Suyog Telematics Limited (537259) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q3 and 9 months FY '26 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; Ms. Subhasita Lature, Whole-Time Director; Mr. Ajay Sharma, Chief Financial Officer; Mr. Tushar Shah, Business Head, India; and Mr. Suyash Lature, Business Development Manager. 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. Also, a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ended December 2025, the growth perspective and vision for the coming year, post which we will open the floor for Q&A. Over to the management team.

Good morning, everyone. I'm Tushar Shah. I'm heading business for Suyog as you all know. I will first give a presentation. I am sure you must have seen presentation by now. So over this call, I will just discuss a few slides, which are very important from investor perspective, and then we can go for Q&A and closure will be done by sir's remark. So I'll start my presentation right now. This presentation is for Q3 and December ending '26 -- '25. So in terms of revenue percentage from each operator, we have grown our revenue percentage in last quarter for Airtel and Vodafone. So we've done a decent amount of sites for Vodafone and Airtel upgrades are going on, which has again increased the Airtel percentage, which went a little bit down because of high volume done in Q3 last year for BSNL. In terms of absolute number, we have -- as of today, as of 31st December, our total tower count was 5,904 with tenancy of 7206. And as you know, all our USP, our government site, which is 1,000 plus, we have 4,000-plus small cell tenancies, and we have crossed 6,000 kilometers in fiber network. In terms of rollout, we have done all these sites which came in Q3 are macro sites. So our revenue per site has also grown because of the macro site rollout. So here this is a very slide important for the investor perspective with reference to our future growth. Like we have been telling from past 3 quarters, yes, there is a delay in plan. But now I think it's publicly available. There are statements from Minister and there are statements from Vodafone management. So if you see in last week, Vodafone has already declared INR 45,000 crore investment in the span of 3 years' time. And we have been -- I've been visiting -- personally visiting all the Vodafone offices from last one week, I've been to Maharashtra, I've been to Kolkata yesterday, today, I'm in Jaipur. So we are seeing a very encouraging number in terms of Vodafone rollout. They are planning around 13,000 to 15,000 sites in Q1 of next financial year. Planning has begun. They have almost finalized the site list. And I'm proud to say that Suyog is one of the most preferred partner in all these circles, which I have visited till date. So we are seeing a healthy business coming from Vodafone by end of Feb or March 1st week and rollout will start from Q1 next year. So at least from Suyog perspective, we are targeting another 3,000, 3,500 Vodafone sites in FY '27, which we are very 100% sure will come through now since Vodafone has already arranged the funds of INR 45,000 crores, which includes INR 25,000 crores from bank debt, INR 5,000 crore infusion from promoter and INR 10,000 crores from NBFCs. Even if you have seen the budget last -- on 1st of Feb, India has allocated INR 28,000 crores for BSNL only for FY '27. Post budget, there was a statement from Jyotiraditya Scindia, the Minister of Telecom that this CapEx would be used for rolling out 23,000 new 4G sites for BSNL, which we are discussing from past 3 quarters. Obviously, there is a delay from BSNL, but now it's very clear. Since they have got INR 28,000 crores funds and there is a statement from Minister sooner or later, that 23,000 sites will get rolled in FY '27 anyhow by BSNL because that's their target, which has been openly declared by Minister. And out of 23,000 sites, we are targeting 5,000 to 6,000 sites for BSNL, which we are very sure will come in FY '27 now post all the declarations. And the total budget allocated for BSNL was around INR 65,000 crores, where there is a 40% jump in the government allocation to BSNL, which has now gone to INR 73,000 crores, which clearly gives an indication that government is very serious about BSNL. Yes, there can be a delay in rollout of BSNL. But there is a major, major seriousness in government, and they want to bring BSNL as one of the best PSUs in India. That's why so much of [indiscernible] has been allocated to BSNL in last 1, 1.5 years' time. In terms of opportunity for Suyog, yes, we are all set. I will request all the investors, they have a little bit patience. Yes, there are delay in our plans, but we all set to take a major, major leap with the announcement of Vodafone and BSNL and Airtel going very strong on upgrade. We would be doing what targets we have been declaring from past 3 quarters, I'm sure we'll achieve it in current quarter plus FY '27 put together, we'll achieve our target. There is a delay because of my entire rollout or my entire plan is dependent on the operator's rollout, when they start the rollout. But with the clear announcement coming in public forum, that's very clear that FY '27 will be a very big and a changing or game changer year for Suyog Telematics Limited, where we would be part of top 3 telecom tower company of India. And same feedback we are getting from operators, both BSNL -- BSNL and Vodafone, who are rolling out these sites that Suyog is one of the most preferred partner for both the organization. So way forward is very clear the target which we are saying that we want to reach 15,000 tenancies. So we will be adding another 10,000 tenancies more, which we can clearly see coming up in current quarter FY '27. In terms of financials, we have hit the revenue of INR 555 million, EBITDA is INR 395 million. So again, a quarter, where we have sustained our margin of -- very strong margin in terms of PAT and EBITDA. So we have been consistently saying that these margins are sustainable, and we have been sustaining this margin quarter-on-quarter every year. Every quarter, we have been sustaining these margins. So again, this is one of the very critical sites because I think I was not able to communicate to you the revenue, which we are realizing from BSNL sites and from the Airtel upgrades. So all of you are aware that in FY '24, our per tower revenue on average was INR 32,000 and it went to INR 34,000 and INR 35,000 in Q1 of FY '25. Then there was a dip in our revenue, which went to 29,000 sites in Q3 last year. The main reason for that was the 1,800 sites which we did for BSNL and we were not able to do billing because we are not able to integrate these sites. So -- and if you see last 3, 4 quarters, we have been starting billing. So there was always a column, a number in my slide, where I was saying there is 1,800 sites, which were unbilled now which has come down to 558 in current quarter. The reason of that -- because of that, we are able to increase our per site tower, and we are again coming back on track, where we have reached INR 31,533 per tower per month. Again, so it's on an upward trajectory, where we are increasing our tower revenue per tower, which is one of the most positive sign. If there is a revenue per tower is high, it will again show the output on EBITDA and PAT. So because of BSNL billing, which has started for almost 1,000-plus sites and because of Airtel upgrades, our revenue per tower has again gone from INR 29,000 to INR 31,000. I'm very confident it will reach level of INR 32,000, INR 33,000, which I've been declaring from past quarter in coming 1 or 2 quarters itself since we would be completing our billing for BSNL in the next 1 or 2 quarters. Airtel upgrades are going on -- even if you see our competitor has declared the same thing that their revenue will increase because of new tenancies from Vodafone, where I'm saying my revenue will increase because of new tenancy from Vodafone and BSNL put together, while along with Airtel upgrades, which are going on very strongly. So one of the positive of last quarter is we have crossed INR 31,500 mark for revenue per tower, and which is one of the very healthy signs and which shows the strong financials of our company, where if our revenue per tower is INR 30,000 is one of the most healthiest revenue per tower in terms of any tower industry in India. I think you all have seen the financials, so I don't need to repeat that number. Revenues are growing. Revenues are stable as of now from past 3, 4 quarters. We have sustained the EBITDA and PAT margins. And balance sheet is as strong as ever. And only one thing I again want to [ deny ] that we will be doing another 2,500, 3,000 sites without any major fund issues because we have aligned all our finances. As informed last quarter, we have got enough bank debt approvals, sanctions [ laterally] available with us. There's an inflow of funds from promoter because the warrants has been converted now. And we have a very healthy cash flow since we have not done any major rollout in last 3 quarters. So I'm very confident we will not have any major fund issue if whenever we want to roll out 2,500, 3,000 sites that we have enough funds to roll out 3,000 sites, post which we can see how do we manage our funds. But our targets will not get affected because of lack of funds. We have aligned everything. I think in terms of presentation, that's it from my side. And now we can open for Q&A. Vinay, we can open for Q&A now.

