Margins hold, but revenue growth stalls—Vodafone/BSNL execution to unlock ₹100Cr target

Q2 at ₹71.7 Cr, +1.1% QoQ (not accelerating as implied)

Only 206 tenancies converted in Q2 (34% conversion vs expectation)

1,800 sites total, 300 yet to be built, ~50% with billing started

Revenue per tower stable at ₹30K/month stated, verified via 6,263 towers at ₹71.7 Cr

H1 EBITDA ₹43.1 Cr on ₹71.7 Cr revenue = 60.1% confirmed

Q1 implied ₹100 Cr by Q4 required BSNL + Vodafone both ramping; now BSNL billing deferred to Q3-Q4 due to Tejas/fibre delays.

600 orders expected rapid conversion; Q2 delivered only 206 tenancies (34% conversion). Management cites operator's own rollout dependency (started 15 June).

Prior upgrade (28K → 30K via Airtel CapEx) achieved; now holding steady at ₹30K/month across new additions.

Vodafone CapEx started billing immediately. BSNL has 10-year MSA lock-in; no cancellation risk post-RFI (exit clause = 10 years' payment).

₹120 Cr internal accrual, ₹80+ Cr debt from ICICI Bank sanctioned. FY27-28 plan to be finalized.

Delivered 150 in 15 days (Q1), added 200+ in Q2 (total ~206). Vodafone started rollout 15 June. Can deliver 1,000+ sites/month; delivery depends on Vodafone's quarterly requirement.

MD: Every quarter top line will be ₹100 Cr eventually. Growth pattern: ₹75 Cr from ₹60 Cr in 2 months. By Q3 target ₹100 Cr. Operator rollout dependency.

1,800 total sites; 50% going to billing now. 300 pending. Tejas equipment + fibre issues blocking integration. MSA allows 60-day waiver post-RFI, then auto-billing. Completion by December expected.

Deployed on 4 sites. Monitoring for 1 month, then will decide rollout plan.

Q2: 31% of total revenue. H1: ~30% (up ~3% from Q1). Increased contribution.

30% of FY26 CapEx for site upgrades (28K → 30K revenue per tower). Airtel CapEx mostly. Current FY27 CapEx mainly Vodafone rollout. BSNL 300 sites not yet counted (revenue pending).

2,000+ from Vodafone list. Can deliver 1,000+ sites/month. Monthly rental ₹30K, marginally up to ₹31K going forward. ~600 sites ready for billing once Vodafone integrates.

Q2 at ₹71.7 Cr (only +1% QoQ). Requires 40%+ acceleration in Q3-Q4. Vodafone rollout (2,000+ pending) and BSNL billing (300 sites, expected Dec) are triggers.

Monthly incremental ₹15 Cr growth expected. Q1 ₹60 Cr → Q2 ₹71.7 Cr realized, but QoQ pace at 1% (not 15 Cr monthly jump).

H1 at 60.1%. Operator MSAs predefined on site type/height; inflationary cost offset by tenancy additions.

H1 at 21.4% (beat). Tax provision manageable (₹1.5 Cr advance tax, TDS deducted).

Operator-dependent rollout pace (Vodafone monthly/quarterly requirement, BSNL integration). ₹120 Cr internal accrual, ₹80+ Cr ICICI debt sanctioned.

Management awaiting operator confirmation. No quantified forward guidance given.

Received 600 orders June 2026; only 206 tenancies added by Q2 (34% conversion). 2,000+ sites pending. Management capacity 1,000+/month; operator pace is bottleneck.

₹30 Cr CapEx deployed for 1,800 BSNL sites; only ~50% billing started. 300 sites pending deployment + integration. Tejas equipment failure + fibre issues blocking go-live. No revenue contribution to top line yet.

Q1 was ₹70.95 Cr, Q2 is ₹71.70 Cr (only +1.1% QoQ). Management claims ₹100 Cr quarterly by Q4, which requires 40%+ acceleration. Implied monthly growth of ₹15 Cr not materializing; actual run rate ~₹1.2 Cr/month.

Airtel 48.5% + Vodafone 31% = 79.5% of revenue. Loss of either would severely impact top-line. Jio (19.5%) growing but still small. BSNL minimal (1.1%).

Revenue +29.4% YoY but PAT -7.7% YoY. Despite 60% EBITDA, costs are rising faster than revenue. CapEx cost inflation (site lease, power, fibre) and forex may be headwinds.