Indus Towers Limited — Q4 FY26

Indus Towers Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=na8awJr7qo8 Published: 12 days ago

0:01 1 second Good afternoon ladies and gentlemen. I am Michelle the moderator for this conference. Welcome to Indis Towers 0:09 9 seconds Limited's fourth quarter and full year end date March 31st 2026 earnings call. 0:15 15 seconds For the duration of the presentation all participant lines will be in the listen only mode. After the presentation the question and answer session will be 0:24 24 seconds conducted for all the participants on this call. In case of a natural disaster, the conference call will be terminated post an announcement. 0:34 34 seconds Present with us on the call today is a senior leadership team of indiscouts. 0:39 39 seconds Before I hand over the call, I must remind you that the overview and discussions today may include certain forward-looking statements that must be 0:48 48 seconds viewed in conjunction with the risks that we take. I now hand over the call to our first speaker of the day, Mr. 0:55 55 seconds Petra Saha. Thank you and over to you Makita. 1:01 1 minute, 1 second Thank you Michelle and a very warm welcome to all participants. Joining me today are my colleagues Mr. 1:09 1 minute, 9 seconds Vikas Podar CFO, Mr. Tijinder Kala, CEO and Mr. Dhira Jagraal, head investor relations on the call 1:17 1 minute, 17 seconds today. I will talk about our business performance for the quarter and year ending on March 31, 2026. 1:24 1 minute, 24 seconds FI26 was marked by strong collocation additions and continued tower additions reflects a strong execution 1:32 1 minute, 32 seconds capabilities. Exceptional service to our customer underpins our competitiveness strength to capture a meaningful share of customers network expansion. 1:42 1 minute, 42 seconds Gradual improvement in the financial position of a major customer aided by the government support provides visibility of strong business momentum. 1:50 1 minute, 50 seconds Overall, FI26 was another year of solid progress, the strong operational and financial performance 1:58 1 minute, 58 seconds with the improved financial situation of one of the customers and the potential business momentum. The board has recommended final dividend of rupees 14 per share. 2:08 2 minutes, 8 seconds Before delving deeper into our business performance, I would like to acknowledge the exceptional commitment of our field force whose ability to overcome 2:16 2 minutes, 16 seconds geographic and climatic challenges enables consistent delivery of reliable roundthe-clock connectivity nationwide. 2:23 2 minutes, 23 seconds During the quarter, assignment parts of Northeast experienced severe weather conditions which significantly disrupted the movement of our on ground workforce. 2:32 2 minutes, 32 seconds Despite these challenges, our field teams acted swiftly to restore services, stabilizing connectivity and effectively preventing any major disruption. 2:42 2 minutes, 42 seconds On the regulatory front, the Ministry of Finance introduced intensive link schemes to encourage states to align with the RO rules 2024 2:52 2 minutes, 52 seconds with an allocation of rupees 4,000 crores to states. The scheme is expected to accelerate approvals and ease deployment bottlenecks. 3:01 3 minutes, 1 second The green energy open access policy has now been operationalized across all states reinforcing the sector's foundation towards cleaner and more sustainable energy sources. 3:11 3 minutes, 11 seconds This is expected to help reduce the energy cost for tower course. 3:16 3 minutes, 16 seconds Additionally, central electricity authority has notified the installation and operations of meters regulations 2026 3:25 3 minutes, 25 seconds mandating smart meters for all customers in areas with communication networks. 3:30 3 minutes, 30 seconds In this context, we are actively collaborating with stakeholders at both central and state levels to deploy smart meters across our cities, which will 3:38 3 minutes, 38 seconds enhance operational efficiency, optimize energy costs, and enable more granular scalable billing mechanisms. 3:47 3 minutes, 47 seconds Moving up to update on 5G networks, the installed base of 5G BDSS now stands at close to 531,000. 3:55 3 minutes, 55 seconds As large scale deployments stabilize, rising data demand and network densification are giving the need for incremental capacity on existing 4:03 4 minutes, 3 seconds infrastructure supporting sustained loading revenue growth over time. This is also expected to be complemented by 4:10 4 minutes, 10 seconds selective expansion of the tower footprint backed by strong customer relationships and a robust operating platform. Indust 4:19 4 minutes, 19 seconds is well placed to capitalize on these opportunities and support the evolving requirements of next generation networks. 4:26 4 minutes, 26 seconds As per the latest try report, the total 5G subscription base in India stood at over 391 million by the end of December 2025, growing by 30 million in Q3 FI26. 4:39 4 minutes, 39 seconds India's data consumption momentum remains robust, driven by the continued migration of users towards 4G and 5G. As 4:46 4 minutes, 46 seconds per TI's latest publications, total data consumption and average monthly data usage per user grew by 29% and 21% year on year, respectively. 4:57 4 minutes, 57 seconds According to TI, 5G usage alone grew 21% quarteron quarter, accounting for 40% of 5:04 5 minutes, 4 seconds the total data traffic in Q3 FI26, up from 35% in Q2 FI26. 5:11 5 minutes, 11 seconds Continued growth in data usage is encouraging operators to enhance capacity across existing infrastructure. 5:19 5 minutes, 19 seconds With a pan India presence with expansive tower portfolio and a strong execution track record, Indust remains well positioned to partner with customers in 5:28 5 minutes, 28 seconds meeting their evolving network requirements. 5:32 5 minutes, 32 seconds In terms of operational performance, we registered strong collocation additions during the quarter driven by pickup uh 5:39 5 minutes, 39 seconds by the customer's network expansion and our ability to capture a major share of the customer soldouts. 5:45 5 minutes, 45 seconds We added 4,892 macro towers and 6,192 corresponding collocations. During the quarter, 5:53 5 minutes, 53 seconds translating into a year-on-year growth of 6.5 6.1% and 5.6% in tower and collocation base, respectively. 6:02 6 minutes, 2 seconds As a result, total macro tower and collocation stood at around 264,500 and 428,000 respectively. On a fullear 6:12 6 minutes, 12 seconds basis, tower and collocation additions were around 15,200 and 22,500 respectively. 6:19 6 minutes, 19 seconds Our industry-leading tenency ratio was stable at 1.62. 6:24 6 minutes, 24 seconds Our collocations of Lena towers stood at more than 14,000. including liner towers. Our portfolio stood at approximately 440,000 42,000 at the end of the year. 6:36 6 minutes, 36 seconds I will now pro now provide an update on our key KPIs. 6:40 6 minutes, 40 seconds We remain committed to reducing diesel consumption by transitioning to cleaner sources of energy. We are close to 2500 sites with solar access during the 6:49 6 minutes, 49 seconds quarter, taking the overall sites to about 42,400. 6:54 6 minutes, 54 seconds D d d d d d d d d d d d d d d d d d d d diesel consumption on our sites reduced by about 7% yearon year in Q4 FI26. 7:00 7 minutes This is despite 6% year-on-year increase in collocations and continued equipment loading on the sides. 7:06 7 minutes, 6 seconds Navigating extreme weather conditions, the dedication and perseverance of our teams on the ground helped us deliver an industry best of time of 99.977% in Q4 FY26. 7:20 7 minutes, 20 seconds Let me now move to our strategic pillars. market share, cost efficiency, network uptime and sustainability. 7:27 7 minutes, 27 seconds On market share, we continue to send our position. We remain preferred partner for our key customers that enables us to capture a significant share of the network rollout. 