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Suyog Telematics
Our verdict on Suyog Telematics isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The EBITDA margin for Q3 FY26 was 70.8%, and the 9M FY26 margin was 73.8%, both falling short of the 75% target. (2 missed, 1 met across 3 tracked commitments)
“I am saying that our PAT is around 30%, 32% of revenue. ...I gave the approx. idea of INR80 cr, INR85 cr. approx.”
Management has upgraded the FY27 tenancy target from 15,000 to approximately 17,000 tenancies, citing clarity on BSNL and Vodafone funding. (1 revised, 1 missed across 2 tracked commitments)
“So, we see yearend something around 8,500 sites by March... it feels that 8,500, 9,000 should be achievable by end of year.”
Management has explicitly stated they will not maintain the revenue guidance of ₹240-250 crores for the current year due to rollout delays from major operators. (1 revised, 2 missed across 3 tracked commitments)
“You mentioned last Ɵme that INR250 crores of revenues will be achieved. So, are we on track for achieving that? Tushar Shah: ...It will remain same as of now. Yes.”
Expectation of substantial revenue from a ₹35 crore data centre fibre project in Q4. — target: ₹35 crore project value (+1 more commitment)
“yes, Q4 we will see a substantial not entire, but we can see substantial revenue, which will come from a fibre business mainly related to data centre.”
The company is developing vertical wiring solutions for FTTH installations to optimize space and speed.
“Developing vertical wiring solutions for FTTH installations within ducts, thereby optimizing space utilization, improving installation efficiency, and enhancing service delivery speed.”
See the full cited Management analysis of Suyog Telematics
How durable is the business?
The company expanded its geographic footprint in the Delhi Circle through the acquisition of Lotus Tele Infra, strengthening its presence in the national capital. (4 expanding)
“we had acquired Lotus Tele Infra, which has given a big boost in Delhi Circle... we are increasing our presence in capital of India, which is Delhi Circle.”
The company is significantly expanding its fiber network, which now stands at 6,152 km, and is bidding for an additional 1,000 km aerial fiber tender from MTNL to strengthen its infrastructure moat. (1 expanding)
“We have increased our very strong fibre network to 6,152 per kilometre... We are on the final stages of getting 1,000 plus kilometres of fibre, aerial fibre tender in Mumbai Circle from MTNL.”
The company is aggressively pursuing operational efficiency by trialing Zinc batteries as a cheaper alternative to Lithium and installing wind turbines to reduce electricity bills. (1 expanding)
“Trial Initiated in Q4 FY25 For Zinc batteries as a cost-efficient power backup solutions... Installation of wind turbines at select telecom towers on a trial basis to decrease energy costs”
Vodafone Idea (VIL) has significantly increased its rollout activity following positive regulatory developments, with 500 macro sites currently under deployment and a target of 1,000 sites by the end of the fiscal year. (4 expanding, 1 stable across 1 engine)
“Operator wise Revenue Breakup FY26 VI 26.7%”
The regulatory moat is strengthening due to the new Telecommunications Act 2023 and Right of Way Rules 2024, which streamline infrastructure deployment. (2 expanding, 1 stable)
“Advantages of Government Sites: All Prime & Critical Locations; No threats of termination; High demand sites by all telcos; Contract easily extendable through tenders or Government policies”
See the full cited Business Model analysis of Suyog Telematics
Where does growth come from?
EBITDA margins showed strong year-on-year improvement, reaching 71.4% when excluding one-time ESOP impacts. (5 accelerating across 5 signals)
“EBITDA Margin (%) FY26 74.0... YoY% +252 bps... Incorporating new tenants at their sites involves minimal additional operating costs... fostering higher profitability margins.”
The company has reached 7,002 total tenancies, with a significant portion driven by small cell rollouts in metro cities, though this has temporarily lowered per-site realization. (5 steady across 5 signals)
“4000+ “Operational Small Cell Tenancies” as on 31st Mar, 2026... Prospective Growth Driver for the Indian Telecom Tower Industry”
The acquisition of Lotus Tele Infra on March 31, 2025, marks a strategic entry into the Delhi & NCR circle, adding 120 sites and establishing it as one of the company's largest operational zones. (1 new trend, 1 steady, 1 decelerating across 3 signals, 1 leading indicator)
“STRATEGIC EXPANSION INTO DELHI CIRCLE (1/2) (ACQUISITION OF LOTUS TELE INFRA)... Operates in the critical Delhi & NCR Region... 120 Telecom Sites Owned... Consideration Amount: INR 13.5 Crores”
ARPT saw a temporary dip due to small cell focus and rental negotiations but is now reversing upward as macro site rollouts for BSNL and 5G upgrades for Airtel increase. (1 reversing, 1 steady across 2 signals)
“Right now, it should be somewhere ₹20,000, ₹21,000. By March end, we'll achieve ₹25,000 per figure per tenancy... By Q4, you will see revenue per tenancy going back to original.”
The acquisition of Lotus Tele Infra (completed March 31, 2025) is now fully integrated, providing a strategic foothold in the Delhi Circle with 40 new sites already being added in Q2. (1 steady, 1 new trend across 2 signals)
“In terms of the real, as you’re aware, in last quarter on 31st March, we had acquired Lotus Tele Infra, which has given a big boost in Delhi Circle. So now Lotus Tele Infra is completely owned by Suyog... with the acquisition of Lotus Infra and Lotus Infra doing almost 40 sites in Q2, we are increasing our presence in capital of India, which is Delhi Circle.”
See the full cited Future Growth analysis of Suyog Telematics
What could break the thesis?
Concentration remains high but is slightly diversifying as BSNL's revenue contribution grew from negligible levels to 4.7% in Q1FY26. However, Airtel still dominates at 45.8%. (4 easing, 1 stable, 1 high-severity)
“Operator wise Revenue Breakup FY26: airtel 48.0%, Jio 22.8%, VI 26.7%, BSNL 2.5%”
The company is seeking significant new funding (INR 500-800 Cr) to support a massive rollout of 15,000 tenancies. While they have INR 145 Cr in sanctioned bank loans, the scale of required capital for the BSNL/Vodafone orders suggests continued balance sheet pressure. (5 intensifying, 1 high-severity)
“Non-Current Liabilities: Financial Liabilities FY25 1,309.5, FY26 2,981.8”
Management expresses high confidence in Vi's sustainability following their fundraise, noting Vi plans to roll out 12,000-15,000 sites this year. No payment delays are currently reported. (5 easing, 1 high-severity)
“Vi’s capex revival and AGR clarity are expected to accelerate telecom infrastructure demand... Potential Benefits for Suyog: Higher tenancy additions from Vi rollout”
Interest costs continue to climb, rising to INR 53.8 Mn in Q1FY26 compared to INR 33.3 Mn in Q1FY25, a 61.5% year-over-year increase. (3 intensifying, 1 stable)
“Interest: FY26 242.2, FY25 165.7, YoY% 46.2”
Revenue per tenancy is actually improving, driven by massive upgrades (5G loading) executed on client sites. (3 easing, 2 stable)
“REVENUE PER TOWER / MONTH (AVERAGE QUARTERLY TREND)... Q3FY26 31,533, Q4FY26 31,080”
See the full cited Risk analysis of Suyog Telematics
Suyog Telematics analysis by filing period
Read the full thesis on Suyog Telematics
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