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.