7:37 7 minutes, 37 seconds Network expansion was robust across major customers, allowing us to improve our market share in new deployments. Our ability to deliver reliable service at 7:46 7 minutes, 46 seconds competitive rates supported by strong execution and stringent quality standards has been central to this performance. 7:53 7 minutes, 53 seconds Targeted technical interventions and customized product offerings have further contributed to cost optimization and improvement in overall delivery 8:02 8 minutes, 2 seconds in our non-tower segment. We achieved leadership position in the IBS space in Q4. Our dash business also saw a pickup 8:10 8 minutes, 10 seconds with increased deployments in metros, tunnels and highways. With a focus on build to suit solutions and continued technological demisement, this segment is well positioned for further growth. 8:24 8 minutes, 24 seconds Cost discipline and operational excellence are embedded in our ways of working with a continued focus on improving efficiency, enhancing 8:31 8 minutes, 31 seconds predictability and structurally resetting our cost base. We made targeted interventions across tower tendering, civil and electrical works, 8:39 8 minutes, 39 seconds supply chain led cost optimization and partner scope rationalization while ensuring site safety and service reliability. 8:47 8 minutes, 47 seconds Energy efficiency is a central driver of our cost reduction efforts. During the year, we scale deployment of energy efficient solutions including broader 8:55 8 minutes, 55 seconds solar integration and accelerated deployment of advanced battery technologies. 9:01 9 minutes, 1 second Over the last two years, as mentioned earlier, we have ramped up our solar deployment and provided solar access to about 28,000 sites during this period. 9:10 9 minutes, 10 seconds We have also progressively increased the share of lithiumion batteries across our portfolio. 9:16 9 minutes, 16 seconds These initiatives are structurally reducing diesel dependency, improving uptime and supporting a more resilient and lower cost energy framework. 9:25 9 minutes, 25 seconds We also continue to strengthen our approach towards capex management by enhancing cost discipline, standardizing tower cost and tightening execution controls across tower deployments. 9:36 9 minutes, 36 seconds Thirdly, service reliability remains a core priority with continued focus on maintaining industry-leading standards across our operations. We are leveraging 9:44 9 minutes, 44 seconds advanced digital tools and data platforms to enhance service delivery by the way of enabling faster issue resolution implementing a more proactive 9:52 9 minutes, 52 seconds datadriven approach to address customers needs. 9:55 9 minutes, 55 seconds FI26 step up in a digital and ALE transformation. For example, over 85% of 10:03 10 minutes, 3 seconds our sites are now digitally connected covering key systems such as fuel sensors, back hole monitoring, smart meters and equipment among others. 10:11 10 minutes, 11 seconds The deployment of AI and machine learning capabilities have enabled proactive identification of outages, automated root cause analysis, and improved resolution effectiveness. 10:21 10 minutes, 21 seconds Initiatives such as AI based voice agents for technician calling and computer vision validation of preventive maintenance activities have enhanced 10:30 10 minutes, 30 seconds field productivity, standardization, and compliance while delivering high levels of accuracy. 10:37 10 minutes, 37 seconds Energy management as mentioned earlier remains an important area to focus with the implementation of an end-to-end automated fuel management platform 10:44 10 minutes, 44 seconds enable enabling realtime planning of diesel usage logistics optimization and fill validation. 10:50 10 minutes, 50 seconds These interventions are improving cost efficiency and operational control. In parallel, we have progressed our digital twin journey through site service image 10:58 10 minutes, 58 seconds platform, enabling planning teams with a unified view of site to optimize asset utilization and improve civil and electrical planning. 11:07 11 minutes, 7 seconds We are progressing well on our ESG agenda as well. During the year, we undertook a double materiality assessment and a comprehensive climate 11:15 11 minutes, 15 seconds risk assessment across our operations, enhancing our understanding of physical and transition risks and embedding resilience into long-term planning. 11:23 11 minutes, 23 seconds Following the approval of our near-term and net zero targets by science-based targets initiative SBTI, we have formulated a decarbonization road map to 11:32 11 minutes, 32 seconds guide progress towards these commitments. 11:35 11 minutes, 35 seconds On the workplace, gender diversity improved from 16.2% in FI25 to 18.3% in FI26. 11:42 11 minutes, 42 seconds During the year, we launched a digital lead program to advance digital and AI capabilities across the organization. We also launched PRANA, a women-led 11:50 11 minutes, 50 seconds mentoring program to inspire and uplift women employees. 11:54 11 minutes, 54 seconds We undertook campaigns and targeted trainings focused on road safety and technicians working at heights. 12:00 12 minutes In CSR, as part of our flagship program, Saksham, in association with the Bharti Foundation, we have supported over 30 12:07 12 minutes, 7 seconds Satya schools and 1100 government schools across multiple states and union territories under the quality support program. 12:15 12 minutes, 15 seconds Additionally, our digital transformation van has touched over 646,000 lives in FI26. 12:22 12 minutes, 22 seconds As part of our other flagship program, Pragati, we conducted disaster relief measures across the nation, positively impacting close to 33,000 households. 12:31 12 minutes, 31 seconds Through these programs, we managed to touch around 33 million lives by end of FI26. 12:38 12 minutes, 38 seconds On the governance front, we maintain high levels of governance, integrity, and transparency. To drive ESG adoption 12:45 12 minutes, 45 seconds across our value chain, we instituted the ESG pathfinders awards with the objective of recognizing who have demonstrated meaningful commitment 12:53 12 minutes, 53 seconds towards advancing sustainability initiatives. 12:57 12 minutes, 57 seconds Our CSR effort throughout the year were recognized by multiple bodies as the company was awarded the Mahatma award for CSR excellence and recognized for 13:05 13 minutes, 5 seconds sustainable and responsible business amongst the others. 13:10 13 minutes, 10 seconds I will now provide a brief update on our progress on Africa expansion. We are making steady progress on Africa 4A with key operational and structural building 13:18 13 minutes, 18 seconds blocks largely in place across our target markets. In Zambia, we have secured the operating license and are now advancing on ground execution. In 13:27 13 minutes, 27 seconds Uganda and Nigeria, we are in the last stages of getting regulatory approvals. 13:32 13 minutes, 32 seconds Commercial frameworks are largely established with the primary customer and initial orders are in place. In parallel, we have made good progress in 13:40 13 minutes, 40 seconds setting up supply chain ecosystem and strengthening operational readiness, positioning us well for efficient and scalable deployment. 13:47 13 minutes, 47 seconds We expect the rollouts will begin soon and will ramp ramp up progressively as approvals come through. Overall, our strategy in Africa remains, it's a 13:55 13 minutes, 55 seconds long-term strategy and remains to create differentiation through better cost per tower, delivering uh better SLA uptime 14:02 14 minutes, 2 seconds and higher energy efficiency. By doing this and remaining competitive commercially in line with the local market, we believe in long-term to be a major player in Africa tower business. 