Suyog Telematics Ltd Q2 FY27 Results

SUYOGQ2 FY27 ResultsAnnounced 3 Nov, 6:42 pm

Result:Weak· Market: Up#Margin squeeze

Outlook: Cautiously Optimistic · Guidance: Maintained

Metric	Value (₹ Cr)	Q1 FY27	Q2 FY26
Revenue	71.70	1.1%	29.4%
Total Income	74.51	1.9%	31.0%
Expenditure	53.95	0.6%	54.4%
PBT	20.56	5.4%	6.3%
Net Profit	15.34	5.8%	7.7%
OPM	60.09%	0.77pp	15.16pp
NPM	20.58%	0.76pp	8.64pp
EPS	13.09	5.8%	12.0%

View full financials

Revenue grew a healthy 29.4% YoY but PAT fell 7.7% as OPM compressed sharply from 75.3% to 60.1%, signaling cost pressure eroding core profitability despite top-line growth.

Metric	Value (₹ Cr)	Q1 FY27	Q2 FY26
Revenue	71.70	1.1%	29.4%
Total Income	74.51	1.9%	31.0%
Expenditure	53.95	0.6%	54.4%
PBT	20.56	5.4%	6.3%
Net Profit	15.34	5.8%	7.7%
OPM	60.09%	0.77pp	15.16pp
NPM	20.58%	0.76pp	8.64pp
EPS	13.09	5.8%	12.0%

View full financials

SUYOG TELEMATICS LTD · QQ2 FY-2027 · THE CALL

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

The verdict, the claims that held up, the sharpest analyst exchanges, and the risks — the earnings call, decoded from the transcript.

10 Nov 2026 · 6 min read

Verdict

Hold

confidence 6/10

Credibility

Grade B

Hit EBITDA 60.1% and PAT 21.4% targets. Revenue pace to ₹100 Cr is slowing (1% QoQ in Q2 vs acceleration needed).

Short-term outlook

Cautiously Optimistic

next 1–2 quarters

Long-term outlook

Optimistic

multi-year

Strong margin delivery (60% EBITDA, 21.4% PAT) and long-term visibility (Vodafone 45K sites, BSNL 16K sites, 3-year pipeline) support a structural bull case. However, Q2 revenue growth slowed to 1% QoQ despite ₹100 Cr quarterly target claims, and Vodafone execution (only 206 of 600 orders converted) and BSNL billing delays (300 sites still pending, no revenue yet) introduce near-term execution risk. The ₹100 Cr target remains unmet and pace is slipping.

₹71.7 Cr

Revenue · +29.4% YoY

₹15.3 Cr

Reported PAT · −7.7% YoY

Expanding

Margins · vs guidance: Overstated

Did the claims hold up?

Management's claims vs. the numbers

₹100 Cr quarterly revenue by Q4 (from Q1 guidance)

OVERSTATED

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

Vodafone 600 orders from June to be delivered in Q2

MISS

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

BSNL 300 sites expected deployment by year-end

MET

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

₹30K revenue/tower maintained despite 2,000+ site additions

MET

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

EBITDA margin 60% (similar to prior quarter)

MET

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

Earnings quality

What changed since the last call

Deltas vs. the prior call

BSNL billing timeline pushed

Downgrade

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

Vodafone delivery pace halved

Downgrade

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

Revenue per tower locked at ₹30K

Neutral

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

The Q&A

Moderately hard. Analysts questioned CapEx deployment risk (Kaustubh Bubna), Vodafone delivery credibility (Ankush Modi), revenue path to ₹100 Cr (Saket Kapoor), and CapEx/tenancy gap (Varun Ghia). Management mostly answered with facts but was evasive on FY27-28 guidance timing (deferred pending operator confirmation).

The exchanges that mattered

CapEx deployment & customer commitment — Kaustubh Bubna

Answered

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

CapEx funding plan — Harshit Khadka

Answered

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

Vodafone delivery vs. target — Ankush Modi

Partial

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.

Revenue guidance path to ₹100 Cr — Saket Kapoor

Partial

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.

BSNL CapEx & billing start — Neeraj Chhajer

Answered

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.

Zinc battery pilot — Ankush Modi

Answered

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

Vodafone share & growth — Parth Sheth

Answered

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

CapEx vs. tenancy gap explanation — Varun Ghia

Answered

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).

Pending Vodafone sites & monthly delivery — Varun Ghia

Answered

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.

Guidance

Forward guidance and management's confidence

₹100 Cr quarterly revenue by Q4 FY27

Medium

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.

₹75 Cr from ₹60 Cr (reached as of Q2)

High

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

EBITDA 60% sustained

High

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

PAT margin 20% for full year

High

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

₹200 Cr H2 CapEx (FY27)

Medium

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

FY27-28 plan to be declared

Low

Management awaiting operator confirmation. No quantified forward guidance given.

