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    Suyog Telematics Q1 FY27 earnings call

    SUYOG
    Telecommunication·12 Aug 2026
    Management Summary

    Suyog Telematics reported a steady Q1 FY27 with revenue growing 6.1% YoY to ₹70.9 crores and EBITDA at ₹42.0 crores. The company secured significant orders from Vodafone Idea, converting 150 tenancies in June and targeting 3,000 for the full FY27. A key strategic move is the introduction of cost-effective zinc batteries to counter rising lithium prices and optimize CapEx. While optimistic about future growth, management remains cautious regarding BSNL's rollout pace and acknowledges potential Q2 impacts from the rainy season.

    Highlights

    5

    • Revenue increased by 6.1% YoY to ₹70.9 crores (Q1 FY27 vs Q1 FY26).

    • EBITDA grew by 2.19% YoY to ₹42.0 crores (Q1 FY27 vs Q1 FY26).

    • Successfully converted 150 Vodafone Idea tenancies in June 2026, with another 700+ in hand.

    • Introduction of zinc batteries expected to significantly reduce CapEx and operational costs, being the first IP1 company to do so.

    • Maintained a strong EBITDA margin of 59.3% and PAT margin of 20% despite accounting policy changes.

    Concerns

    3

    • PAT margin declined from 25% in Q1 FY26 to 20% in Q1 FY27 due to a VI reversal in the previous year.

    • Q2 rollout may be impacted by the rainy season.

    • BSNL rollout remains slow and uncertain due to equipment and billing issues, leading to a cautious stance from management.

    Key financials

    Single quarter

    07 metrics
    1. 01Revenue₹70.9 Cr+6.1%YoY
    2. 02EBITDA₹42 Cr+2.2%YoY
    3. 03EBITDA Margin59.3%
    4. 04PBT₹19.5 Cr
    5. 05Net Profit₹14.5 Cr

    Order Book

    high confidence

    Total Value

    ₹ 850 tenancies

    as of 2026-08-12

    quantified

    Inflow this qtr

    ₹ 150 tenancies

    Execution

    remaining 9 months of the financial year

    "The company has 850 tenancies in hand, with 150 converted in Q1 FY27, primarily from Vodafone Idea. The target for FY27 is 3,000 tenancies from Vodafone Idea."

    Source:
    Prepared remarks

    Capital allocation

    2
    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Liquidity

    Liquidity disclosed

    The company has enough funds from internal accruals and is not planning major fundraising currently.

    Guidance & targets

    8
    CategoryTargetPriority
    Volume
    Vodafone Idea Tenancies
    3,000
    		High
    Volume
    Total Tenancies
    10,000 plus
    		High
    Volume
    Vodafone Tenancies
    5,000
    		Medium
    Profitability
    EBITDA Margin (with EV)
    59%
    		High
    Profitability
    PAT Margin
    20%
    		High
    Revenue
    Revenue per tower (without EV)
    INR31,000
    		High
    Market Share
    Vodafone Revenue Contribution
    30-32%
    		Medium
    Tenancy Ratio
    Overall Tenancy Ratio
    1.8
    		High

    What to watch in Q2 FY27

    5

    Vodafone Idea Tenancy Rollout Progress

    next quarter
    Current150 tenancies converted in Q1, 700+ in hand
    TargetProgress towards 3,000 tenancies for FY27, especially post-rainy season

    Why it matters

    Execution of Vodafone Idea orders is the primary growth driver for FY27 and beyond.

    we are planning to do 3,000 sites for Vodafone Idea in current financial year.