Thank you, everyone. [Operator Instructions] We'll take the first question from the line of Varun.

Firstly, I wanted to ask you have done around 98 tenancies in Q1, then you added 52 towers in Q2. But the revenues for the last 3 quarters have been flattish. So what is the reason for that? You have already been doing CapEx also. Last quarter, you had mentioned. So we haven't seen much jump in the revenues. So --

I would like to -- see now I was just shown one of the slide, where our revenue per tower has increased from INR 29,000 to INR 31,000. Now again, you have to understand one thing that revenue per site will always dip when we do rollout for BSNL sites. The main reason is site rental portion, which is passed through first. So our revenue comprises of IP fees plus site rental. IP fees actual revenue and site rental is pass-through revenue. So whenever we build sites for any private operator, our revenue -- our site rental, which we pay to site owners is INR 15,000, INR 20,000, INR 30,000. But whenever we build tower for BSNL, our site rental is highest is INR 7,000 in Mumbai and Delhi, and it could be around INR 3,000 to INR 5,000 in rest of India. So our revenue per site will always take a hit when we do BSNL rollout. But it will not impact our PAT and EBITDA because our margins are same for all the private operator and government operator. So you'll not see same [ revenue ] of INR 35,000 if we do a lot of sites for BSNL Our revenue may dip to INR 31,000, INR 32,000 per tower. But yes, our profit will improve because site rental portion will reduce in our revenue portion. And that's the reason you are not seeing the same revenue hike even when I'm doing billing. And even if you see there is -- there are another 550 sites, where billing -- 558 sites to be precise, where billing is still pending for BSNL. While that 558 towers are added in number of towers, but billing is not being done because BSNL has not been able to integrate that site because of -- either because of microwave issue or because of lack of equipment.

And last quarter, you mentioned addition of towers for Vodafone also. So that should show in Q4 or from next year?

So Vodafone, the 43 tenancies for this quarter was for Vodafone because we have not done any new tower for BSNL. We are just doing billing for BSNL. Last 2 quarters we are doing Vodafone sites. Q4 will also, I believe, would be a strong quarter, but not very strong as per your expectation. A major number will come Q1 onwards, where Vodafone has already informed us that their material is expected by mid-March. They are doing a massive rollout. So Q1 onwards, FY '27, Q1 onwards, you will see a major jump every quarter in terms of number of towers or tenancies added in our network.

