Profit after tax for the June quarter fell despite an Rs 88 crore writing back provisions made against doubtful receivables from cash-strapped Vodafone Idea, one of its anchor customers.
The passive infrastructure company, which is now a subsidiary of Bharti Airtel, reported a 9.1% on-year increase in revenue to Rs 8,058 crore.
During the quarter ended June 30, total expenses increased 29.2% on-year to Rs 3,667.5 crore due to rise in power and fuel costs (up 5.8% on-year to Rs 3068.7 crore), employee benefit expenses (up 8.2% on-year to Rs 213.3 crore) and repairs and maintenance expenses (up 2.9% on-year to Rs 369.7 crore).
Indus said Vodafone Idea is now paying an amount equivalent to its monthly billings, and Indus continues to recognise revenue from operations relating to the telco. “However, the company does not recognise revenue equalisation asset on account of straight-lining of lease rentals considering the customer’s financial condition,” Indus said in its quarterly earnings report.
Indus carries an allowance for doubtful receivables of Rs 209.9 crore as of June 30, 2025, which fell from Rs 298.1 crore in the previous quarter, on account of Vodafone Idea clearing its past overdues.Indus though said that in case of loss of business from Vodafone Idea due to its inability to continue as a going concern, without any new customer coming onboard, there could be an adverse effect on the results of operations and financial position of the tower company.Net finance cost for the quarter fell 2.9% on-year to Rs 396.5 crore, or 4.9% of its revenues.
In the fiscal first quarter, Indus added 2,468 new macro towers taking its total to 251,773 towers. Co-locations increased by 5,777 quarterly, ending the quarter with 411,212 co-locations. Co-locations are points where a tower company deploys mobile telecom antennae of multiple carriers on a single structure.
“Our inherent strengths as a leading passive infrastructure player continue to help us achieve a meaningful share of our customers’ rollouts,” said Prachur Sah, managing director and CEO, Indus Towers.
He added that the company continues to make investments in emerging technologies including in AI and digital solutions, aimed at future-proofing its operations.
“We believe that our scale, agility, and tech-forward approach position us favourably to capitalize on emerging opportunities amidst the backdrop of a rapidly evolving industry landscape,” he added.
The company’s shares closed 1.74% lower at Rs 383.75 on the BSE Wednesday. The results were announced after market hours.