EPS of ₹6.80 versus ₹6.97 a year ago and ₹6.62 last quarter. The YoY profit "decline" is a base-effect artefact, not operating deterioration. Note 4 shows the "other expenses" line carried a net reversal of doubtful-receivable allowances of just ₹10.1 Cr this quarter versus a ₹195.2 Cr reversal in the year-ago quarter — a ₹185 Cr unfavourable swing embedded in the YoY comparison. Stripping that out, adjusted PAT grew approximately +5.4% YoY, broadly in line with revenue growth. The same base effect explains the apparent margin compression: reported OPM (EBITDA margin) was 55.65% versus 56.90% a year ago, but adjusted for the reversal both periods sit at roughly 55.5%, i.e. flat YoY; OPM also expanded from 54.62% in Q1 FY27. Reported NPM was 21.05% (20.41% QoQ, 22.24% YoY); on an adjusted basis NPM was 20.97% versus 20.70% YoY — modestly better, not worse. The doubtful-debt line ties to Note 5's large customer (facing an AGR-driven cash-flow situation) whose receivables the company continues to monitor on a going-concern basis. Against our pre-result preview, this is a beat: revenue landed at the top of the expected ₹8,400–8,500 Cr band and EBITDA margin of 55.65% cleared the expected 53.6–54% range comfortably. The preview's bullish-but-split analyst backdrop (23 analysts, median target ₹457.50, 47.8% Buy/Strong Buy) is not contradicted by this print. Management gave no formal revenue or margin guidance on the Q1 FY27 call, and none accompanies this filing either — the only prior commentary was an unquantified "strong order book for next 3-4 quarters" and a note that Africa rollout financials/unit economics remain deferred pending MSA finalization; neither is resolved in this release, and no separate management press release was available to extract framing from beyond the regulatory filing itself. Corporate developments this quarter (new director appointment July 31, ESG rating moving up with Crisil but down slightly with SES on September 1, trading window closure September 23) are routine governance items with no direct bearing on the P&L. The Board also confirmed a ₹3,693.1 Cr dividend payout in the half year (₹14/share final dividend for FY26, approved at the August 19, 2026 AGM), consistent with management's "steady and progressive" dividend framing from the prior concall. Standalone and consolidated results are nearly identical this quarter (revenue ₹8,515.0 Cr standalone vs ₹8,515.6 Cr consolidated; PAT ₹1,798.6 Cr vs ₹1,792.8 Cr) — the Dubai holding entities and African subsidiaries incorporated between December 2025 and January 2026 are not yet contributing materially at the P&L level, consistent with management's prior comment that Africa unit economics are still pending.