And your previous guidance for this year's tenancy was 9,000. So now what will be the guidance for this and next year?

As of now, I think it should be close to 70 -- 7,500 to 8,000. We are trying to maximize. See if Vodafone gets material, we'll try to maximize 1 month, which is left in our hand. Right now, if you see effectively, there are only 2 months in our hand. We'll try to maximize the number of tenancies, but it will again depend on the material availability with Vodafone. So as of now, I feel it should be close to 7,500 site tenancies for this year and then major jump Q1 onwards in next year.

So 12,000 you maintain for next year?

Yes. Higher than 12,000 for next year because now we have absolute clarity from BSNL and Vodafone both.

And this year, your revenue guidance was around INR 240 crores. So we maintain that.

No, we will not maintain INR 240 crores for this year since the rollout is not done by both the major operator. So revenue will take a hit a little bit, which will recover next year.

We'll take the next question from the line of [indiscernible].

Could you please -- I'm fairly new to this. Could you please explain to me how with 10,000 to 12,000 towers a year, I mean, what type of revenue can you generate? And could you just relay out --

[indiscernible] I will not be directly since it's -- probably I will not be directly saying the revenue, which will come, but I can give you some hints, where you can calculate yourself. On an average revenue per site would be close to INR 32,000. So if we have, say, 10,000 towers or 8,000 towers, you can multiply it by INR 32,000 that would be our revenue. Once we complete the entire 10,000 towers. And in terms of EBITDA, it will still sustain the 68%, 70% of EBITDA margin with close to 30%, 32% of PAT margin.

So I just wanted to understand what are the risks to this? I mean --

So the best part of this industry, there is no risk. Yes, we'll never have an opportunity we get missed. There can be opportunity, which is delayed. But there will never be opportunity, which will be missed because rollout is going to happen, it can get delayed by a few quarters, but it will come. So -- and sites which have been allocated to Suyog will remain with Suyog. And if you see in terms of number of competitors, we have hardly 2 or 3 competitors in pan-India basis. I can name them. Indus Tower is one of our competitors, which is also doing good in industry. Second one is Altius, which is Brookfield organization, which are not that aggressive as Indus and Suyog. And there is no other major operator across India, who is doing rollout pan India. And in terms of Altius and Indus, they are too big for us. So we don't even compete with them. We have our own monopolistic -- so-called monopolistic market, where we play along with our strength. Indus has their own strength. So -- and there is enough rollout across India, which can easily accommodate 5, 6, 7 tower company. While actually you see major rollout is done only by 3 tower companies.

So you've expanded in Delhi also through an acquisition, right? So this tower target includes the Delhi expansion or --

Yes, it's a consolidated numbers. We have started declaring consolidated numbers, which is including the numbers of Lotus.

Correct. What I'm saying this target of --

Yes, yes, the target, what I'm saying includes the -- it's a pan-India target. Either like for BSNL we'll do everything in name of Suyog only. And Vodafone, as of now, we are doing in name of Suyog. We may also do it in name of Lotus. It's a consolidated target.

And just if you could just -- one last. So you were saying -- I just wanted to reconfirm FY '27, what were you saying was your tower target?

So tower, we are planning to add another around 10,000 tenancies in FY '27 maximum. [indiscernible] double our tenancy in next year, more than double. Any -- anyone else?

[Operator Instructions] We'll take the next question from [ Deepak Panday ].

Sir, on the 10,000 sites implementation next year, how would the quarterly layout look like?

See as of now, I can give visibility of Vodafone, which seems around 1,000 towers per quarter. BSNL I am not committing right now because still we have not got confirmation from which quarter they want to start the rollout. I believe it should be Q1 only. But till the time we get confirmation, I will not commit on BSNL. But as of now, I think we should target 1,000 towers per quarter effective from Q1 for only Vodafone. And once BSNL have a clarity, see, they want to do it in FY '27, but it depends on the material availability from Tejas. So once I get clarity, I can add BSNL numbers to it, right. Major rollout should happen again in Q3 every year. It happens in Q3, it will happen this year also. So you can say almost 40% in H1 and 60% in H2.

And what is the material that is not being provided to BSNL?

See, they have just placed an order to Tejas. That's what the information we have got. So basically, if you see we are a passive tower company, right? So we do pool and everything. While operators will need to come along with their BTS, micro [indiscernible] and all active equipment. So Tejas is the active equipment supplier for BSNL and they have been working very aggressively with Tejas for the immediate availability of material, but still confirmation is awaited from BSNL.

Got it. And how does the year after that looks like, sir, for FY '28, is there a layout in your mind?

That is something in my mind, but -- so it would be better than FY '27, if what I think is possible because right now, only 2 operators are rolling out. There are very big news from Airtel and Jio that they will also soon start the new rollout, but no official confirmation yet. So if they both start, then [ FY '26 ] would be better than FY '27 also.

Okay. And is it fair to assume that BSNL and Vodafone largest rollout will be in FY '27 only?