    Risks & concerns

    4
    RiskSeverity

    Rising Lithium Battery Prices

    Lithium battery prices have almost doubled in 2.5 months (INR33,500 to INR48,000 for 100H), increasing costs and dependency on imports from China. — Management acknowledged

    high

    Dependency on Operator Rollout Execution

    The company's growth plan is dependent on Vodafone Idea and BSNL executing their rollout plans as committed. — Both acknowledged

    medium

    BSNL Rollout Delays and Billing Issues

    BSNL's large-scale rollout is expected to be slow with potential billing issues and delays due to Tejas equipment problems. — Management acknowledged

    medium

    Rain Impact on Q2 Rollout

    The rainy season in Q2 could impact the pace of site conversions and rollouts. — Management acknowledged

    low

    Q&A highlights

    8

    “So, there are 2-3 major advantages of zinc battery. One is in terms of pricing. Lithium prices have gone very high. So, for 100H Lithium pricing is right now costing INR48,000 and which is expected to rise in future also. While zinc battery will cost me around INR33,000 for 100H. We normally use 3 batteries on every site, 300H. Then it will vary up to 600H, 900H also. In terms of efficiency, it will give the same benefit of lithium battery where it will be small in size and it has a fast charging and more backup. A major benefit compared to lithium is its fire resistant.”

    Reveals a strategic initiative to reduce CapEx and operational costs by replacing expensive lithium batteries with cheaper, safer, and domestically produced zinc batteries.

    asked by Guneet Singh

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance Overview

    Suyog Telematics Limited reported a consolidated revenue of ₹70.9 crores for Q1 FY27, marking a 6.1% year-on-year growth compared to ₹66.8 crores in Q1 FY26. Quarter-on-quarter revenue growth was 3.5% from ₹68.5 crores in Q4 FY26. EBITDA stood at ₹42.0 crores, reflecting a 59.3% margin, with a 2.19% YoY growth. The company achieved a net profit of ₹14.5 crores, resulting in an EPS of ₹12.37. The PAT margin for the quarter was 20%, a decrease from 25% in Q1 FY26, attributed to a one-time📎 VI reversal in the prior year.

    02

    Strategic Focus on Vodafone Idea Rollout

    The company began receiving significant orders from Vodafone Idea in mid-June, converting 150 tenancies (equivalent to 95 towers) within the month. Management currently holds 700+ additional tenancies from Vodafone Idea and aims to achieve a total of 3,000 tenancies from this operator in the current financial year. This target is considered highly achievable given Vodafone Idea's aggressive rollout plans and Suyog's strong execution capabilities and preferred partner status. The company expects to see full-year benefits from these tenancies in FY28.

    03

    Pioneering Zinc Battery Technology for Cost Savings

    To counter the nearly doubled prices of lithium batteries (from ₹33,500 to ₹48,000 for 100H) and reduce import dependency, Suyog Telematics is fast-tracking the launch of zinc batteries. These batteries, 100% made in India, offer similar pricing to older lithium batteries and VRLA, providing significant CapEx savings. The first batch for 10-15 sites is expected by mid-September, positioning Suyog as the first IP1 company to deploy this technology, which is also fire-resistant.

    04

    Cautious Outlook on BSNL Projects

    While BSNL has announced a substantial CapEx plan of ₹77,000 crores for 2 lakh sites over the next 5 years, Suyog Telematics maintains a cautious stance. Management acknowledges BSNL's potential but highlights historical issues with slow rollouts, billing problems, and Tejas equipment. The company will only commence rollouts for BSNL once billing is confirmed and equipment issues are resolved, prioritizing a clear operational framework over early commitment to large, unconfirmed projects.

    05

    Accounting Policy Changes and Margin Presentation

    Effective April 1, 2026, Suyog Telematics revised its accounting policies to include electricity reimbursement in its top-line revenue, as required by the GST department. This change has adjusted the reported EBITDA margin from approximately 70% to 59.3% for Q1 FY27, ensuring an apple-to-apple comparison going forward⏳. Revenue per tower, excluding electricity reimbursement, has remained constant at ₹31,000-₹31,500 for the last four quarters.

    06

    Strategy for Tenancy Ratio Improvement

    The company aims to increase its overall tenancy ratio from the current 1.2x to 1.8x by the end of FY28 or early FY29. This improvement will primarily be driven by a focus on macro site rollouts, which typically yield higher tenancies (2-3 per site) compared to small cells. A higher tenancy ratio is expected to significantly improve PAT percentage and EBITDA percentage, leading to a faster return on investment (ROI) for new sites.

    This is an AI-generated summary of a publicly available earnings call transcript.