Suyog Telematics Ltd Q1 FY27 Earnings Analysis

- FY27 revenue growth expected to be around 15%-20%, with major rollout benefits materializing in FY28. (Page 15) - Significant tower rollout planned: approximately 5,000 new towers primarily from Vodafone, with deployment mainly in Q3 and Q4 FY27. (Pages 13-14, 15) - Revenue per tower is expected to remain stable between INR31,000 to INR32,000. (Page 13) - Vodafone rollout remains intact with about 5,000 tenancies expected; BSNL rollout uncertain pending resolution of equipment issues. (Pages 17, 18, 22) - Top-line growth to get a boost due to inclusion of EB (energy billing) in revenue from this quarter onward. (Page 22) - Confident about completing rollout in 10 states, including Maharashtra, Uttar Pradesh, and planned rollout in Bihar. (Page 22) - Data center business progress slow currently; expected to emerge as growth avenue in coming years. (Page 17)

- FY27 revenue growth expected around 15-20%, with major rollout in Q3 and Q4; full-year benefits expected in FY28. - EBITDA margins expanded in Q4 FY26, partly due to accounting changes (Ind AS 116). Operating profitability expected to sustain. - PAT margin approximately 30%, sustained year-on-year with INR 631 million PAT in FY26. - Revenue per tower improved to INR 31,000 in FY26; expected to stay around INR 31,000-32,000 in FY27. - Vodafone rollout of approximately 5,000 tenancies anticipated in FY27, contingent on order finalization by June. Additional BSNL rollout awaits resolution of network issues. - Acquisitions planned mainly from internal accruals, expected to add incremental growth without substantial debt. - Data center business still nascent with no material contribution expected in near term; seen as a future growth avenue. - Interest costs influenced by Ind AS 116; real loan interest stable around 9%. - Overall, steady growth in earnings and operating profits expected driven by tower rollouts and upgrades.

- **CapEx for FY27 tower rollout:** Planned rollout of 5,000 towers with an estimated CapEx of INR 12 lakhs per tower, totaling approximately INR 600 crore. (Page 14) - **CapEx Funding:** Around 50% expected to be funded through internal accruals and existing debt limits; remaining 50% funding plans to be finalized post Vodafone order confirmation. (Page 14) - **Vodafone rollout:** Major rollout expected from Q2 with peak activity in Q3 and Q4 FY27; 5,000 tenancies mostly on ground-based 40-meter towers. (Pages 10, 14) - **Acquisitions:** Looking to acquire smaller IP companies funded mostly via internal accruals; no big acquisitions finalized yet. (Page 17) - **No major CapEx currently on data centers:** Business development ongoing, but delayed due to telco CapEx pause. (Page 17) - **Fiber network:** Fiber laid alongside towers as a recurring asset, purchased and sub-leased to operators; part of operational strategy, not a separate major CapEx at present. (Page 19)

- Currently, no finalized financial planning or immediate fundraising is done; the company is awaiting final Vodafone order numbers to decide on the funding strategy. - For FY27 CapEx of around INR 600 crore for adding 5,000 towers, approximately 50% is planned to be funded through internal accruals and existing debt limits. - The remaining 50% funding will be finalized once Vodafone's final order details are received, expected by end of Q1 FY27. - Acquisition funding is expected to come primarily from internal accruals since smaller IP companies are targeted, avoiding the need for external fundraising. - Any future debt or equity raise will depend on rollout orders, particularly from Vodafone and BSNL, and will be communicated once plans are finalized.

- Vodafone rollout order of approximately 5,000 tenancies (around 4,000 towers) expected in FY27; deployment to start mainly from Q2 with a bumper rollout in Q3 and Q4. - Vodafone order timeline delayed from Feb/March to June; orders directly allocated under master service agreement without tender. - BSNL expected rollout plan of around 30,000 sites, but currently delayed due to equipment issues with Tejas network; no confirmation received yet on order finalization or timeline. - Airtel and Jio have not declared any rollouts due to ongoing investments and IPO timelines. - Orders from Vodafone are mostly confirmed, but BSNL orders are pending resolution of technical issues. - The company plans to complete the Vodafone rollout of 5,000 sites within FY27. - Awaiting final clarity from Vodafone and BSNL by Q1 FY27 to finalize targets and funding plans.