14:14 14 minutes, 14 seconds Geopolitical developments due to the war in West Asia have created near-term supply side disruptions impacting tower availability, deployment timelines and 14:22 14 minutes, 22 seconds cost structures primarily through energy supply constraints and input cost inflation. We continue to monitor the situation closely and mitigating actions 14:31 14 minutes, 31 seconds are being taken in line with the evolving geopolitical and market conditions. 14:37 14 minutes, 37 seconds With regards to rewarding the shareholders, we are pleased to announce that the board has recommended a final dividend of rupees 14 per share reflecting our commitment toward returning cash to shareholders. 14:47 14 minutes, 47 seconds As was informed earlier, the board considered and decided to resume shareholder payouts while remaining aligned with a disciplined capital 14:55 14 minutes, 55 seconds allocation approach and ongoing investment priorities. The endeavor would be to follow a steady and progressive distribution. 15:03 15 minutes, 3 seconds I would now request Vikas to take take you through our financial performance for the quarter and year ending March 31 2026 and I look forward to your questions. Over to you Vikas. Thank you. 15:16 15 minutes, 16 seconds Thank you Pure and uh good afternoon everyone. I'm pleased to present our financial results for the quarter and year ending 31st March 2026. 15:25 15 minutes, 25 seconds FI26 saw strong collocation additions supported by continued customer network expansion. Sustained business momentum 15:33 15 minutes, 33 seconds and positive developments at our customers end underpinned our financial performance. In terms of financial performance for quarter 4 FI26, 15:41 15 minutes, 41 seconds total revenues were at 81 billion, growing by 4.8% yearonear. Core revenues 15:48 15 minutes, 48 seconds from rentals stood at 53.1 billion up 5.4% 4% year-on-year driven by healthy 15:54 15 minutes, 54 seconds collocation additions. Please note that quarter 4 of last year had onetime reconciliation benefits. I had explained 16:02 16 minutes, 2 seconds in quarter 4 FI25 earnings call that the benefits added about 2.1 percentage point to the sequential growth in core 16:09 16 minutes, 9 seconds revenues. With regard to quarter 4 FI26, our reported gross revenues were 0.6% 6% lower quarteron quarter due to lower 16:17 16 minutes, 17 seconds energy revenue which is an outcome of both our cost optimization and seasonality driven uh reduction in the energy cost. 16:26 16 minutes, 26 seconds Core revenues increased by 0.6% quarteron quarter. Impact of one-time settlement in quarter 4 and network optimization by our customers weighed on 16:35 16 minutes, 35 seconds the overall growth in revenue. On profitability reported aida was at 44.6 billion growing by 1.6% 6% yearonear and 16:44 16 minutes, 44 seconds declining 1% quarteron quarter. The beta margin was lower by 1.8 percentage point year on year and 0.2 percentage point 16:52 16 minutes, 52 seconds quarteron quarter at 55.1% for quarter 4 fi26. 16:57 16 minutes, 57 seconds I would like to remind you that quarter 4 fi25 included writebacks of approximately 2.3 billion related to collection of overdue receivables from a 17:06 17 minutes, 6 seconds major customer. Quarter 4 last year also included accounting impact of towers acquired from Etle amounting to rupees 17:12 17 minutes, 12 seconds 1.7 billion towards operating expenses and depreciation. Adjusted for the rightback and accounting impact was up 17:21 17 minutes, 21 seconds 4.5% year-on-year. The sequential decline in IITA was partially due to higher network costs which increased primarily due to higher maintenance 17:29 17 minutes, 29 seconds activities on our aging and growing our portfolio. 17:33 17 minutes, 33 seconds Our energy margins were at negative 3.6% 6% in quarter 4 FI26 compared to negative 5.2% in the same period last 17:40 17 minutes, 40 seconds year. We continue to undertake cost optimization initiatives particularly around energy management. This includes structural reduction in diesel 17:48 17 minutes, 48 seconds dependence through increased adoption of renewable renewable energy solutions, battery augmentation and continued focus on our operation efficiencies. These 17:56 17 minutes, 56 seconds efforts are complemented by technology led monitoring and discipline execution enabling a more predictable and efficient energy cost profile. Our 18:06 18 minutes, 6 seconds profit after tax grew by 0.8% year-on-year and 0.9% quarteron quarter to rupees 17.9 billion. The moderate 18:14 18 minutes, 14 seconds year-on-year growth is a result of higher base due to onetime reconciliation benefits in quarter 4 last year as I explained earlier. Now moving on to fully performance for FI26. 18:24 18 minutes, 24 seconds Our reported gross revenues stood at rupees 325 billion growing by 7.9% year-onear while core core revenues were up 9% yearon year to rupees 209 billion. 18:35 18 minutes, 35 seconds Deported was rupes 180 billion down 13.8% yearonear and profit after tax stood at rupees 71.4 billion a decrease 18:44 18 minutes, 44 seconds of 28.1% yearon year. Kindly note that the FI25 included a substantial write back of rupees 51 billion relating to 18:53 18 minutes, 53 seconds collection of overdue receivables from a major customer. So on a normalized basis excluding one-offs, Eida and PAT grew by 19:00 19 minutes 11.4% and 13% respectively. Our return ratios remained largely stable with reported pre-tax return on capital 19:08 19 minutes, 8 seconds employed and post tax return on equity standing at 20.2% and 19.8% respectively on a trailing 12-month basis. We had 19:17 19 minutes, 17 seconds significant free cash flow generation of rupes 11.1 billion in quarter 4 and rupes 37.6 billion in fular fi26 and 19:25 19 minutes, 25 seconds subsequently the board has recommended final dividend of rups 14 per share reflecting improved visibility on cash flows and our commitment to reward 19:32 19 minutes, 32 seconds shareholders. To conclude, FI26 reflects strong financial performance underpinned by healthy collocation additions and 19:40 19 minutes, 40 seconds disciplined execution and our ability to capture major share of rollouts by our key customers. Ongoing demand momentum 19:47 19 minutes, 47 seconds and consistent collections along with our focus on cost optimization and operational efficiencies provide strong visibility into future cash generation. 19:56 19 minutes, 56 seconds So with this I will now hand it back to the moderator to open the floor for questions. Thank you. Thank you very much sir. 20:05 20 minutes, 5 seconds Ladies and gentlemen, we will now begin the question and answer interactive session for all the participants who are connected to audio conference service 20:12 20 minutes, 12 seconds from chorus. Due to time constraints, we would request if you could limit the number of questions to two to enable 20:20 20 minutes, 20 seconds more participation. Hence, management will take only two questions per participant to ensure maximum participation. 20:28 20 minutes, 28 seconds Participants who wish to ask questions may please press star and one on their touchstone enabled telephone keypad. 20:36 20 minutes, 36 seconds On pressing star and one, participants will get a chance to present their questions on first inline basis. 20:44 20 minutes, 44 seconds to ask a question. Participants, you may please test star and one. 20:56 20 minutes, 56 seconds The first question is from the line of Risha from HSBC. Please go ahead. 21:02 21 minutes, 2 seconds Hey, hi. Uh, thanks for the opportunity and congrats to the management for dividend distribution and starting from 21:10 21 minutes, 10 seconds there. So we have paid around 100% of this year's free cash flow. Um but how should we think about the additional free cash flow we had received or 21:17 21 minutes, 17 seconds generated last year which was on account of uh reversal of dues from BI if if I'm not mistaken they were also supposed to 21:26 21 minutes, 26 seconds be made available for distribution and secondly I would like to understand more about the capeex going forward uh 21:34 21 minutes, 34 seconds understand the green capex companies making and higher maintenance required on the aging portfolio but if you can have some guidance over the next couple 21:41 21 minutes, 41 seconds of years how should be the capeex trend as it directly impacts the free cash flow and dividends. 