Yes, yes. 100%. They will have a highest rollout in FY '27.

Okay. And post that, it should go down for the next year?

Not really because they are far behind compared to Airtel and Jio. So they will have to continue with this massive rollout because their number of towers are less than 50% when you compare with Airtel and Jio towers. So they will have to continue with this massive rollout for next 2 or 3 years. If they want to sustain -- obviously, they will sustain if they have to grab a good enough market share, they will have to continue with this massive rollout for another 2 or 3 financial years.

Got it. And at what stage do we need funds now?

What?

Going ahead, you are saying 2,000, 3,000 sites can be deployed without any fundraise or fund requirement. Post that, you will need funds, right?

Right.

And how do you plan to get there?

See now -- as of now, we have not finalized anything. Once we roll out 3,000 sites, there are multiple factors, which will impact our fundraising plan. One is we'll have a much better cash flow because 3,000 sites will start giving me revenue immediately. So there will be better cash flow, then first, obviously, our priority would be to increase the debt. If we're able to secure more debt at a better interest rate, we'll go for that. And then if there is any shortage, we may go for fundraising either by preferential or even by QIP or whatever suits the company. So as of now, nothing has been finalized. So when the right time come, we will decide and we'll declare you accordingly.

Sir, last question would be on the receivable part. If you can quantify as on 31st December, what is the receivable?

[ Himanshu ], can you share the exact numbers of receivable, but it has reduced quite a lot compared to previous quarters.

INR 52 crores.

INR 52 crores. And out of that, Vodafone would be how much?

Vodafone would be around 30%, 40%.

But Vodafone payment has been streamlined. Vodafone is paying me within 90 days. So there are no concerns as of now with reference from payments from any of the operators. We are getting payments on time. There will be a few delay in BSNL, but we are getting it.

We'll take the next question from the line of [indiscernible].

I just have one question. I just wanted to confirm, you mentioned 10,000 tenancies over 7,000 towers. Is this right?

Yes, 10,000 tenancy over 7,200 tenancies right now. So the entire calculation happens as per tenancy. That's why I'm mentioning tenancies.

Right. And this entire thing will happen by next financial year.

Yes. As of now, the projects, which we have got from BSNL and Vodafone, the BSNL is planning somewhere around 23,000 sites, out of which we are targeting 6,000, 5,000, 6,000 tenancies. And Vodafone is planning 13,000 to 15,000 sites -- tenancies in next financial year, out of which we are targeting another 3,500 tenancies. So put together, it should be around 10,000 tenancies for next FY '27.

And sir, you mentioned that we haven't done any major rollout in the last 3 quarters, and we are trying to align this. But at the same point, this is also a problem for us, right?

It's not -- see, you can't commit as a problem. You can say, yes, there is a delay in growth. The growth will come, 100% come. That's what I said even with one of the other investors that in this industry, the best beauty of industry is you can have an opportunity, which gets delayed. It cannot get canceled. So opportunity, which we are thinking of rolling out this 5,000, 7,000, 10,000 sites in FY '26 has got delayed to FY '27. And only reason is Vodafone is not able to arrange funds on time, which they have just declared that they have now INR 45,000 crores for next financial year, which has been declared last week. And even if you see the budget, Finance Minister has allocated INR 28,000 crores for BSNL for FY '27 alone. So now since funds are in place for major -- the operator, who are rolling out site, there's a delay in opportunity, which has been delayed by, you can say, 3 quarters.

We'll take the next question from the line of [ Tarun Kumar ].

Sir, I have a question. In '24, we gave guidance of doubling the number of towers, but we are still at the same place. How confident we are achieving this in next year?

Tarun, I think you have to be a little bit louder. I missed what you said.

Yes. Can you hear me?

Yes.

So I think 1.5 years back, you gave a guidance of doubling the number of towers, but we are still at same place. And every quarter, we see there is a delay with BSNL and Vodafone. How confident we are of achieving this next year?

So again, so if you are tracking the news of telecom industry, Vodafone has just declared 1 week back that they are going to invest INR 45,000 crores in span of 3 years. So if you even divide it equally, it's around INR 15,000 crores in FY '27. When you say INR 15,000 crores, they are going to invest -- they are going to do more than 15,000 sites, close to 15,000 sites in FY '27, which number we also got from Vodafone in last week. So now since Vodafone funds are already arranged, they will not keep funds as it right. They want to capture a market share, which they have been losing from past few quarters, which has reduced in terms of churn of customer. And to again gain the customer, they have to deploy sites. There's no other way. Network is their product. So we are very sure Vodafone is going to do 15,000 sites. And even if you have seen the budget, again, same thing, INR 28,000 crores has been allocated to BSNL for FY '27 alone. And if you have tracked Jyotiraditya Scindia, he has openly declared immediately after budget that this INR 28,000 crores would be used for rolling out 23,000 new 4G sites. So now -- since now both the operators who are doing the rollout have funds in their hand, it's just a matter of time that they start the rollout. And once they start the rollout, obviously, the business will have to come to Suyog and IP company like Indus, Brookfield and Suyog. There are no other major player in the industry. So if you ask me personally, I'm very, very confident. But obviously, we are again dependent on Vodafone and BSNL, which now we have more than enough clarity from past 1 week.

