Skip to content

    Suyog Telematics Limited

    SUYOG
    Telecommunication·12 Nov 2025
    Management Summary

    Suyog Telematics reported a strong Q2 FY26 with revenue growing 16% YoY to ₹55.4 crores and maintaining a robust 75% EBITDA margin and 30% net profit margin. The company is actively pursuing significant expansion, including 1,000+ sites for Vodafone Idea, a bid for 12,500 BSNL sites (expecting 6,000+), and a ₹35 crore data center fiber project. While the BSNL order faces a slight delay, management is confident in securing funding and executing its ambitious rollout plans, targeting 8,500-9,000 tenancies by FY26 end and 15,000+ by FY27.

    Highlights

    7

    • Q2 FY26 Revenue at ₹55.4 crores, up 16% YoY.

    • Q2 FY26 EBITDA at ₹41.7 crores, with EBITDA margin at 75%.

    • Q2 FY26 Net Profit at ₹16.6 crores, with Net Profit Margin at 30%.

    • Secured 500+ new sites for Vodafone Idea (VIL) with a target of 1,000+ by March 2026.

    • Airtel 5G rollout on 2,500 ULS sites provides an immediate upside of ₹3,000-4,000 per site per month with minimal CapEx.

    • Bid for 12,500 BSNL sites, confident of securing 6,000+ sites.

    • Secured ₹150 crores bank sanction and ₹22 crores from promoter for CapEx funding.

    Concerns

    4

    • BSNL order delayed by 1-1.5 months, now expected in December 2025.

    • Revenue per tenancy decreased from ₹30,000 in Sep 2024 to ₹25,000 in Sep 2025, primarily due to lower rentals from BSNL sites.

    • PAT margin decreased from 42% to 30% due to increasing interest costs and depreciation.

    • Need to arrange an additional ₹400 crores in funding for the full ₹700 crores CapEx for 7,000 towers.

    What Changed2

    vs Q3 FY26

    Guidance items12 → 20 (+8)Risks discussed3 → 4 (+1)

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue₹55.4 Cr+16%YoY
    2. 02EBITDA₹41.7 Cr
    3. 03EBITDA Margin75%
    4. 04Net Profit₹16.6 Cr
    5. 05Net Profit Margin30%

    Order Book

    high confidence

    Total Value

    ₹ 35 crores

    as of 2025-09-30

    quantified

    Execution

    Execute partially this quarter, balance in next quarter.

    Pipeline

    L1 awaiting loa

    BSNL 6,000+ sites allocation, MTNL 1,000+ km aerial fibre tender, VIL 1,000+ sites rollout, BSNL EPC tender for 2,000-2,500 sites

    "Confident of significant order book from BSNL, Vodafone, and MTNL, alongside a confirmed data center fibre project."

    Source:
    Prepared remarks

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    ₹97 crores this quarter · ₹700 crores (next 1.5 years) planned

    internal accruals, bank debt, promoter funds

    Debt

    Debt disclosed

    Cost 9.5%

    M&A

    Lotus Tele Infra

    acquisition · integrated

    M&A

    2-3 companies in Delhi and Rajasthan

    acquisition · pending regulatory

    Liquidity

    Undrawn ₹150 crores

    INR22 crores received from promoter for warrants. Internal accruals and bank debt are sufficient to fund 3,000 sites (INR300 crores). INR500 crores can be arranged easily.

    Guidance & targets

    20
    CategoryTargetPriority
    Revenue
    Full Year Revenue
    ₹250 crores
    		High
    Profitability
    Full Year PAT
    ₹80 crores
    		High
    Profitability
    PAT Margin
    30-32%
    		High
    Profitability
    EBITDA Margin
    70%
    		High
    Profitability
    Net Profit Margin
    30%
    		High
    Tenancy
    Total Tenancies (organic)
    8,500-9,000 sites
    		Medium
    Tenancy
    Total Tenancies (FY27)
    15,000+ sites
    		High
    BSNL Rollout
    BSNL Sites Allocation
    6,000+ sites
    		High
    BSNL Rollout
    BSNL 6,000 Sites Deployment Timeline
    12-15 months
    		High
    VIL Rollout
    VIL Sites Rollout
    1,000+ sites
    		High
    Airtel 5G Rollout
    Airtel 5G ULS Sites Deployment
    2,500 sites
    		High
    Data Centre Project
    Data Centre Fibre Project Materialization
    ₹35 crores
    		High
    MTNL Fibre Allocation
    MTNL Aerial Fibre Allocation
    1,000+ km
    		High
    Revenue per Tenancy
    Revenue per Tenancy (future)
    ₹25,000-27,000 per month
    		High
    Fibre Revenue Contribution
    Fibre Revenue Share
    10-15%
    		Medium
    Revenue Mix
    BSNL Revenue Contribution
    15%
    		Medium
    Revenue Mix
    VI Revenue Contribution
    30%
    		Medium
    Revenue Mix
    Airtel Revenue Contribution
    35-40%
    		Medium
    Revenue Mix
    Jio Revenue Contribution
    20-25%
    		Medium
    Revenue Mix
    Top 2 Telcos Revenue Contribution
    50% minimum
    		High

    BSNL Order Allocation

    Next quarter (by December 2025).
    CurrentBid submitted, expecting allocation in 30-45 days.
    TargetAllocation letter received for 6,000+ sites.

    Why it matters

    Key driver for future revenue and tenancy growth.