Risks the call surfaced

Ranked by how much they should concern a holder

Vodafone execution

High

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.

BSNL billing delay

High

₹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.

Revenue growth deceleration

High

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.

Customer concentration

Medium

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%).

Margin compression

Medium

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.

Management

Score 6/10. Mostly clear on facts (CapEx amounts, BSNL status, Vodafone rollout pace). Evasive on FY27-28 guidance (deferred pending operator confirmation). Numbers consistent (revenue per tower ₹30K, margin 60%) but tone cautious on near-term delivery. Hit EBITDA 60.1% and PAT 21.4% targets. Revenue ₹100 Cr guidance pace slipping (only 1% QoY in Q2 vs acceleration expected). Vodafone delivery 34% of expected (206 of 600). BSNL billing delayed; CapEx deployed but revenue not recognized.

What to watch next

1 · Q3 FY27 (Oct-Dec 2026)
BSNL 300 site deployment completion & billing start
2 · Q3 FY27
Vodafone revenue ramp (356 tenancies, 6 months' revenue catch-up)
3 · Mar 2027 (FY27 close)
₹100 Cr quarterly run-rate target (MD's stated goal for Q4)

The ₹100 Cr target remains unmet and pace is slipping.

SUYOG TELEMATICS · Q2 FY-2027 · THE VERDICT

Margins Held, but Revenue Growth Stalled—Vodafone Delivery 66% Short of Claims

Suyog reported solid EBITDA and PAT margins this quarter, hitting full-year targets. But revenue growth collapsed to 1% QoQ, Vodafone delivery fell to 34% of promised, and the path to ₹100 Cr quarterly revenue by year-end is in doubt.

10 Nov 2026 · 6 min read

PAT YoY

-7.7%

₹15.3 Cr despite revenue +29.4%

QoQ growth

+1.1%

from ₹70.95 Cr in Q1

EBITDA margin

60.1%

met 59.3% prior target

PAT margin

21.4%

beats 20% full-year target

The quarter presents a textbook credibility gap: margins are hitting targets, but revenue growth has stalled. Suyog delivered ₹71.7 Cr in Q2, up 29.4% year-on-year—a solid top-line headline. But sequentially, the quarter added only ₹0.75 Cr from Q1, a 1.1% rise. That creeping pace contradicts management's spring guidance that ₹100 Cr in quarterly revenue was imminent. More troubling: PAT declined 7.7% year-on-year despite the headline revenue gain. The operating leverage story that drew investors is not materializing.

The margin resilience story meets the execution reality

Here's what Suyog got right: EBITDA margin held at 60.1%, matching the 59.3% from the prior quarter and confirming guidance. PAT margin reached 21.4%, clearing the 20% full-year target. Per-tower revenue stayed locked at ₹30,000 per month, a gain from the ₹28,000 base achieved through an Airtel infrastructure upgrade. These are not flukes—Suyog's unit economics are working. But the company has deployed ₹150 Cr in capex across H1 (Vodafone rollout, BSNL build) and added only 356 tenancies net. That ₹420 million to add 356 sites is a ratio that doesn't square with management's claims of a ₹100 Cr revenue run-rate imminent. Capex has been front-loaded; revenue has not.

Claims versus what holds up

Management's on-call claims graded against the delivered result

₹100 Cr quarterly revenue by Q4 (from Q1 guidance)

Q2 at ₹71.7 Cr, +1.1% QoQ. Requires 40%+ acceleration in two quarters to target.

Overstated

Vodafone 600 orders from June to be deployed in Q2

Only 206 tenancies converted in Q2. Represents 34% of expected pace.

Contradicted

BSNL 300 sites deployment by year-end

1,800 sites deployed; ~50% billing started; 300 pending due to Tejas/fibre integration delays.

Supported, delayed

Revenue per tower ₹30K maintained across additions

Verified at ₹30K/month. Unchanged sequentially.

Supported

EBITDA 60% and PAT 20% for full year

H1 EBITDA 60.1%, PAT margin 21.4%. Both targets met or exceeded.

Supported

What changed on this call

Three shifts emerged. First, Vodafone delivery pace has halved. Spring guidance implied 600 orders would flow into conversions at a steady clip; Q2 delivered 206 tenancies, or 34% of expected run rate. Management blamed Vodafone's own rollout timeline (operator started 15 June), but the credibility dent is real: a ₹200 Cr H2 capex depends on this operator, and operators control pacing. Second, BSNL billing is deferred. Suyog sank ₹30 Cr into 1,800 BSNL sites; ~50% are billing now, but 300 sites are stuck—Tejas equipment failures and fibre delays are the culprits. Revenue recognition is pushed to Q3–Q4. Third, revenue per tower has flatlined. The ₹28,000 → ₹30,000 uplift via Airtel capex is complete. No further pricing power is coming; new tenancies are signing at ₹30,000 to ₹31,000. The upside case now hinges entirely on volume, not unit economics.

