Suyog Telematics Limited — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Suyog Telematics reported Q3 FY26 revenue of ₹55.9 crores and EBITDA of ₹39.5 crores, with revenue per tower per month showing an upward trend to ₹31,533. Despite current year growth being impacted by operator rollout delays, management expressed high confidence for FY27, citing significant funding commitments from Vodafone and BSNL. The company plans to add 10,000 tenancies in FY27, aiming for a total of 17,000, and has secured funding for initial expansion while managing BSNL-related payment and integration challenges.

Highlights

  • Revenue per tower per month increased from ₹29,000 to ₹31,533, indicating an upward trajectory.

  • Vodafone has secured ₹45,000 crores funding for rollout, and BSNL has ₹28,000 crores allocated for 23,000 new 4G sites in FY27.

  • Suyog Telematics is a preferred partner for both Vodafone and BSNL.

  • Company has enough bank debt approvals and healthy cash flow to fund initial 2,500-3,000 site rollouts.

  • Sustainable PAT margin targeted at 30-32% after full rollout.

Concerns

  • Current year (FY26) revenue guidance of ₹240 crores will not be met due to operator rollout delays.

  • 558 BSNL sites remain unbilled due to integration issues or lack of equipment.

  • BSNL rollout is dependent on material availability from Tejas, with confirmation still awaited.

Key financials

  1. Revenue ₹55.9 Cr
  2. EBITDA ₹39.5 Cr
  3. Revenue per tower per month ₹31,533

What they filed

Q1 FY27: revenue up 1.6%, net profit down 17.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue48 49 50 64 52 +8%53 +8%65 +30%65 +2%
EBITDA35 34 8 39 40 +14%38 +12%40 +400%39 +0%
Net profit20 17 -14 17 17 −15%15 −12%14 +200%14 −18%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed
    we have not done any major rollout in last three quarters.
  • Debt Gross ₹80 Cr
    • New borrowing Priority would be to increase debt at a better interest rate for future rollouts.
    debt is around of ₹80 Cr
  • Liquidity Undrawn ₹70 Cr Company has enough bank debt approvals and sanction letters available.
    we have got enough bank debt approvals, sanction letters available with us.

Guidance & targets

Volume

  • Vodafone Sites added Volume · FY27 · High confidence 3,000-3,500
    So at least from Suyog perspective, we are targeting another 3,000, 3,500 Vodafone sites in FY 2027, which we are very 100% sure will come through now

    — Tushar Shah

  • BSNL Sites added Volume · FY27 · High confidence 5,000-6,000
    And out of 23,000 sites, we are targeting 5,000 to 6,000 sites for BSNL, which we're very sure will come in FY 2027 now post all the declarations.

    — Tushar Shah

  • Total Tenancies Volume · FY27 · High confidence 17,000
    So a closure FY '27 should be close to 17,000 tenancies.

    — Tushar Shah

  • Total Tenancies Volume · FY26 · Medium confidence 7,500-8,000

    Previously 9,000 → 7,500-8,000

    As of now, I think it should be close to 7,500 to 8,000. We are trying to maximise.

    — Tushar Shah

  • Vodafone Towers added per quarter Volume · per quarter (from Q1 FY27) · High confidence 1,000
    See as of now, I can give visibility of Vodafone, which seems around 1,000 towers per quarter.

    — Tushar Shah

  • Tenancies added in H1 FY27 Volume · H1 FY27 · Medium confidence 4,000
    So we are planning around 4,000 tenancies in H1 and 6,000 tenancies in H2 based on operator feedback right now.

    — Tushar Shah

  • Tenancies added in H2 FY27 Volume · H2 FY27 · Medium confidence 6,000

    — Tushar Shah

  • Total Towers Volume · FY27 · High confidence 13,500-14,000
    So tower count should be somewhere around 13,500, 14,000 towers with 17,000 tenancies.

    — Tushar Shah

Revenue

  • Revenue Revenue · FY26 · High confidence will take a hit

    Previously ₹240 crores → will take a hit

    No, we will not maintain ₹240 crores for this year, since the rollout is not done by both the major operator. So revenue will take a hit a little bit, which will recover next year.

    — Tushar Shah

Profitability

  • Revenue per tower per month Profitability · coming one or two quarters · High confidence ₹32,000-₹33,000
    I'm very confident it will reach to level of ₹32,000, ₹33,000, which I've been declaring from past quarter in coming one or two quarters itself

    — Tushar Shah

  • Sustainable PAT Margin Profitability · after rollout of 10,000 tenancies · High confidence 30-32%
    our sustainable PAT is around close to 30%, 32% is a sustainable PAT after rollout of 10,000 tenancies also.

    — Tushar Shah

Debt

  • Gross Debt Debt · FY27 end · Medium confidence ₹150 crores
    At the end of FY 27 near about ₹150 Cr could be there.

    — Ajay Sharma

What to watch in Q4 FY26

Vodafone tower additions

Q1 FY27
Current 43 tenancies in Q3 FY26
Target 1,000 towers per quarter

Why it matters

Vodafone's rollout is a key driver for FY27 growth, and quarterly additions will indicate execution pace.

See as of now, I can give visibility of Vodafone, which seems around 1,000 towers per quarter.

Risks & concerns

  • Delay in operator rollout (BSNL, Vodafone)

    high

    Rollouts from BSNL and Vodafone have been delayed, impacting current year revenue and tenancy additions, though management is now confident for FY27 due to funding.

    Management acknowledged

  • BSNL payment delays and integration issues

    medium

    558 BSNL sites are still unbilled due to integration issues or lack of equipment, and BSNL payments can be delayed, leading to a cautious approach to capping BSNL rollout.