So in last 1 year, stock price has decreased from INR 2,000 to around INR 500 now. So I think promoter is doing preferential, but are you looking to increase from open market?

It's not -- see, about share price, we can't comment as a company. We are very clear we want to perform. We want to show numbers. We want to show delivery what we have committed, post which I'm very sure market will respond positively. If we are able to do another 2,000, 3,000 sites in span of 6 months, market will react positively. And we really don't manipulate the market. Market will take its own course. I'm sure if I'm able to deliver what I'm committing, price will go up. But we don't need to do anything as a company to improve our market price. Market will respond positively on themselves.

And sir, how much will be PAT after suppose 2 and 3 years from now once all this rollout is done?

So see, we are in terms of like of annuity business. We -- it's an annuity business. Once we roll out site, we'll get the same revenue, we'll get the same PAT and EBITDA percent. So our sustainable PAT is around close to 30%, 32% is a sustainable PAT after rollout of 10,000 tenancies also.

And sir, how depreciation will work? I think it will also increase and interest cost --

It will increase depreciation initially because all my existing towers almost they are like we have completed the depreciation period. So new tower is a higher depreciation.

So 30% is PAT guidance?

Yes, 30% would be PAT, sustainable PAT or year-on-year.

We'll take the next question from [indiscernible].

My question is on last call, you told that there is some data center project which you are going on about INR 35 crores of worth and that was the --hello, am I audible?

Yes, you are inaudible.

Yes. And you told that some part of that will come in Q3 and the majorly part of that revenue will come in Q4. But in Q3, I'm not seeing any kind of revenue here. So is it possible that the whole INR 35 crores will come in Q4?

So again, you are correct. There is no portion which has come in Q3 reason being like my tower have got delayed. Same way the data centers are also dependent on the operators like BSNL, Vodafone for their business. I'm not -- yes, Q4 we will see a substantial not entire, but we can see substantial revenue, which will come from a fiber business mainly related to data center.

And that the project --

How -- as of now market looks.

And that the project is INR 35 crores, worth right, if I'm not wrong?

Close to INR 35 crores, yes.

And is there any deadline that we have to -- like we need to complete it by Q4 or it can be delayed to Q1 [ FY '25 ] ?

As of now, the customers, which we are speaking, which are non-telecom operator, they have got information from operator that they want to have entire backhaul ready by end of Q4 so that they can do aggressive rollout in next entire year. See, backhaul is one of the most critical thing for the rollout of new towers. And as of now, I think it should get completed by March. See, it's only about laying fiber, their infra is ready. They have already identified the places for data center, where we need to lay fiber and connect them. So for us, it's a span of 1, 1.5 months' time once we start the work. So it should get completed by Q4 or mid of Q1.

Okay. And till now, like January end or till now the 6th February, you have not seen anything like that. Like it's still pending as of now, right?

No, planning has been completed, route has been finalized. Only thing we need to start laying once we get the go ahead from the customers, we will immediately start the laying. Entire planning has been completed, material has been procured.

And my second question is on the site ready like for integration. In Q2, it was 700 approx. and in Q3 end, it is 558 to be precise. So around 150 sites reduced is the count, but still in Q3 the total count of tower has only increased by 43, so like, there is something like massive thing going on --

Basically we are site ready what -- and when I can say site ready for integration, they were the sites, which were already considered in tower. Only difference is that billing was not started for that site. So as and when that number gets reduced, that indicates that I have done -- there was always a concern among the investors that we have 1,800 sites for BSNL, which were part of my tower count, but we are not able to see billing of that sites. So as and when that numbers are reducing, that means I have started billing for that reduced number of sites for BSNL. So it wasn't billing [indiscernible] for BSNL towers.

Okay. So you are just -- if I understood right, the 558 site ready is already counted in the -- our towers number, right?

But billing is pending.

But billing is pending.

Yes. You're right.

We'll take the next question from the line of [indiscernible].

Wanted to understand in terms of --

Can you be a little louder,, you're not audible.

Am I audible now?

Yes.

Yes. So just wanted to understand, sir, you gave 2 numbers in terms of closing tenancies, one was 12,000 tenancies by FY '27 and another you give 17,000. So what exactly is our target for new tenancy additions in FY '27? Is it 5,000 tenancies or 10,000 tenancies.

No, no. So we are saying, I have 7,000 plus tenancies right now. We are planning to add another 10,000 tenants in FY '27. So closure FY '27 should be close to 17,000 tenancies.

And out of this, we are expecting 40% to come up in H1. So 4,000 tenancies will come up in H1 is what our target is.

Right. So we are planning around 4,000 tenancies in H1 and 6,000 tenancies in H2 based on operator feedback right now. It may change. It may get reversed also if operator pushes for higher tenancies in H1. The entire plan is dependent on BSN and Vodafone. As of now it's [ 40/60 ].