21:49 21 minutes, 49 seconds Sure. So maybe I'll answer the first part then you can take up the the capex. 21:53 21 minutes, 53 seconds See the the board evaluated the FCF situation and the debt levels that we want to maintain and decided accordingly to distribute the FCF of FI26 and as I 22:02 22 minutes, 2 seconds mentioned the endeavor will remain to follow steady and progressive distri distribution going forward. So that's the the thinking behind the dividend. 22:10 22 minutes, 10 seconds Maybe Vikas you can touch base on the capital. So thanks for the question Rishab I think on the capeex uh just to give you the big picture and as we've 22:17 22 minutes, 17 seconds also explained earlier uh 70% of the capex that we spend is growth oriented which basically uh leads to growth in 22:26 22 minutes, 26 seconds our uh revenue and uh bottom line um and just about 25% is basically something 22:33 22 minutes, 33 seconds that goes towards replacement maintenance and so on. So I think uh as long as there is growth and uh there is 22:41 22 minutes, 41 seconds basically uh you know uh tower build order etc. I think the uh the capex will sort of uh you know be steered towards 22:50 22 minutes, 50 seconds that. Uh as far as the future guidance is concerned I think we still have uh a very healthy order book. So while we 22:58 22 minutes, 58 seconds don't give any uh sort of forward-looking numbers but broadly speaking I think uh we are sort of looking at a very good order book and we 23:06 23 minutes, 6 seconds continue to see uh you know growth oriented capex going forward. 23:12 23 minutes, 12 seconds Uh just couple of followup uh on the free cash flow and the debt that you had mentioned like XT liabilities uh we are 23:20 23 minutes, 20 seconds sitting on net cash right so uh if is there anything that the management is foreseeing um on a major investment area 23:29 23 minutes, 29 seconds so that we want to maintain our debt levels and you have mentioned the order book remains uh healthy does this does 23:36 23 minutes, 36 seconds this order book includes expansion in Africa as well or is it just India No, I think what Vikas is referring is 23:44 23 minutes, 44 seconds primarily to the order book of of India and as I mentioned in my commentary, I think the Africa expansion is just starting. It's a long-term strategy. So 23:53 23 minutes, 53 seconds the the portion of capex for Africa is not going to be that significant to start with. uh so I think it's order book that he's referring to is primarily 24:01 24 minutes, 1 second on the um on the India side and as far as the um you know debt and FCF situation is concerned I think keeping 24:09 24 minutes, 9 seconds capital allocation in mind and all the uh growth opportunities coming up that's where the board decision came to distribute the FCF for FI26 24:19 24 minutes, 19 seconds okay I'll go back to the queue thank you thank you thank you next question is from the line of Satin Salon from Bank of America. 24:30 24 minutes, 30 seconds Please go ahead. 24:32 24 minutes, 32 seconds Thank you for the opportunity. I have two questions. Uh first question, Vikas, I just wanted to clarify on the dividend policy. Well, Proud did mention on 24:40 24 minutes, 40 seconds steady and progressive distribution. Is there a dividend policy or is it more ad hoc where every year the board will 24:47 24 minutes, 47 seconds consider based on the cash flows and plan and give dividend? And if there is a dividend policy then can you clarify what is a dividend policy? 24:58 24 minutes, 58 seconds Yeah sure Sachin. Uh so uh the dividend policy uh is uh first of all available on our website. Uh broadly 25:07 25 minutes, 7 seconds uh what it says is uh the company and the board will consider uh distribution of the free cash flow of the company at the year end subject to the working 25:15 25 minutes, 15 seconds capital requirements of the company and subject to few other uh conditions. So uh based on that uh even for this year 25:24 25 minutes, 24 seconds the the uh free cash flow of the company the financial results etc was presented and uh uh the board decided to 25:31 25 minutes, 31 seconds distribute the full cash generation uh of this year as a dividend which is uh what is reflected in the 14 rupees 25:40 25 minutes, 40 seconds no minimum payout kind of an amount which is out there every year the board will consider that that's right that's Right. 25:49 25 minutes, 49 seconds Got it. Um, second question. One of your uh major customer contract has expired and from what we understand that customer has not renewed the contract. 25:58 25 minutes, 58 seconds Uh, can you give some color and updates here and if the customer decides not to renew contract then what kind of impact would we see? 26:08 26 minutes, 8 seconds So such first of all I think there is we have contract for each tower right. So I 26:14 26 minutes, 14 seconds think the the there is no broad contract expiry. I think there are certain tenencies which which which fall under that bucket. It's not the entire 26:23 26 minutes, 23 seconds portfolio. Secondly, I think if you look um from our portfolio point of view over the last 3 four years, we have built 26:32 26 minutes, 32 seconds quite a bit of resilency by deploying large scale towers and collocations. So that portfolio is actually the the expired portfolio is actually very small 26:40 26 minutes, 40 seconds portion of the entire portfolio. So while we continue to work with the customer to see how we can continue to uh provide the stickiness by providing 26:47 26 minutes, 47 seconds high levels of service but over the last 3 four years and continuously what we are doing we trying to mitigate any such 26:54 26 minutes, 54 seconds risk that is there right so we'll keep the situation we'll keep monitoring the situation and keep growing uh the portfolio across uh other customers as well. 27:05 27 minutes, 5 seconds Got it. uh and you know when I look at your tenency ratio for last 3 4 years it has come down and continues to come down 27:13 27 minutes, 13 seconds so directionally that's a trajectory we should uh think about going ahead as well right uh I would not I would not give you a 27:21 27 minutes, 21 seconds outlook in that format because see last few years was determined by deploying tenencies towers for one major customer 27:29 27 minutes, 29 seconds see as the second customer comes on board and sharing and uh giving a collocation on existing tower is beneficial icial for both customer and 27:37 27 minutes, 37 seconds us in terms of what the cost efficiency brings. So as the second customer comes uh and get their network expansion 27:44 27 minutes, 44 seconds going. I would not say the trend will continue in that direction. Uh however it is it is depending on the pace on how the second customer comes on board. 27:52 27 minutes, 52 seconds Sorry I'll just add Sachin. I think if you look at the trend for the last five or six quarters we have been very stable which basically means uh you know uh 28:02 28 minutes, 2 seconds there is basically more tendency or more collocation addition than the tower additions right so I think uh the stability is a good thing and going 28:10 28 minutes, 10 seconds forward as the second customer comes on board we might actually see some improvement also and lastly one small followup out there 28:18 28 minutes, 18 seconds you did mention on APRA you know you're on talks with primary customer beyond the primary customer are you in talks with uh some incremental customers out 28:26 28 minutes, 26 seconds there or as of now the focus is only on one customer out there no so I think Sachin we are we are in we are talking to other customers as well 28:35 28 minutes, 35 seconds but as I said I've said in the previous call as well is our long-term strategy is to get started and establish ourselves with the anchor customer and I 28:42 28 minutes, 42 seconds think as we'll be present in the market of course if we are offering better comparative prices uh sorry cost SLA and 28:49 28 minutes, 49 seconds efficiency the second customer would also be attracted to come towards us so I The discussions are far more advanced with the anchor customer and the other 28:57 28 minutes, 57 seconds customers are being engaged depending on where we are getting the setup done. Got it. Thank you and all the best. 29:04 29 minutes, 4 seconds Thank you. 29:07 29 minutes, 7 seconds Thank you. The next question is from the line of Vive Kanan Subraman from Ambit Private Limited. Please go ahead. 