Q1 2027 Suyog Telematics Ltd Earnings Call Transcript
Key Points
- Suyog Telematics Ltd (BOM:537259) received over 600 orders from Vodafone Idea in mid-June and rapidly converted 95 towers (150 tenancies) within 15 days, demonstrating strong execution capability.
- The company is pioneering the use of zinc batteries in the telecom industry, which are fire-resistant, 100% made in India, and priced at INR33,000 versus INR48,000 for lithium, significantly reducing CapEx and operational costs.
- Management is highly confident in achieving 3,000 additional tenancies from Vodafone Idea in FY27, backed by a strong order pipeline of 700+ tenancies and daily loading, with a target of 10,000+ total tenancies by year-end.
- Revenue per tower remains robust at INR31,000 (excluding electricity), and the company maintains a stable EBITDA margin of 59.3% and a PAT margin of 20%, even with the new accounting policy that includes electricity in revenue.
- The industry outlook is positive with Vodafone Idea's 45,000-site rollout plan and BSNL's 2 lakh-site CapEx program, positioning Suyog Telematics Ltd (BOM:537259) to benefit from a massive tower demand pipeline over the next five years.
- Revenue growth was modest in Q1 FY27 (6.1% YoY) as new orders only started flowing from mid-June, with the full benefit expected only in FY28.
- The company faces significant cost pressure from rising lithium battery prices, which have increased by ~50% in the last 2.5 months due to China's subsidy removal and rupee depreciation, impacting CapEx.
- BSNL's rollout remains stalled due to unresolved Tejas equipment issues, with 186 sites still pending billing, and management is cautious about giving any projections until billing starts.
- The company's growth is heavily dependent on Vodafone Idea's funding and execution; if Vodafone's additional funding from SBI is delayed, the 3,000 tenancy target could be at risk.
- The tenancy ratio is still low at 1.2x, and despite targeting 1.8x by FY29, the current ratio limits incremental EBITDA from existing assets, and fiber revenue is expected to remain marginal at 5-8% of total revenue.
Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you to the Q1 FY27 post earnings conference call of Suyog Telematics Limited.
Today on the call from the management team, we have with us Mr. Shivshankar Lature, Managing Director; Mr. Tushar Shah, Business Head, India; Mr. Ajay Sharma, Chief Financial Officer; and Ms. Aarti Shukla, CS.
As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. And this is a reminder that this call is being recorded. I would now request the management to detail us about the business and performance highlights for the quarter ended June 2026, the growth perspective, and the vision for the coming year, post which we'll open the queue for Q&A.
Over to the management team.
Hi, everyone. Good afternoon, everyone. I'll be starting the presentation for the quarter with Q&A. So this presentation is about Q1
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