And sir, in Q2, you mentioned about getting a BSNL order for around 6,000 sites or something like that or 3,000 sites. So is there a further delay in getting that order --

No [indiscernible] again repeat for everyone's clarity, BSNL is ruling out 23,000 sites, which I have been declaring from past 3 quarters. They have done RFP. They have informed that Suyog is the most preferred partner. They have done mapping of all these sites. But they have not released the service order only because I think they were waiting for fund allocation from the ministry, which has happened in last budget, which was declared on 1st Feb. So now they have got the INR 28,000 crores fund allocation for 23,000 sites in FY '27, which is clearly available in public domain a statement made by the Minister of Telecommunication and Finance Minister both. So now once they get the funds, first PO will go to Tejas for getting the material ready because even if I make my tower ready, they don't have material, it does not make sense. They have not readied the site. So right now, they are in the planning, where they are releasing the PO to Tejas for 23,000 site material. And once that PO is approved gone, immediately, they will release the service orders to all the IP companies, not only Suyog, orders will go to Indus, Brookfield, Suyog everyone. So we are expecting entire this process to get completed by end of March and rollout should start from Q1. That's my expectation. But knowing government PSU, you can't be sure 100% sure over it. But yes, as of now, expectation is BSNL should start rollout from Q1.

And sir, last question on the funding part. So you mentioned that we have funding ready for another 2,500, 3,000 sites.

Right.

And if we are planning 4,000 sites in H1 itself, then we would require funds in H1 of FY '27, correct?

Right. So we will need funds in FY '27. Yes, we'll need to do some fundraise in FY '27. But whether we do it at end of Q1 or end of H1, we have to decide based on the -- we still have to take call every quarter based on the rollout, which we are doing. So as of now, no immediate plans for fundraise. But yes, once we have a successful Q1, then we can take a call on fundraise.

We'll take the next question from the line of [ Siddharth Bhattacharya ].

A couple of questions. While we see that there is a strong rollout opportunity --

You're not audible. Siddharth, you have to be louder.

Hello. Am I audible now?

Yes.

Yes. So what I'm saying is while we see that there is a strong rollout by the telecom guys, just wanted to understand what kind of wallet share or market share do we take out of this rollout --

Can you again repeat? [ Kamesh, ] can you help me with the question?

Yes, sure. So basically, he's asking that there is a strong statements from the telecom industry. So what kind of market share are we expecting from the sector?

Okay. Siddharth, right, Siddharth, we are [ actually ] planning 23,000 sites. Now I am the most preferred partner for BSNL. So I can do any number of sites. But as a company, we are taking a very judicious call that we don't want to go overboard on BSNL, where my BSNL receivables or my BSNL revenue share is higher than private operator because we always know that there will be delay in payment. So right now, we have kept capping on BSNL rollout, which we are saying we don't want to more than 5,000, 6,00 sites for BSNL. Even though I can get business of 10,000, 12,000, 15,000 sites since I am the preferred partner. But we want to keep our balance sheet very balanced, where we are not overdependent on one operator for our revenues. So we are -- out of 23,000 sites, we are capping BSNL 5,000, 6,000 sites as of now. And Vodafone has planned 15,000 sites, they will all go -- they would be sharing an anchor board. So they may also go for some portion of sharing with Indus and Brookfield. So right now, we are saying we'll do 3,500, 4,000 sites for Vodafone, so which lose to 35%, 40%, which is a decent enough numbers in a competitive market with 3 or 4 IP tower company.

So also, sir, just wanted to understand one more aspect. So basically, in your presentation, we are talking about CCTV sites as well, right? So could you help me understand what is the traction on that and --

See, basically, CCTV is only a method to get the permissions for tower where we're not getting from past many years as a telecom industry. So CCTV is like a normal small cell site. It's like a small cell tower. What I do, wherever I don't get permissions for tower from private buildings or private landowners, we approach a local corporation or local [ GT ]. We just put 12-meter pool on road. We install CCTV. We give it to government free of cost and at top of the pool, we install a small cell tower, which is [ obliged ] to operator. Now currently, there is no much movement in CCTV because major rollout is happening on macro site. Macro tower cannot be installed on a single 12-meter pool. We have heard that Vodafone will start HPSC mainly in Mumbai, few in Kolkata and Delhi. So whenever there's an HPSC rollout, CCTV sites will increase. Otherwise, for macro, it's a pure normal traditional towers.

And for traditional towers, is there any retrofitting that is -- that can be possible for -- to convert them to CCTV sites as well?

There's no need because once I get a permission for a normal private building owner or land owner, why do I invest in CCTV, where I'm not getting any revenue.

We'll take the next question from the line of [ Darshil Pandya ].

Sir, it's been some good time that we are tracking our company for some time now. Sir, I just want to understand a few parts from your side with regards to this tenancies, towers and things that are in place. So sir, back when we were in time for fundraise, that was the time that we were talking about adding this many tenancies. What guidance you are giving for next year was something that we should have been done by this year. just to understand. So my question is with regards to that, that if the rollout has been stopped, so why our management has been guiding in that zone that we will be doing this many towers? Because it was delayed, I understand from your part, what management has already told us in the beginning of the call. But just to understand from our perspective that we have invested since a long time now and the story is being pushed for next financial year. I want your views on this and how confident and how -- what are our view on the rollout that are happening for -- at least for next year?