29:16 29 minutes, 16 seconds Yeah, thank you for the opportunity. So if I look at the rental income growth adjusted for some of the one-offs, my 29:25 29 minutes, 25 seconds inference is that the revenue growth is around 4.7% yearonear. Could you help us understand the the drivers of this in 29:34 29 minutes, 34 seconds terms of uh let's say the escalation uh revenue increase contribution from 29:41 29 minutes, 41 seconds escalation then uh new towers and uh tenencies and uh negative effect of discounts if any 29:52 29 minutes, 52 seconds uh I'll take that van I think see I I guess you're referring to the uh growth fullear growth of uh um uh 9% uh that we 30:02 30 minutes, 2 seconds have reported uh am I right service revenue so I was referring to the 4Q fi26 rental 30:10 30 minutes, 10 seconds income and I just took out some of the oneoffs that were there in the base period and also the inorganic uh on the 30:20 30 minutes, 20 seconds tower purchases that you had done it I stripped that revenue out as well from both periods to arrive at 4.7% 30:29 30 minutes, 29 seconds uh Well, I I think I'll just maybe explain the number that we have reported. Uh I don't know how the 4.7% 30:37 30 minutes, 37 seconds uh is being calculated. Maybe we can take that offline. But for the quarter, we have reported uh service revenue year-on-year growth of 5.3%. 30:45 30 minutes, 45 seconds Uh so as you can see that's largely driven by the collocation growth. If you look at our collocation numbers yearon year, uh you would see a growth of 5.6%. 30:55 30 minutes, 55 seconds And then the other growth drivers are typically the annual escalations that we have on our sites as and when they complete the anniversary. Uh also bear 31:04 31 minutes, 4 seconds in mind like I explained in my narrative uh there was a one-time settlement benefit in the same quarter of last year that added 2.1 percentage point to our 31:12 31 minutes, 12 seconds growth. So uh broadly I mean if you uh you know adjust for that then we are closer to 7% growth uh uh in the quarter 31:21 31 minutes, 21 seconds uh year on year 7 7 and a2 right but then the 7 and a half% growth is also because you acquired towers from 31:29 31 minutes, 29 seconds airel at the end of the quarter right last year but this in the first there was an inorganic element in that yeah that's 31:36 31 minutes, 36 seconds so the organic growth will be close to 5% still right or is there yeah five five and a half that's right that's right Okay. So just to drill 31:45 31 minutes, 45 seconds further on this the 5 and a half% growth if I look at it against the backdrop of collocation growth of 5.6% annual 31:53 31 minutes, 53 seconds escalation of 2 and a half%. Why why is the growth so muted compared to 10 6% growth? 32:01 32 minutes, 1 second So uh like I explained there was also just like we had a reconciliation uh onetime settlement benefit in the same 32:09 32 minutes, 9 seconds quarter of last year. uh this year uh we had some impact. So as a result uh uh the growth was also slightly muted 32:18 32 minutes, 18 seconds because of that and it is not fully reflecting the growth in the footprint. 32:26 32 minutes, 26 seconds Fair enough. 32:28 32 minutes, 28 seconds Understood. And and your prognosis in terms of the order book visibility and organic growth adjusted for some of 32:36 32 minutes, 36 seconds these factors. How how should we think about it? Let's say for FI 27 or 28 if you have any color 32:44 32 minutes, 44 seconds I think I would hesitate in giving numbers because uh as you know we really don't give any forward-looking numbers but broadly I think uh in terms of the 32:52 32 minutes, 52 seconds rollout momentum and all uh of course the uh while I mentioned that the order book is healthy but at the same time we need to also take into consideration the 33:01 33 minutes, 1 second fact that uh there is a you know a supply chain disruption that uh we are facing uh because we are in the middle of 33:08 33 minutes, 8 seconds geopolitical situation. I think Pure can elaborate that maybe later on but uh you know we need to be a bit cautious when 33:15 33 minutes, 15 seconds we when we talk about forward-looking uh views. 33:18 33 minutes, 18 seconds Yeah. So I I think as as Vikas was mentioning there is a strong order book uh looking ahead as well for the next 33:25 33 minutes, 25 seconds few quarters. However, I think given the situation and there is a little bit of a tightness in the market in terms of tower supplies because that is dependent 33:33 33 minutes, 33 seconds on LPG availability. uh having said that we have managed to mitigate some of those things by planning by supply chain 33:40 33 minutes, 40 seconds working with the partners etc. So hence looking forward there are some factors which are not you know entirely predictable but at the basis of it the 33:48 33 minutes, 48 seconds order books look strong whatever supply chain disruptions happen we'll we are uh putting efforts to mitigate them and and 33:55 33 minutes, 55 seconds continue to deploy uh towers uh to meet the order book. 34:01 34 minutes, 1 second Okay, great. Uh my last question is on the dividend. So at the time of the board resolution that you had sought to 34:08 34 minutes, 8 seconds acquire to powers from ATM, you had mentioned that the funding of those towers will happen using debt and also 34:15 34 minutes, 15 seconds the commentary uh in prior periods had suggested that there will be some 34:21 34 minutes, 21 seconds element of distribution of fiscal 25 cash flow also cash across also which uh 34:30 34 minutes, 30 seconds which the management perhaps at a certain point of time maybe last year the management had taken a view that it was uh in the best interests of conservatives to hold on to that cash. 34:40 34 minutes, 40 seconds Why has that cash not been released and only the cash flow generated for FI26 been decided to mark out? 34:51 34 minutes, 51 seconds So honestly speaking I don't think the board compartmentalized the the cash flows in that category. I think what the board did is they validated the full FCF 34:59 34 minutes, 59 seconds looked at the debt levels that we want to maintain and decided to distribute the FCF by 26 and as I said earlier the board is committed to distribute the uh 35:08 35 minutes, 8 seconds the CF to the shareholders and try to maintain the steady and progressive distribution going forward. Anything else you want to add? 35:14 35 minutes, 14 seconds No, I think it's a very holistic view one needs to take. I mean uh see we are in a very dynamic situation right and uh uh basically given the current situation 35:24 35 minutes, 24 seconds uh the current debt levels etc. I think uh the board has fully considered all aspects and finally decided to 35:30 35 minutes, 30 seconds distribute uh uh you know uh dividends to the extent of about 37 38 billion uh which uh I mean whichever way you 35:39 35 minutes, 39 seconds look at it I mean like what you said I mean you just can't comp compartmentalize all these things within let's say how much is pertaining to that 35:46 35 minutes, 46 seconds particular transaction and how much is uh from this year's cash and so on. uh but broadly how we are looking at it is uh the the cash flow for full year has been fully distributed. 