Suyog Telematics: Connecting India's Future with Strategic Expansion and 5G Readiness

Suyog Telematics Limited, a prominent player in India's telecommunications infrastructure sector, has delivered a robust performance in the second quarter and first half of Fiscal Year 2026. The company reported consolidated revenue from operations of INR 55.41 crore in Q2 FY26, marking a significant 16.1% year-on-year growth. For the first half of FY26, revenue stood at INR 109.98 crore, up 17.3% from the previous year. This impressive top-line growth was complemented by strong profitability, with an EBITDA of INR 41.69 crore in Q2, translating to a healthy 75.2% EBITDA margin. Net profit for the quarter was INR 16.62 crore, maintaining a solid 30.0% net profit margin. These figures underscore Suyog's operational efficiency and strategic positioning in a rapidly evolving telecom landscape.

The company's performance is largely driven by its strategic focus on passive telecommunication infrastructure, including cutting-edge telecom tower solutions, high-power small cell infrastructure, and fiber connectivity. Suyog's client base includes major operators like Airtel, Jio, Vodafone Idea (VI), and BSNL, with Airtel contributing the largest share at 46.5% of H1 FY26 revenue. The company's business model emphasizes infrastructure sharing, providing ready infrastructure on long-term leases to telecom service providers. This approach ensures a sustainable revenue model with recurring income streams and margin accretive growth through new tenant additions with minimal additional operating costs.

Strategic Initiatives and Growth Drivers

Suyog Telematics is actively pursuing several strategic initiatives to capitalize on India's digital transformation and 5G rollout. A significant growth driver is Airtel's 5G deployment on Suyog's Unlicensed Spectrum (ULS) sites. This initiative is particularly lucrative, offering an immediate revenue upside of INR 3,000 to INR 4,000 per site per month with minimal capital expenditure, as the sites are already prepared for upgrades. The company manages over 2,500 Airtel ULS sites, and this rollout is expected to substantially boost EBITDA and PAT.

Another key strategic move is the acquisition of Lotus Tele Infra, which became a 95% subsidiary of Suyog Telematics on March 31, 2025. This acquisition provides an immediate and critical presence in the Delhi Circle, adding 120 telecom sites to Suyog's asset base. This expansion is projected to increase tenancies by 50% within six months and positions Suyog as a leading IP-1 infrastructure player in both Mumbai and Delhi, enhancing its national footprint.

The company is also aggressively participating in BSNL's nationwide 4G/5G rollout. Suyog has bid for 12,500 sites and is confident of securing at least 6,000 sites, primarily Ground Based Towers (GBTs), which offer higher profitability. While the BSNL order has seen a slight delay, now expected by December 2025, the deployment is anticipated to commence from Q4 FY26. This large-scale rollout, though potentially impacting the average revenue per tenancy due to lower rentals in non-metro areas, is expected to significantly improve overall EBITDA and PAT.

Suyog is also expanding its fiber optics network solutions. The company is engaged in fiber projects with Local Cable Operators (LCOs) and data center companies in the Mumbai region, including a one-time project worth INR 35 crore and ongoing projects valued at over INR 350 million. These initiatives cater to the increasing demand for high-speed data connectivity, especially with the advent of 5G and the growth of data centers.

Operational Excellence and Future Outlook

Suyog Telematics is committed to operational excellence through ongoing R&D initiatives aimed at reducing costs and enhancing service delivery. These include exploring wind turbines for electricity bill reduction, developing zinc batteries as a cost-efficient power backup solution, and advancing FTTH (Fiber-to-the-Home) vertical wiring solutions. The company is also exploring Low Orbit Satellite technology to improve connectivity and expand its service portfolio, demonstrating a forward-looking approach to technological shifts.

Management has provided a positive outlook, guiding for a top line of approximately INR 250 crore and a PAT of around INR 80 crore for H2 FY26. The company aims to achieve 8,500 to 9,000 tenancies by the end of FY26, with the remaining balance spilling over into FY27. This growth is expected to be driven by the ongoing rollouts for Vodafone Idea, Airtel's 5G expansion, and the anticipated BSNL projects. Suyog's disciplined capital allocation strategy, prioritizing debt financing from banks and promoter funds for major rollouts, ensures that growth is well-supported.

Despite challenges such as execution delays in BSNL orders and increased depreciation costs from lease renewals, Suyog Telematics has maintained a balanced and confident tone. The company's focus on strategic acquisitions, high-margin 5G deployments, and proactive R&D positions it strongly to capitalize on India's burgeoning telecom infrastructure market. Suyog Telematics is not just building towers; it is laying the foundation for India's connected future, demonstrating sustained growth and operational resilience.