So Darshil, I think first thing, there is no rollout, which has been stopped. Rollout has got delayed. Now see, whatever we commit numbers are based on the numbers, which we receive from the operator because my revenue depends on my customer, right?

Correct.

So whenever we get a figures like BSNL, if you see the BSNL website, in last 3 quarters back, they have done RFP for 23,000 sites. So when any company do RFP, which is like a small tender, you can say, people expect that rollout will happen immediately once the RFP gets closed. So we were expecting same numbers and same figure what we got from BSNL. And again, when you see the Vodafone story, they have been speaking about INR 25,000 crores funds to be raised from past 3 quarters. And every quarter-on-quarter, we have been informed that be ready, we will be soon starting rollout. So to be transparent with investors, we don't under commit, we don't overcommit. We clearly communicate what we receive from operator. So that's the reason we have been declaring from past 3 quarters because the figure, which we get from operator, we transparently share with the investor. Now the second part of your question, how confident I am in FY '27? Now you only -- I think I'll have to ask a few questions to you so that everyone understand why I'm confident. Have you heard about INR 45,000 crore investment by Vodafone in the next 3 years?

Yes. Absolutely. Yes. Definitely.

And are you sure Vodafone is going to invest the [ NHD ] funds?

Sir, we are not invested in Vodafone. We are invested in [indiscernible].

Right. But see when a company like Vodafone stature declared INR 45,000 crores, we have to trust them right that they have funds, then only they will declare. So same way like we are trusting -- I'm trusting Vodafone that yes, they are going to invest INR 15,000 crores in FY '27. And once they roll out site, they will have to come to you. There's no other option. Same happens with BSNL. You have seen budget; you have seen INR 28,000 crores allocation. You have seen Minister declaring 23,000 sites, right?

Correct.

So when a stature of Jyotiraditya Scindia declared that in FY '27, we'll do 23,000 new 4G sites. We also go by same statement. The only difference between you and me, you only believe in these statements. I go one step further. I go and meet them personally. We speak with them and we get more clarity. So as of now, status is very clear. They are going to invest money in FY '27. And by [ Suyog ] they are going to roll out these sites. And once they decided they are going to roll out this site, I'm very confident I'm going to achieve my tenancies. Because even right now, when I declare my numbers, I'm not going to -- I don't declare that we'll do 70%, 80% of the industry. I'm declaring only 30%, 35% share, which is decent enough or maybe you can see here, I'm under committing because of some reasons, I'm under committing otherwise, I can do much more than that.

No, no, I understood your point. And sir, my second question would be with regards to -- since we are talking about having enough liquidity. So just to understand our debt position will be what if we go with these 3,000 tenancies in the next 6 months? And what do we do after that because we will, for sure, need funds for further CapEx as what our customers have been targeting of.

Correct. Sharma, ji.

[Foreign Language]

Sharma, you're not audible.

[Foreign Language].

[Foreign Language].

[Foreign Language].

And one last question, Tushar, sir, before I come up again.

Yes.

[Foreign Language] 17,000 tenancies is something that we are expecting. [Foreign Language] just to understand from --

We will add another 8,000 towers with -- for 10,000 tenancies.

8,000 --

So tower [indiscernible] should be somewhere around 13,500, 14,000 towers with 17,000 tenancies.

So probably if I understand your thing like for 3,000 we have done for yes, for 3,000 and for additional 3,000, we'll have to --

[ To reach the 5,000 ], we have to do fundraise, yes.

[Foreign Language]

[Foreign Language]. We hope that Suyog comes big in next few quarters.

We'll take the next question from the line of [ Ubesh Sharma ].

[Foreign Language] .

[Foreign Language] So Airtel is my biggest customer, followed by Vodafone, Jio and BSNL. [Foreign Language] you would be one of the major shareholder of the market, where we will do more rollout for both of them.

[Foreign Language].

[Foreign Language] .

Yes, yes.

[Foreign Language] .

[Foreign Language] .

[Foreign Language] [ I will recheck] and I will answer and we reply as well.

Hold on. Hold on. Aarti [Foreign Language].

[indiscernible].

Aarti, your voice is not clear. Your voice is not clear. You need to come near the mic.

Hello.

[email protected] [Foreign Language] but [ you not withstand ] any my set queries. [Foreign Language]

Yogesh, right, your name is Yogesh.

Yes, yes.

S first take down my mobile number don't worry and [Foreign Language]. I will give you reply anytime. 989205 --

Tushar, Tushar, we are on a public domain. We will share your number to him sepatetely.

[Foreign Language].

I think that was the last question for the day. Sir, would you like to give any closing comment before we end this conference call.

I think, sir, will give the closing comment, Kamlesh.

Yes.

Sure, sir.