35:57 35 minutes, 57 seconds Okay. All right. Thank you. 36:02 36 minutes, 2 seconds Thank you. The next question is from the line of Sanjay Chan from ICICI securities. Please go ahead. 36:09 36 minutes, 9 seconds Yeah. Uh thanks. Thanks for the opportunity. I have a few of them. First on the maintenance part which you spoke 36:17 36 minutes, 17 seconds which has led to a higher cost uh with us in the opening remark. Uh just wanted to understand is was this a one-time 36:23 36 minutes, 23 seconds exercise or you think because the towers have been aging now uh this will be an annual phenomena for us and hence the cost base has got reset. 36:37 36 minutes, 37 seconds No Sanjay I I don't think that is the case. What if you look at typically historically as well I mean Q4 is 36:44 36 minutes, 44 seconds typically marked by two things one is you know this is the Q3 and Q4 are the quarters where we have a clear weather so lot lot of the operational and the 36:53 36 minutes, 53 seconds tower maintenance activities are scheduled in this part of the quarter because the weather supports it and secondly in Q4 as well what we are doing is we're preparing for the coming season 37:02 37 minutes, 2 seconds so I think typically the network maintenance activities are uh lopsided towards Q3 and Q4 however if you remember in Q1 call itself. What we've 37:11 37 minutes, 11 seconds done is we have taken a conscious effort to spend uh you know uh spend uh certain 37:18 37 minutes, 18 seconds part of cost on improving the tower doing more tower maintenance strengthening activities as the portfolio is at a certain age. However, it is not a structural cost that is 37:27 37 minutes, 27 seconds going to permanently increase. There is some parts which are routine activities that is going to be continuously done with the rigor of making sure it is done. So I don't think I would say the 37:35 37 minutes, 35 seconds cost basis fundamentally reset. I think our cost per tower still remains um you know in line or actually if you look at the holistic picture from the last 3 37:43 37 minutes, 43 seconds four years our cost per cost per tower has actually gone down but there are certain elements of cost on absolute cost that show up so just 37:51 37 minutes, 51 seconds look at the tower count and look at the cost at that uh mirror sanjes I just want to add one thing for perspective I mean while you're looking at a 3 month 38:00 38 minutes uh but what is also important is to look at the full year right so sometimes you have basically activities skewed towards a particular the quarter. But from a 38:07 38 minutes, 7 seconds fulio perspective, what you will see is uh the tower cost inc maintenance cost increase is not even reflecting the volume increase because we are 38:15 38 minutes, 15 seconds offsetting a lot of these increases uh either due to volume or aging portfolio etc through the various efficiency initiatives that we are driving. 38:25 38 minutes, 25 seconds So because it's more like a seasonality it sounds like a seasonality rather than a maintenance in a way you could say seasonality because 38:33 38 minutes, 33 seconds operations is never binary in that sense. I think seasonality portfolio maintenance I think all this come together and that's what Vikas is saying 38:40 38 minutes, 40 seconds you have to look at the fier you have to look at the volume uh of towers being added and look at the cost from that perspective 38:52 38 minutes, 52 seconds uh the second question on the single tenency uh the assumption was that as 38:58 38 minutes, 58 seconds the vodafone scales up um the the single tenency task will come down uh we don't have data for this quarter. But if I 39:06 39 minutes, 6 seconds analyze the data for Q3, uh it appears that we have added more single tenency to not just accommodating Barti but also accommodating Vodafone. 39:17 39 minutes, 17 seconds Uh will this trend continues and uh what is driving additional tenency addition 39:23 39 minutes, 23 seconds for Vodafone? I thought uh uh we have covered well pan India uh during the bharti rollout. 39:32 39 minutes, 32 seconds I'm I'm not quite clear on the question but let me try to answer. At the at the at the end of the day both in Q3 and Q4 if I'm not wrong correct me if I'm wrong 39:40 39 minutes, 40 seconds our collocation additions have been higher than the tower additions. So fundamentally there are single tenency towers building get converted to 39:47 39 minutes, 47 seconds multi-tenant top. So that is the first point. Secondly for any customer to expand they have their own network expansion strategy. So while bulk may 39:55 39 minutes, 55 seconds come through second tenant uh as a collocation addition but there will be some single tenant towers as well being added. So any customers and expans look 40:02 40 minutes, 2 seconds at both the first priorities to come as a second tenant and the and then but the network requirements or their network design will be based on on the addition 40:11 40 minutes, 11 seconds of a uh a tower whether it's a single tenant or a multi-enant. So I would I would leave it that that 40:19 40 minutes, 19 seconds no no just let me probably clarify on that question. Uh last last quarter we added 3,800 new towers. uh Bharti site 40:28 40 minutes, 28 seconds count went up by u 1150 1200 uh that means we have added around 2,000 more 40:36 40 minutes, 36 seconds tars in previous quarter than what bark has added which I would attribute it to vodafone uh which was uh appear to quite 40:45 40 minutes, 45 seconds a large number uh from a uh fresh tower addition for vodafone the 40:52 40 minutes, 52 seconds base assumption was that uh considering both have an 1800 MHz frequency RF planning uh they would 41:00 41 minutes a lot will o overlap each other's network but it appears that we will require to add more tower when vodafone uh roll out starts. 41:09 41 minutes, 9 seconds Yeah, Sun I think there's a correction. 41:12 41 minutes, 12 seconds I think the assumption that every single tower that the difference that you mentioned between 1100 and 3,000 is coming from the other customer. I think 41:22 41 minutes, 22 seconds there is some uh there's some gap to that because there are certain towers we also add uh for either customer where 41:29 41 minutes, 29 seconds they are while they may not see a net addition uh in their portfolio but it is typically at the end of the tenure they move certain uh towers from other uh 41:38 41 minutes, 38 seconds incumbents to to indust right so I think there is a portfolio that we also add in 41:45 41 minutes, 45 seconds our setup which is moving the uh tower of the teny from someone else to indust So I think it's not a direct subtraction 41:53 41 minutes, 53 seconds that total indust minus one customer is equal to the other customer. So I think there's a big element of uh movement of tower from one tower company to other 42:02 42 minutes, 2 seconds which is not a net addition for a customer. No that's fair enough. Uh got the point. 42:07 42 minutes, 7 seconds Just one last question on Africa. When should we expect operations to start? 42:11 42 minutes, 11 seconds Probably 6 months down the line will be a fair. 42:14 42 minutes, 14 seconds Uh as I mentioned earlier I think um uh we are we are at a very close stage of 42:22 42 minutes, 22 seconds starting our first tow our deployment in Zambia. Um I think 6 months is more than a fair estimate. I think it's probably 42:29 42 minutes, 29 seconds earlier than that. Uh but we are we've got the license and we are on the ground now. So yes we are looking to put our first hour very soon. 42:37 42 minutes, 37 seconds Got it. Got it. And we have set up knock and all right in Africa or we will do it through India. uh I think we will we will find a solution. I think we will 42:45 42 minutes, 45 seconds we'll have to depend whether we manage from here or whether we do it locally. I think we'll have to see right but I think uh as of now the focus is to deploy the towers. 