    We are expecting the entire BSNL process to get completed in next 30 to 45 days, post which they will do allocation of these sites and we are confident we will get at least 6,000 sites from BSNL across India

    How to verify

    order_book.pipeline[description='BSNL 6,000+ sites allocation']

    Risks & concerns

    4
    RiskSeverity

    BSNL Order Delay

    The significant BSNL order, a key growth driver, has been delayed by 1-1.5 months, now expected in December 2025, impacting FY26 tenancy targets. — Analyst acknowledged

    medium

    Funding Gap for CapEx

    Analyst identified a ₹400 crore funding gap for the total ₹700 crore CapEx; management believes ₹500 crores can be easily arranged, and the balance managed over the 12-15 month rollout period. — Analyst downplayed

    low

    Revenue per Tenancy Pressure

    BSNL rollout, while increasing volume, puts downward pressure on average revenue per tenancy due to lower rentals, though offset by Airtel 5G upgrades and inorganic growth. — Management acknowledged

    medium

    Q2 Seasonality and Deployment Slowdown

    Q2 is historically a slow quarter for telecom deployments due to the rainy season, impacting current quarter performance. — Management acknowledged

    low

    Q&A highlights

    7

    “For BSNL, yes, there is a delay in BSNL order but we all know that BSNL --government companies have their own processes which they need to follow but we had a couple of meetings with CMD in last - before Diwali and post Diwali also and we are very confident that it will go through. There is a little bit delay of 1, 1.5 months. We are expecting that order, which we were expecting in month of October is getting delayed and maybe we will receive it anytime in December. But we are very confident it's going through.”

    Analyst questioned the delay and funding for the significant BSNL order, and management provided clarity on the revised timeline and funding sources.

    asked by Varun Ghia

    3 min read7 chapters

    Detailed Narrative

    01

    Q2 FY26 Financial Performance Overview

    Suyog Telematics delivered a strong Q2 FY26, with consolidated revenue reaching ₹55.4 crores, marking a 16% year-on-year growth. The company maintained robust profitability, reporting an EBITDA of ₹41.7 crores, translating to a 75% EBITDA margin, and a net profit of ₹16.6 crores, achieving a 30% net profit margin. Despite Q2 being a seasonally slow quarter for telecom deployments, the company demonstrated resilience and growth, with H1 FY26 revenue growing 17% YoY.

    02

    Strategic Expansion and Tenancy Growth Targets

    The company is aggressively expanding its infrastructure, targeting 8,500-9,000 tenancies by the end of FY26, with a longer-term goal of 15,000+ sites by FY27. Key drivers include the ongoing rollout of 1,000+ sites for Vodafone Idea (VIL) by March 2026, with 500+ sites already loaded. Additionally, Suyog Telematics has bid for 12,500 BSNL sites and is confident of securing at least 6,000, primarily focusing on more profitable GBT sites, though the BSNL order is delayed to December 2025.

    03

    Airtel 5G Rollout and Revenue Upside

    A significant upside for the quarter is the commencement of Airtel's 5G rollout on Suyog's 2,500 ULS sites across India. This deployment is expected to provide an immediate revenue upside of ₹3,000-4,000 per site per month with minimal CapEx, as the sites are already prepared for upgrades. Airtel aims to cover these 2,500 sites by the end of the financial year, with over 250 sites targeted for November alone, contributing to the company's H2 FY26 growth.

    04

    Funding and Capital Expenditure Plans

    Suyog Telematics has secured a bank sanction limit of ₹150 crores and received ₹22 crores from promoters for warrants, alongside internal accruals, to fund its CapEx. The company estimates a total CapEx of ₹700 crores for 7,000 new towers over the next 1.5 years, with ₹300 crores already secured for 3,000 BSNL sites. Management expressed confidence in arranging the remaining ₹400 crores over the phased 12-15 month rollout period, with current quarter CapEx at ₹97 crores.

    05

    Revenue per Tenancy Dynamics and Stabilization

    The average revenue per tenancy for the quarter was ₹25,000, an increase from ₹22,000 in March 2025 but a decrease from ₹30,000 in September 2024. This fluctuation is attributed to the rollout of 1,800 BSNL sites, which have lower site rentals (₹7,000-10,000) compared to private operators (₹15,000-20,000). However, the upside from Airtel 5G upgrades and the acquisition of Lotus Tele Infra's high-rental sites in Delhi are helping to stabilize the metric, with a target of ₹25,000-27,000 per month going forward⏳.

    06

    Diversification into Fibre and Inorganic Growth

    The company is expanding its service offerings with a ₹35 crore one-time📎 project to lay fibre for data center companies in Mumbai, expected to materialize by December. Additionally, Suyog Telematics is in the final stages of negotiation for inorganic growth opportunities, targeting 2-3 companies in the Delhi and Rajasthan circles. These inorganic growth initiatives are anticipated to add thousands of sites and contribute to the company's FY26 revenue guidance.

    07

    BSNL's Resurgence and Strategic Importance

    Management highlighted BSNL's growing importance, citing its recent achievement of operating cash profit for the first time and its strong subscriber additions in September 2025, surpassing Airtel. BSNL, along with Vodafone Idea, is strategically targeting rural areas, complementing the urban focus of Jio and Airtel. Suyog Telematics aims for BSNL to contribute up to 15% of its total revenue in the long term, while maintaining Airtel at 35-40% and Jio at 20-25%, ensuring a balanced revenue mix.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.