Suyog Telematics Ltd Q2 FY26 Earnings Analysis

- Suyog Telematics targets substantial growth driven by BSNL and Vodafone tower rollouts. - BSNL plans to roll out 20,000+ towers in FY26, with Suyog aiming to add around 5,000 tenancies for BSNL in the current financial year. - Vodafone intends to roll out approximately 15,000 towers; clarity on Vodafone-related tenancy numbers expected by September or October 2025. - Overall, the telecom industry expects to roll out about 35,000 towers in the next two quarters. - Suyog aims to add 7,000 to 10,000 tenancies between Vodafone and BSNL by March 2026. - Revenue guidance for FY26 is around ₹240 to ₹250 crores, with potential to increase to around ₹250 crores in FY27. - Major rollout activity and revenue impact are expected in Q3 and Q4 of FY26. - Upgrades for Airtel and Jio and increasing tenancy ratios are expected to improve revenue per tenancy going forward.

- Significant growth expected from BSNL and Vodafone Idea rollout, targeting 15,000 new tenancies by March-end FY26, with potential addition of 5,000 more subsequently. - Total industry rollout expected to be around 35,000 towers in next two quarters (Q3 and Q4 FY26), supporting substantial expansion. - FY27 revenue guidance approximates ₹250 crores, with major financial impact and cash flow boost anticipated in FY27 due to EPC contracts and tower rollouts. - EBITDA margins remained strong at 75%-76% in Q1 FY26, supported by upgrades and efficient operations. - Revenue per tenancy targeted to improve from current ₹20,000-₹21,000/month to around ₹25,000 by March FY26 and potentially ₹33,000-₹35,000 by end of FY26 due to macro site rollouts and upgrades. - Cash flow expected to improve significantly with EPC contracts and large-scale site rollouts, enabling accelerated growth and profitability.

- Q1 FY26 Capex was around ₹35-40 crores. - Planned rollout of 5,000 new BSNL tower tenancies in FY26, requiring significant capital investment. - EPC contract for building 4,000-5,000 towers for BSNL, with per tower CAPEX of ₹15-20 lakhs and margin of 20-30%. - Total tower rollout plans from BSNL (20,000 sites) and Vodafone (approximately 15,000 sites), requiring substantial funding estimated between ₹500-800 crores. - Company has ₹145 crore loan sanctioned (₹45 crore used) and clear visibility of ₹200-250 crores cash flow available for rollout. - Management confident about arranging balance funding through banks and investors to meet rollout targets. - Focus on upgrades for existing sites (Airtel and Jio) contributing to improved EBITDA and revenue per tenant. - No immediate equity fundraise due to market conditions; alternative funding options being explored.

- As of Q1 FY26, Suyog Telematics has ₹145 crore loan sanctioned, with ₹45 crore utilized and ₹100 crore available for tower rollouts. - The company has a clear visibility of ₹200-₹250 crore cash flow for upcoming rollouts. - Additional funding of around ₹500-₹800 crore is planned to support the rollout of 7,000+ sites. - Discussions and efforts are ongoing with banks and large investors to arrange the balance funding. - A previously announced equity fundraise via preferential allotment was withdrawn due to unfavorable market conditions unrelated to Suyog. - The company is consciously planning to raise funds when valuations improve and is exploring multiple funding options, including equity. - Final fundraising plans and timelines will be clarified after finalizing detailed rollout and funding plans in the coming months (post-August 2025).

- Current tenancy stands at over 7,000 with plans to add around 5,000 tenancies for BSNL in FY '26. - Vodafone rollout plans around 15,000 towers for the year, with clarity expected by September/October. - BSNL's EPC tender floated again for 4,000-5,000 sites after cancellation; submission deadline is August 25, 2025. - Total industry rollout expected around 35,000 towers (20,000 BSNL + 15,000 Vodafone) in the next two quarters. - Management aims to achieve 10,000 total tenancies by end of FY '26 with possible overachievement. - Order book has no significant change; 5,000 targeted BSNL tenancies include both new and pending orders. - EPC contracts are one-time revenues and separate from regular tenancy contracts. - Clear visibility of ₹200-250 crore funding currently available to support deployments. - Further funds of ₹500-800 crore may be required depending on rollout scale and tender wins.