42:54 42 minutes, 54 seconds Got it. Got it. Thanks for your thanks for all those answers and best of club for the coming quarters. Thank you. Thank you sesh. 43:02 43 minutes, 2 seconds Thank you. A reminder to all the participants that you may please press start and want to ask questions at this time. 43:10 43 minutes, 10 seconds We'll take the next question from the line of Arun Prasad from Evendis Park. Please go ahead. Thank you. Good afternoon everyone. 43:19 43 minutes, 19 seconds Thanks for the opportunity. Um because uh uh my question once again uh going to 43:26 43 minutes, 26 seconds the uh sequential drop in the EIDA uh that we have said uh okay if I if I put it on a perver basis uh how we are 43:36 43 minutes, 36 seconds looking at is that there is a drop in a aida per on a sequential basis roughly around,500 43:43 43 minutes, 43 seconds rupees per month but not everything is coming from the same maintenance uh Because again on a perver basis on a 43:53 43 minutes, 53 seconds reported basis it is just contributing 20%age uh of the increases decreases coming from the maintenance it seems large part 44:02 44 minutes, 2 seconds of the perver decrease on a sequential basis is coming from the revenue per or sharing revenue per so uh can you help us reconcile this difference? 44:15 44 minutes, 15 seconds Um so um Arun I think uh there are basically uh you know more than one there's more than one reason for this. 44:22 44 minutes, 22 seconds So of course there is uh like I explained there is some one-off sitting in the revenue which is because of the the settlements that have happened in 44:31 44 minutes, 31 seconds quarter 4. So that's impacting the top line as well as the AIDA. Apart from that um if you see the other lines I 44:40 44 minutes, 40 seconds think uh even the network maintenance as we were explaining uh is growing uh 5.6% 44:47 44 minutes, 47 seconds quarteron quarter which is largely driven by the activities maintenance activities etc that we undertook in quarter 4. So that has impacted. Apart 44:56 44 minutes, 56 seconds from that, if you look at uh the um the other expenses, we had some one-off there also. Uh and that is also 45:05 45 minutes, 5 seconds basically showing uh a big quarteron quarter increase because of the one-off benefits sitting in the the previous 45:11 45 minutes, 11 seconds quarter. So there are basically two three reasons why uh Aida sequential performance in quarter 4 has been uh 45:20 45 minutes, 20 seconds slightly worse off than the previous quarter. uh but broadly I mean we are still talking about a 55% AIDA margin 45:28 45 minutes, 28 seconds which is quite healthy and uh from a full year perspective I think uh we are pretty much in line with our expectation 45:35 45 minutes, 35 seconds of uh uh 55 uh% plus sort of an AIDA level 45:43 45 minutes, 43 seconds okay the oneoffs that you are saying you are that is there in the Q3 or on a revenue side you are saying that the 45:50 45 minutes, 50 seconds negative oneoff is there on the revenue only on the Q4 four but on the cost side you are saying that one off is there in the Q3 cost 45:58 45 minutes, 58 seconds that's right so there is a positive oneoff in Q3 and there's a negative oneoff in Q4 so somewhere that is the impact of that is getting more 46:05 46 minutes, 5 seconds pronounced in the AITA okay uh okay okay no problem I I'll I'll take 46:15 46 minutes, 15 seconds this offline separately my second question again uh I don't want to look at it from the Q4 basis but if I look 46:23 46 minutes, 23 seconds from the second half basis I I I see two trends. One is that our exits in the 46:30 46 minutes, 30 seconds second half uh is twice that of our usual annual run rate. Uh I'm talking 46:37 46 minutes, 37 seconds about second of 2026. Second uh our energy margins uh in second half is 46:44 46 minutes, 44 seconds again better than either the first or the second half in the previous year. 46:50 46 minutes, 50 seconds this is something that is uh you know uh how should we look at this? 46:55 46 minutes, 55 seconds So I think see I'll answer both of them one by one operationally and then you can comment on the numbers. See as far as the exits are concerned or the churn 47:04 47 minutes, 4 seconds is concerned I think it is I mean most of these churns are bou business usual kind of a churn and I think typically if 47:11 47 minutes, 11 seconds you look at a uh they typically get replaced by a relocation teny and it is typically done because of safety reasons 47:18 47 minutes, 18 seconds or landlord renewal. So the number is not that concerning for us because typically we get offset by a relocation 47:25 47 minutes, 25 seconds uh site uh that we make right so from a 10 net tenency point of view there is no loss right and so this is an operational 47:32 47 minutes, 32 seconds churn that we um in in a large portfolio like this we expect this to happen right on the energy margin you know I mean we 47:39 47 minutes, 39 seconds have discussed this earlier as well H2 seasonally is much better than H1 so by default the operating cost or the the 47:47 47 minutes, 47 seconds impacts or the variations s that we see are lower in the second half than in first half. So if you look historically as well, H1 has a uh has a so it's 47:57 47 minutes, 57 seconds primarily H2 is primarily driven by a seasonal uh improvement and H1 is primarily impacted by a seasonal impact. 48:03 48 minutes, 3 seconds So I think unless I don't I don't think there's anything major uh sort of uh something different that I have to say. I think what is very 48:10 48 minutes, 10 seconds important to bear in mind is H1 has clearly more weather related impacts and weather dis uh disruptions in our 48:19 48 minutes, 19 seconds operation. H2 is generally uh better from that perspective and hence most of the maintenance and safety activities that we undertake are more skewed 48:27 48 minutes, 27 seconds towards H2 which basically means as and when we build new towers and try to relocate from unsafe towers and so on you see more exits in H2 than H1 right 48:36 48 minutes, 36 seconds so there's always a seasonality angle in our business but energy margins in H2 is even lower than the last year's H2 so that is like 48:45 48 minutes, 45 seconds to make comparison right how do you explain Energy margin Arun I would suggest see one is energy margin is a function of revenue 48:54 48 minutes, 54 seconds and cost and how we settle the differences right uh the seasonality will clearly show you the cost trend and you will see the cost trend is better in 49:02 49 minutes, 2 seconds H2 versus H1 the margin trend is a function of when you are settling things and if we are settling things more in H2 then then to that extent I think uh you 49:10 49 minutes, 10 seconds know it is a function of how things are getting settled or the timing of settlement right so I I would suggest don't read too much into the margin uh 49:17 49 minutes, 17 seconds when it comes to margin you know timing wise things could vary look at full year uh when it comes to cost look at seasonality yeah I think look at the margin on a 49:26 49 minutes, 26 seconds year-on-year basis if if I'm not wrong I think the margin this year is uh same or even slightly better than last year so I 49:33 49 minutes, 33 seconds think look at a full year uh from an energy margin perspective sorry while we are on this energy margin 49:40 49 minutes, 40 seconds topic uh just hypothetically say if the diesel price or a grid electricity price 49:46 49 minutes, 46 seconds has to go up Our margins on a absolute margins uh as a uh will will will remain 49:55 49 minutes, 55 seconds say as a percentage will it remain same and hence our absolute negative margin and energy will go up or the other way 50:03 50 minutes, 3 seconds around the negative energy margin remains same but as a percentage it will reduce. 