Suyog Telematics LtdQ1 FY27
Suyog Telematics Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹747P/E: 15.9Market Cap: ₹993 CrSector: Telecom - Services
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- →FY27: Targeting 3,000 additional tenancies, mainly from Vodafone Idea (VI).
- →FY28: Eyeing another 5,000 new sites from Vodafone; total 8,000 to 10,000 tenancies from Vodafone over two years.
- →Vodafone’s rollout expected to be aggressive with 30,000 sites planned in the current year; Suyog aims for 10% market share (~3,000 sites).
- →BSNL plans 2 lakh sites in next 5 years, but rollout delayed due to equipment issues; revenue expected post resolution, potentially starting Q2 FY27.
- →Annual new tower addition run-rate realistically estimated at 3,000 to 5,000 sites based on visibility and funding.
- →Tenancy ratio aimed to improve from 1.2x to 1.8x in 3-4 years, increasing EBITDA and PAT margins.
- →Significant growth from FY28 onwards as full-year benefits of new tenancies in Vodafone come through.
- →Fibre revenue currently marginal (~5-8%) with no major jump expected in FY27.
Margin guidance
Category 3- →The company targets rapid growth starting FY27 after a stagnant period in the last two years.
- →Plans to execute 3,000 tenancies from Vodafone Idea (VI) in FY27, confident in achieving this due to strong order flow and execution capacity.
- →Revenue for Q1 FY27 stood at INR 71.09 crores, with EBITDA margin at 59.3% (adjusted for electricity inclusion).
- →Full-year benefit of VI rollout to reflect mainly from FY28, indicating significant revenue and margin jumps from Q3/Q4 FY27 onwards.
- →Target to increase tenancy ratio from current 1.2x to 1.8x by FY29, improving EBITDA and PAT margins due to greater site sharing efficiency.
- →PAT margin expected around 20% for FY27; focus on sustaining 20-24% margins going forward with revenue growth.
- →Earnings per share (EPS) was INR 12.37 for Q1 FY27, with growth expected as more sites come online in subsequent quarters.
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Fundraise plans
Yes- →Currently, Suyog Telematics has enough funds from internal accruals and bank financing to support their planned rollout of sites, including the target of 3,000 tenancies this year.
- →There is no confirmed decision to raise new funds through debt or equity at this time.
- →Fundraising will be considered if there are additional bulk orders beyond current expectations, such as more orders from Vodafone Idea (VI) or BSNL.
- →The management stated they will inform investors about any fundraising plans when the right time comes.
- →The bank funds are being repaid monthly, and no immediate fundraising is planned for the near future (Q1 FY27).
- →The company remains flexible and will evaluate the need for raising funds depending on order inflows and execution requirements.
Order book
Yes- →Current orderbook includes approximately 850 tenancies from Vodafone Idea (VI) – 150 tenancies completed in Q1 FY27 and 700+ in the pipeline.
- →Target for FY27 is to add 3,000 tenancies from VI, with 3,000 seen as conservative and achievable given execution capacity and funds.
- →BSNL pending billing for 186 sites due to Tejas equipment issues, expected to start contributing from Q2 FY27 after resolution.
- →Vodafone rollout plans: Currently targeting 3,000 tenancies in FY27 and 5,000 in FY28 from their bulk order of 45,000 sites.
- →Vodafone funding for rollout includes INR 6,400 crore secured; awaiting further funding confirmation from SBI consortium.
- →No immediate fundraise planned; company has enough internal accruals funding current orders.
- →Overall visibility on additional new tenancies primarily tied to Vodafone and BSNL funding and rollout timing.
Capex plans
Yes- →Suyog Telematics is investing in zinc batteries as a strategic move to reduce CapEx and dependency on imported lithium batteries. Zinc batteries are ready for production, with trials starting mid-September. Zinc batteries are 100% made in India and priced similar to old lithium batteries, ensuring CapEx savings.
- →The company continues capital investment in rolling out telecom towers, targeting 3,000 additional tenancies for Vodafone Idea in FY27, mostly involving new tower setups (80% new towers, 20% shared tenancy).
- →Fibre network investment remains marginal (5-8% of revenue), as most rural sites use microwave; a future jump in fibre CapEx and revenue is expected with FTTH and fibre rollout for operators.
- →Current funding for rollout is from internal accruals; fundraising decisions will be made if new bulk orders exceed funding capacity.
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