The bull-bear ledger

Long-term visibility: Vodafone has 45,000 sites in a 3-year pipeline; BSNL 16,000 by FY27 close. Structural tailwind is concrete.
Unit economics bulletproof: 60.1% EBITDA, ₹30K per tower, 10+ year customer MSAs with 2.5% escalation.
Q2 execution gap widening: 1% QoQ growth, Vodafone 34% delivered, BSNL 300 sites still pending.
Guidance credibility eroding: ₹100 Cr quarterly by year-end requires 40%+ acceleration that Q2 missed.
Operating leverage inverting: +29.4% revenue YoY, but PAT down 7.7%. Cost inflation outpacing pricing.
Customer concentration high: Airtel 48.5% + Vodafone 31% = 79.5% of revenue.

Risks, ranked by holder concern

What should worry an investor most, in order

Vodafone delivery pace halved

High

600 orders expected to convert steadily; Q2 delivered 206 (34%). 2,000+ sites pending. H2 CapEx ₹200 Cr depends on operator rollout pace. If Vodafone slows further, revenue target misses and capex becomes stranded.

BSNL integration stalled

High

₹30 Cr capex deployed; 300 sites not billing due to Tejas equipment and fibre issues. Revenue deferred. Suyog has no control over customer's integration timeline. If delays extend past Q4, ₹100 Cr target is unachievable.

Revenue growth decelerating despite capex

High

H1 capex ₹150 Cr, but QoQ growth 1%. Operator dependency is compressing organic growth. At this pace, ₹100 Cr quarterly is a 2027–2028 target, not 2026.

PAT margin compression YoY

Medium

Revenue +29.4% YoY but PAT -7.7%. Cost inflation (site lease, power, fibre) is eating gains. MSA 2.5% escalation is insufficient against 15%+ cost inflation in many markets.

Customer concentration

Medium

Airtel 48.5% + Vodafone 31% = 79.5% of revenue. Loss of either customer or major capex cut would crater top-line. Jio only 19.5%, too small to offset.

How the market is positioned

The stock has been demolished. Suyog peaked at ₹1,968 and now trades at ₹513.1—a 73.9% drawdown. It sits below its 20-day (₹522.9), 50-day (₹617.6), and 200-day (₹712.6) moving averages. RSI at 41.7 is neutral, neither oversold nor bouncing. Volume is declining, a sign neither buyers nor shorts are convinced of a turnaround. Most revealing: foreign institutional investors have exited en masse. FII ownership fell from 3.05% in Q4 FY25 to 0.67% in Q1 FY27—an 80% trimming of their position in 18 months. Domestic institutions are absent (DII: 0%). Promoters hold 51.64%, a steady position, suggesting management still believes. But the FII exodus is the market's honest verdict: the guidance path is not credible, execution headwinds are real, and near-term catalysts are doubtful. The market has priced in mediocrity: margin hold, slow growth, operator-dependent capex, and a 2027 or later ₹100 Cr run-rate.

The debate

What to watch next

1 · Vodafone tenancy adds in Q3
Did the June 15 operator rollout start accelerate delivery toward the 1,000+ sites per month claimed? If Q3 shows 400+ tenancies (vs 206 in Q2), the pace is recovering. If below 300, the ₹100 Cr path is unachievable by year-end.
2 · BSNL site integration and revenue start
Will the 300 pending sites go live and start revenue in Q3? Or will integration delays push into Q4? This determines whether H2 revenue can accelerate materially. Continued slippage signals another guidance reset.
3 · H2 capex deployment and tenancy mix
The ₹200 Cr H2 capex plan is operator-dependent. Track: what share of capex went to Vodafone, BSNL, and Jio; and how many tenancies were added per rupee of capex (H1 ratio: ₹420 Cr per 356 tenancies). Deterioration signals capex productivity is declining.

Suyog's margins are real and its long-term visibility is sound. The ₹100 Cr quarterly target by year-end is no longer credible. This is a steady business (EBITDA 60%, PAT 21.4%), not a growth story. The street has priced this in via a 73.9% drawdown and FII exit. Q3 will be the test: watch Vodafone tenancy additions. If Q3 delivers 400+ (vs 206 in Q2), momentum is returning. Below that threshold, the ₹100 Cr target is off the table and guidance will reset to 2027. The number to track is Q3 net tenancy adds; if it's below 300, the quarter will have reset investor expectations.