Indus Towers Faces Profit Dip Amid Client Doubt

Indus Towers, the nation's leading telecom infrastructure company, announced a significant decline in its June quarter earnings. The consolidated profit after tax stood at Rs 1,736.8 crore, marking a 10% decrease year-on-year. This financial hit primarily stems from provisions for doubtful receivables from a key client.

This decline follows a profit of Rs 1,925.9 crore during the same period last year. The company disclosed uncertainties regarding receivables from a major customer, which substantially contributes to its quarterly operational revenue. As of June 30, this customer represents a large part of the outstanding trade receivables and unbilled revenue.

Despite continuing to acknowledge revenue from operations linked to this client, Indus Towers has chosen not to recognize revenue equalization assets due to straight lining lease rentals given the customer's current financial state. The company declared an allowance for doubtful receivables amounting to Rs 2,099 million as of June 30, 2025.

(With inputs from agencies.)