    Management acknowledged

  • Material availability for BSNL rollout

    medium

    BSNL's planned 4G rollout is dependent on active equipment supply from Tejas, and confirmation on this is still awaited, posing a potential bottleneck.

    Management acknowledged

Q&A highlights

7 direct
Flat revenue despite Capex and tenancy additions Direct
The main reason is site rental portion, which is passed through first. So our revenue comprises of IP fees plus site rental. IP fees actual revenue and site rental is pass-through revenue.

Explains why revenue growth appears flat despite physical expansion, attributing it to the pass-through nature of site rentals for BSNL sites.

Asked by Varun Gia

Revision of FY26 tenancy guidance Direct
As of now, I think it should be close to 7,500 to 8,000. We are trying to maximise.

Indicates a downward revision of the short-term tenancy target for the current fiscal year (FY26) from a previous 9,000 to 7,500-8,000 due to operator delays.

Asked by Varun Gia

Revision of FY26 revenue guidance Direct
No, we will not maintain ₹240 crores for this year, since the rollout is not done by both the major operator. So revenue will take a hit a little bit, which will recover next year.

Confirms that the previously guided revenue target of ₹240 crores for FY26 will not be met, directly linking the miss to delays in operator rollouts.

Asked by Varun Gia

Quarterly rollout plan for 10,000 sites in FY27 Partial
See as of now, I can give visibility of Vodafone, which seems around 1,000 towers per quarter. BSNL I am not committing right now because still we have not got confirmation from which quarter they want to start the rollout.

Provides specific quarterly rollout expectations for Vodafone but highlights continued uncertainty regarding the timing of BSNL's large-scale deployment.

Asked by Deepak Pandey

Material availability for BSNL rollout Direct
So Tejas is the active equipment supplier for BSNL and they have been working very aggressively with Tejas for the immediate availability of material, but still confirmation is awaited from BSNL.

Identifies a critical bottleneck (equipment supply from Tejas) that is delaying BSNL's planned 4G site rollout, impacting Suyog's potential business.

Asked by Deepak Pandey

Funding requirement beyond 3,000 sites Direct
Once we roll out 3,000 sites, there are multiple factors, which will impact our fundraising plan. One is we'll have a much better cash flow because 3,000 sites will start giving me revenue immediately. So there will be better cash flow, then first, obviously, our priority would be to increase the debt.

Outlines the company's capital allocation strategy, indicating a preference for debt financing over equity for future expansion, supported by improved cash flow from initial rollouts.

Asked by Deepak Pandey

Data center project revenue (₹35 crores) not recognized in Q3 Direct
So again, you are correct. There is no portion which has come in Q3, the reason being like my tower rollout have got delayed. Same way the data centres are also dependent on the operators like BSNL, Vodafone for their business.

Clarifies that the delay in recognizing revenue from the ₹35 crore data center project is linked to broader operator rollout delays, impacting diversification efforts.

Asked by Vansh Solanki

Confidence in achieving FY27 targets given past delays Direct
Now the second part of your question, how confident I am in FY '27? I think I'll have to ask a few questions to you so that everyone understand why I'm confident. Have you heard about ₹45,000 crore investment by Vodafone in the next three years?

Management addresses investor skepticism about repeated delays by emphasizing recent, concrete funding commitments from major operators as a basis for their high confidence in FY27 targets.

Asked by Darshil Pandya

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

Suyog Telematics reported Q3 FY26 revenue of ₹55.9 crores and EBITDA of ₹39.5 crores. The company maintained strong EBITDA margins. Revenue per tower per month increased from ₹29,000 to ₹31,533, showing an upward trajectory after a dip in Q3 last year due to unbilled BSNL sites. This improvement reflects the billing commencement for some of the previously unbilled sites.

Operator Rollout Delays and Future Outlook

Rollouts from major operators like Vodafone and BSNL have experienced delays, impacting Suyog's current year growth. However, management expressed high confidence for FY27, citing Vodafone's declared ₹45,000 crores investment over three years and BSNL's ₹28,000 crores allocation for 23,000 new 4G sites. Suyog aims to add 10,000 tenancies in FY27, reaching a total of approximately 17,000 tenancies, and expects FY27 to be a 'game changer' year.

BSNL and Vodafone Strategy

Suyog is targeting 3,000-3,500 Vodafone sites and 5,000-6,000 BSNL sites in FY27. Vodafone is expected to roll out around 1,000 towers per quarter starting Q1 FY27. BSNL's rollout, however, is contingent on active equipment material availability from Tejas, with confirmation still awaited. The company is cautiously capping its BSNL rollout to manage receivables and avoid over-reliance on a single operator, aiming for a 35-40% market share in a competitive environment.

Revenue per Tower Dynamics

The revenue per tower metric was influenced by the rollout of BSNL sites, which typically have lower pass-through site rental portions (₹3,000-₹7,000) compared to private operators (₹15,000-₹30,000). Despite this, the revenue per tower is recovering and is expected to reach ₹32,000-₹33,000 in the next one or two quarters as billing for the remaining 558 pending BSNL sites commences and Airtel upgrades continue strongly.

Funding and Capital Structure

Suyog has sufficient funds for rolling out 2,500-3,000 sites, with current gross debt around ₹80 crores and ₹70 crores in available sanctions. For further expansion beyond this, the company plans to prioritize increasing debt at better interest rates, leveraging improved cash flow from new sites before considering other fundraising options like QIP. The company targets a gross debt of around ₹150 crores by FY27 end.

Data Center and Fibre Business

A ₹35 crore data center project, which was expected to contribute revenue in Q3, has been delayed due to its dependence on operator rollouts. Management anticipates substantial revenue from the fibre business, mainly related to data centers, in Q4 FY26 or mid-Q1 FY27. Planning for this project has been completed, and material procurement is underway, indicating readiness for execution once operator dependencies are resolved.

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