Indus Towers, India’s leading passive telecom infrastructure provider and a subsidiary of Bharti Airtel, reported a 9.8% year-on-year decline in net profit to ₹1,737 crore for the June 2025 quarter (Q1 FY26). This comes despite the resumption of timely payments by Vodafone Idea, which has long struggled with liquidity challenges.

The company posted a 9.1% increase in revenue to ₹8,058 crore, driven by continued network expansion. Indus Towers added 2,468 new macro towers, taking its total site count to 251,773, and boosted co-locations by 5,777, bringing the total to 411,212. However, the topline growth was overshadowed by a steep 29.2% surge in total expenses, which reached ₹3,667.5 crore.

Among the key cost pressures, power and fuel expenses rose 5.8% to ₹3,068.7 crore, while employee benefits and repair & maintenance costs climbed by 8.2% and 2.9%, respectively. The sharp rise in operating expenses severely impacted the company’s margins, raising concerns over sustainability amid rising input costs.

Indus Towers also wrote back ₹88 crore during the quarter, adding some cushion to its bottom line, though it wasn't enough to offset the cost burden entirely.

While timely payments from Vodafone Idea signal some easing of credit risk, the overall pressure on profitability highlights the ongoing challenges faced by telecom infrastructure companies in a high-inflation environment. The company’s performance will be closely watched in the coming quarters for margin recovery and operational efficiency improvements.