Yes. Good morning to, everyone. I have listened everyone, everybody's question, thank you Tushar, you did nicely answered what are the -- our plan. I want to explain all the investors that whatever talk we have about VIL and BSNL, we are simply saying the 3,000 site will [ roll out ], INR 300 crore budget is there, out of that INR 80 crore profit is coming from this year, INR 150 crore bank sanctions are available with us and INR 20 crores to INR 50 crores just like our bill receivables are there. Accordingly that the -- our vendors also be in INR 30 crores to INR 50 crores credit maturities also available with the bank [Foreign Language]. So regarding the fund arrangement and everything, we are in place. Winston Churchill has very rightly said that we plan successfully to implement it correct. So whatever time has been gone, it's due to only planning and allocation of the site from operator. Suddenly these 2 two operators are in a bad shape , BSNL as well as VIL. They are in bad shape the sense of what I'm talking is that AGR dues of VIL is not cleared, now the government is clear from their AGR dues, BSNL has been totally depend upon the Indian budget and their numbers are not coming. So officers are a little bit confused how the rollout will turn. But Suyog have already the remark and planned for 33,000 sites. Regarding this, whatever money available with company each and every part, we want to invest in our domain not in the new domain. What I'm telling is that domain means, the Mumbai, Delhi, the company is based on Mumbai. So we're targeting Mumbai MTNL, Delhi MTNL. We acquire the site, acquire the company there and consolidated balance sheet [indiscernible]. And these numbers are coming from not from our site, these we are planned with the operators. So the new site because you have seen the digital India, what we and what the requirement of telecom industry is coming is huge not only in the point of every sector, you can see the overburden is going on, every hotel industry, flight industry, telecom industry, but Suyog is very cautiously want to maintain quarter-by-quarter last 10 years, we have not shown in growth is not right. We have shown the growth perfectly and this time, we have got the orders of more than [ 6,000 over '25to '26 ] March, we are closing [ 220 ] that we our financial CFO has already explained. Tushar has explained about the site implementation. What we are trying to as an MD point of you and the management point to you that our debt ratio we are maintaining properly. We -- our EBITDA is maintaining, our profit is maintaining, if we will do anything wrong in the [indiscernible] we do not want to go in the new terrain and install the site. We are expecting the sites, which are 3,000 or 4,000, they have the plan of all India. But Suyog is focusing on six terrain, where the our operation and maintenance is also comfortable to give the operator best result. Why Suyog is preferrable partner Tushar ultimately telling that due to our 99.95 SLAs, we are maintaining. These are the very important issue concerned to all the telecom operators because taking site, implement it and not maintaining is a very difficult thing, while the other, our competitors, small are not coming up because of the management of finance and everything will come out. And Suyog is the only person, who can rollout the site all over India with the six terrain and another terrain is also Suyog ready. Our new people, [indiscernible] completed, acquisition team are in place, technical people we have taken and financial view, our CFO, post CFO, my daughter has also joined, Son is also development manager, all the people are in a place and were in a position, delay is not part of Suyog side, delay is the part of rollout side from VIL and BSNL. Once their planning has completed, then our planning will start and we are ahead with them to plan our sites, with the -- our 7,000 tenancies adding 3,000 is not difficult and we are very confident on these all sites. In previous record last 10 year, our people are versatile. Our company is in a well position. Our staff is well trained and operation, maintenance part is also there. That's the good part I want to inform you that all the VIL payments are in time and we thanks to them, only some part of the government, where there are some paper works are there, that's why their delay is going on. But that is also, we are confident to handle it because Suyog is capable to handle government as well as private side. That is my single remark. And new one question is came from that the data center and we are definitely looking, see, the question of the mind investor come last 2, 3 meetings, you feel that the Sterlite (sic) [ Starlink ] is coming, what is going to happen about the tower, this type of questions have come. That can also we will inform you that what the Sterlite (sic) [ Starlink ] any connection anyone see in the market, no, but still we have to answer, which are imaginary. Okay. But the same time we should take the cautiously decisions on deploying the some trade sense, some [indiscernible] should also come in our mind also management that what happen if the Sterlite (sic) [ Starlink ] will come, is anything towers are collapsing, no. There is nothing will going to happen. Sometime before, the health hazard issue are coming. The market has come newly problems, we are solving for that, taking care of that and systematically analyzes the thing and then we are deploying the towers in the -- our tenant and getting management is trying to get more profit and more clarity on these. And these, if we see the government policies plan that the labor problem is there that labor they have told previously 5 years gratuity, now they are telling that 3 year gratuity. These type of government norms we have to follow, BSE, NSE norms also, SEBI guideline also, we are taking. Taking all the chaos and seeing all the optimization of these thing, we are very much confident and nothing to worry about it, we are maintaining our ratios, plus we -- our growth will be definitely we will achieve. Taking these remarks, I thank you each and every investor [indiscernible] morning 10 clock with the taken this early meeting. Next time, we will take in a comfortable meeting and we will show our growth. Thank you very much for joining the meeting.

Thank you, sir. Thank you to the management team for giving us the time. Thank you to all the participants for joining us on the call. This brings us to the end of today's conference call. You may all disconnect now. Thank you.

Thank you, everyone.

Thank you.