50:11 50 minutes, 11 seconds See at the end of the day um the change in when when it happens as a price it 50:17 50 minutes, 17 seconds impacts revenue and cost right so it impacts both revenue and cost on almost a similar basis. So from a 50:24 50 minutes, 24 seconds reconciliation perspective uh I think the percentage may change because there is a there will be some sort of an absolute uh difference but there will 50:32 50 minutes, 32 seconds not be a material change from a percentage margin point of view. Of course the cost and revenue will change accordingly. 50:40 50 minutes, 40 seconds So, so that so my understanding is if percentage remains same then increasing price down. 50:48 50 minutes, 48 seconds Yeah, I would not say exactly the same. 50:50 50 minutes, 50 seconds I think there will be an impact on the the margin itself but the larger impact will be seen on the absolute revenue and absolute cost. 51:00 51 minutes Okay. Okay. Okay. Uh uh one final accounting clarification. uh I think earlier we were talking about the annual 51:09 51 minutes, 9 seconds escalation uh rate reflecting as part of the revenue growth but my understanding is the revenue equalization standards 51:17 51 minutes, 17 seconds would ensure that escalation will not be should not be contributing to the uh at least on a annual revenue growth right 51:26 51 minutes, 26 seconds on a per basis there are a lot of nuances in this uh in terms of the lease accounting I would suggest we take this offline 51:35 51 minutes, 35 seconds um we and take you through the uh workings offline. Understood. Yes. Thank you very much. 51:42 51 minutes, 42 seconds You Thank you. The next question is from the line of Sor Honda from City Group. 51:50 51 minutes, 50 seconds Please go ahead. Um yeah, thank you for the opportunity. 51:54 51 minutes, 54 seconds Um these are actually both follow-ups to previous questions. Um firstly if you um just back on the question of your tower edition say which have averaged close to 52:02 52 minutes, 2 seconds around 4,000 odd over the last three quarters and one of your large customers has been adding one and a half 2,000. So 52:10 52 minutes, 10 seconds you said the difference could be partly because of new tower additions uh for other customers as well as some 52:17 52 minutes, 17 seconds potential shown that happens. Uh would one of these two factors have a higher bearing than the other? Just trying to get a sense of which one could be a bigger contributor. 52:28 52 minutes, 28 seconds No, I I I would I would not put a number because it varies by quarter. At the end of the day, it's a it's a net tenency addition to India. So, it does impact 52:36 52 minutes, 36 seconds the revenue positively. That is the main takeaway. But, uh the split is is not a fixed number I say. 52:44 52 minutes, 44 seconds Okay. So where I was coming from is because obviously there's a lot of this um you know chatter about u renewables for one of your the third customer and 52:53 52 minutes, 53 seconds if that could be to churn for you so the point I was trying to add is is there a potential offsetting factor do these 53:00 53 minutes cancel each other I mean I know you've said that there are a lot of considerations if if a if a tenant chooses to move out of uh to move from 53:09 53 minutes, 9 seconds one tower code to the other but I was just trying to get some more granularity on See if I was you, I would primarily look at the net additions of the tower 53:17 53 minutes, 17 seconds portfolio tenencies. I think that's where the uh the because churn gets offset by relocation. It's not a net tenency addition but it's not a net 53:25 53 minutes, 25 seconds loss. However, if we get a tower from some somebody else where the current operator is operating with someone else and move to India, that's a net addition to indust. So I would look at the 53:34 53 minutes, 34 seconds overall net addition of towers and tendencies to index to make your own trends and this is where you're saying that so 53:42 53 minutes, 42 seconds far the order book pipeline is quite all right for the coming few quarters. 53:47 53 minutes, 47 seconds Okay, thank you. And just my second question was uh on the energy margins now with the 50% increase in bulk diesel 53:55 53 minutes, 55 seconds prices how does that impact your energy cost? So is there a lead lag impact where maybe it hits you first and then 54:03 54 minutes, 3 seconds you pass it on. If you can just um you know provide some sort of color on this. 54:08 54 minutes, 8 seconds No I there is no lag I think we build actually on actual. So as I me I was explaining earlier the same question was earlier that once the retail pricing if 54:17 54 minutes, 17 seconds the retail pricing has an impact it'll impact both our revenue and cost on an equal basis. uh the net margin may have a slight impact uh towards negative side 54:26 54 minutes, 26 seconds but it's the major impact comes on the uh revenue and cost on equal basis right so there is no lag we as it actually happens 54:35 54 minutes, 35 seconds so this actually did happen in March because bulk diesel prices were increasing industrial you know that was industrial 54:42 54 minutes, 42 seconds diesel price it was not the retail which we we buy retail diesel oh I was under the impression that our companies use bulk diesel that's not the case is Honor. No. 54:53 54 minutes, 53 seconds Okay. Great. Thank you for the clarification. Thank you. Thank you. Thank you. 55:00 55 minutes Ladies and gentlemen, we'll take the last question for today which is from the line of Vidant Sada from Nirmal Bank Securities Private. Please go ahead. 55:11 55 minutes, 11 seconds Thank you for the opportunity. Am I audible sir? Yeah. Yeah. 55:15 55 minutes, 15 seconds Yes. Uh just to clarify on our renewals since uh your contracts are structured tower wise or side sitewise as you said 55:23 55 minutes, 23 seconds with respect to reliance z for the tower wise contracts that have expired have there been any non-renewables or site 55:30 55 minutes, 30 seconds exits from zo no I think there are I mean for all the customers we always have a portfolio 55:39 55 minutes, 39 seconds which are non-renewed and we work with them and they get renewed. Yes, even for um our go there are certain tendencies that have expired uh which are uh which 55:49 55 minutes, 49 seconds are still operating and some some churn have happened which which we report. So I think it's not a uh one or the other way. It's not that all the uh 55:57 55 minutes, 57 seconds non-renewed have expire have been churned. That's not the case. In fact, very minor percentages have been ch. 56:05 56 minutes, 5 seconds Okay. And so the contracts which we have re renewals happened so that are at the same commercial terms as earlier 56:12 56 minutes, 12 seconds contracts. So no incremental discount or price concession we have given to them. 56:18 56 minutes, 18 seconds Yeah. If the renewal doesn't happen, I think we continue operating the same way. That's helpful. Thank you so much. 56:25 56 minutes, 25 seconds Thank you. Thank you sir. 56:30 56 minutes, 30 seconds At this moment I would like to hand over the call proceedings to m Mr. Pratusa for final remarks. Thank you and over to you. 56:38 56 minutes, 38 seconds To conclude FI26 reflects consistent execution across our strategic priorities with our core business continuing to demonstrate resilience and 56:46 56 minutes, 46 seconds steady growth supported by healthy collocation additions and sustained customer network expansion. Our plan to expand into Africa is a testament to our 56:53 56 minutes, 53 seconds agile approach to growth which will also be enabled by our investments in digital and AID capabilities. 56:58 56 minutes, 58 seconds Given our proven execution track record, focus on efficiency and long-term capital discipline, we remain confident in our ability to deliver a sustainable 57:06 57 minutes, 6 seconds growth and create long-term value for all our stakeholders. Thank you and have a good day. 57:14 57 minutes, 14 seconds Thank you members of the management. 57:16 57 minutes, 16 seconds Ladies and gentlemen, this concludes the conference call. You may now disconnect your line. Thank you for connecting to audio conference service from correspond and have a pleasant day.