Suyog Telematics Ltd Q3 FY26 Earnings Analysis

- Suyog Telematics targets strong revenue growth with major rollout plans in upcoming quarters, aiming for INR 250 crores revenue in FY26. - Deployment of 5G sites for Airtel and Vodafone rollout (~1,000 sites planned in next two quarters) are key revenue drivers. - Inorganic growth through potential acquisitions is expected to add immediate revenue upside. - BSNL rollout of 6,000 sites over 12-15 months is expected to contribute 15-20% of revenue. - Fibre network projects, including a INR 35 crore data centre fibre project and MTNL tender (L1 bidder), offer additional revenue streams. - Revenue mix target: Airtel 35-40%, Jio 20-25%, VI around 30%, BSNL 15%. - Tenancy growth to reach 8,000-8,500 sites organically in FY26, plus additions via inorganic growth. - EBITDA and PAT margins are planned to be maintained around 70% EBITDA and 30% net profit. - Overall, the market and business outlook are stable with expected revenue and volume growth in both tower and fibre segments.

- Suyog Telematics expects growth driven by 5G site deployments for Airtel, Vodafone rollout (~1,000 sites in next two quarters), and planned inorganic growth via acquisitions. - Targeting revenue of around INR 250 crores for FY26, with confidence on achieving this despite some delays in BSNL rollout. - PAT margin guidance is around 30%-32% of revenue; INR 80-85 crores PAT is projected, achievable through organic and inorganic growth. - EBITDA margins maintained around 75%, with improvements expected due to minimal CapEx upgrades on Airtel sites and addition of fibre projects. - By FY27, tenancy is expected to rise to about 15,000+ sites (doubling from current), sustaining revenue growth and margins. - Fibre business expected to contribute 10-15% of total revenue by 2030, adding significant revenue diversification. - Interest cost around 9.5% expected on debt of INR 250 crores; internal accruals and promoter funding to ease CapEx funding pressure.

- Suyog Telematics plans a CapEx of INR 700 crores over the next 12-15 months for deploying 7,000 towers (6,000 from BSNL and 1,000 from VI). - Funding for INR 250-300 crores CapEx is arranged via internal accruals, promoter funds (INR 22 crores received in October), and bank debt with a sanctioned limit of INR 150 crores. - The company is confident of managing up to INR 500 crores from these sources and may consider equity dilution for the balance depending on rollout progress. - A strategic INR 35 crore fibre project targeting data centre connectivity in Mumbai is in the final stage, expected to close by end of FY26. - Suyog is also pursuing inorganic growth opportunities to boost revenue starting from the acquisition date. - The BSNL rollout of 6,000 sites will be phased over 12-15 months, aligning CapEx deployment accordingly.

- The company plans around INR250 crores debt borrowing for CapEx, particularly for BSNL rollout of 6,000 sites over 12-15 months. - Banks have approved a sanction limit of INR150 crores, with funds not fully utilized yet. - Promoter funds have contributed INR22 crores in October via warrant conversion. - Internal accruals and promoter funds should cover approximately INR300 crores, enough to deploy 3,000 BSNL sites initially. - Future funding of around INR400 crores may be needed over the next year for the rest of the rollout. - The company may consider equity dilution later based on Vodafone and Airtel rollouts. - Current strategy prioritizes raising bank debt first for rollout, followed by potential equity raise as required. - Management expressed confidence in arranging INR500 crores easily from promoter funds and internal accruals.

- BSNL order: Bid for 12,500 sites; confident of allocation of minimum 6,000 sites; total rollout planned for 17,000+ sites over 12-15 months; approx. INR600 crore CapEx needed for 6,000 sites. - Vodafone Idea (VI): Recently got 500 sites order; expecting to achieve 1,000 sites deployment for VI in Q3 and Q4 FY26. - Airtel: Targeted to contribute 35%-40% of revenue; ongoing rollout upgrade from 4G to 5G. - Jio: Targeted 20%-25% revenue share; rollout delayed due to IPO issues but expected to pick up. - MTNL fibre project: L1 bidder for about 1,000 km fibre tender; awaiting final approvals; revenue details pending. - Data Centre fibre project: INR35 crore one-time revenue expected by FY26-end. - Overall order book and major rollout planned with a combined target revenue of INR250 crore with PAT around INR80 crore for H2 FY26. - Inorganic growth plans in progress to supplement organic orders.