Hi everyone. Good afternoon everyone. I will be starting with the presentation followed with Q&A. So, this presentation is about Q1 FY27, which we've uploaded just a few hours back on our website and on our NSE platform. Right now, we will show the critical slides over here so that we can get more time for Q&A. So, like, again, our share Airtel -- revenue share of Airtel has grown by 1%, so now my Airtel revenue is around 48.1%, followed by Vi which has grown around 2%, it's at 27% now, followed by Jio, 22.6%, and BSNL, 2.3%. As you all know, we operate pan-India across all the states and union territory. We have 6,100 plus sites and 7,400 plus tenancies. So, the key highlight for this quarter is we started actually receiving orders in mid of June, somewhere around 15, 16 June from Vodafone Idea. We had declared on the exchange also that we got around 600-plus orders from Vodafone, out of which we converted 95 towers which is equal to 150 tenancies in month of June itself. Because this is a quarter ended statement, we have updated numbers only up to 30 June. So, in span of say 13 to 15 days-time, we were able to convert 95 sites and 150 tenancies, which is one of the biggest achievements and we are one of the fastest IP companies to deliver such numbers to Vodafone Idea. Basis on our performance, we are getting now loading from Vodafone Idea on monthly basis. We currently have, after converting 150 tenancies, we have another 700 tenancies from Vodafone on which we are working and we are trying to convert maximum in Q2. But obviously, there will be some rain impact in this quarter. But we are trying our best to convert

maximum sites from 700, which we are having right now in our hand. So, if you see as of Q1 exit, we have 6,103 towers with 7,468 tenancies and most of the tenancies which came in this quarter was of macro site. So macro site numbers have grown much higher and we did few kilometres of fibre network in the quarter. So, I had also earlier mentioned that we are working on a backup for batteries where we would be the first IP company to launch zinc battery. So, just to give a brief background. If you are aware, lithium prices of batteries have almost doubled in last 2.5 months. The battery which was purchasing at the rate of INR33,500 for Grade H went up to -- current price is INR48,000. So, which is almost 50% increase in last couple of months. And all lithium batteries are imported from China. All cells are imported from China. So, China has removed subsidies, rupee is falling against dollar. So, we are having major impact on lithium battery which is increasing our cost. So, we have fast-tracked our zinc battery. Zinc battery is ready. It's under production right now and we should get first batch for around 10, 15 sites in by mid of September. And pricing of zinc battery is similar to old pricing of lithium battery. And since it's 100% made in India, we will not have any dependency of import or subsidies from other country. So, it will ensure that CapEx remains within our budget because zinc battery prices are same as VRLA or you can say same as old lithium prices. It's one of the much bigger savings which we will have in coming years when we do our CapEx. We will be the first IP1 company to launch zinc battery on a site in month of September. As of now no one has even started trials, while we are in phase of launching zinc battery on sites. So, this will be one of the biggest CapEx saving item for us in current quarter and it's one of the biggest take for current quarter. In terms of way forward, you guys must have seen the results of Vodafone and BSNL. We are focused on Vodafone and BSNL because they are the ones who are giving us new business for next coming few years. Right now, Airtel is not doing any major rollout, Jio is not doing any major rollout. Vodafone has already declared close to 45,000 site rollout plan in next 18-24 months. They are targeting to do 3,000, 3,500 site every month which they have already started. And that's why we are having such a huge rollout from Vodafone Idea. In terms of funding from Vodafone Idea, you are aware that they have already secured INR6,400 crore funding and they are in a very advanced stage from SBI and consortium to arrange another funding

of INR25,000 crores, INR30,000 crores which will happen in phase- wise manner. So, Vodafone is moving very aggressively. We are getting bulk business from Vodafone and we are very sure we should be able to do another -- we should be able to do 3,000 additional tenancies from Vodafone Idea in current financial year. BSNL has done a big announcement before few days. They are doing a INR77,000 crore CapEx with 2 lakh sites -- which will convert to 2 lakh sites in next 5 years. But as of now, I don't want to really go deep into BSNL because we all know that BSNL will do declaration but their rollout will start very slow then there will be billing issues and everything. So, we have kept our stand very clear on BSNL. Once they confirm my billing started, we will start rollout for BSNL. So, obviously you can expect big numbers from BSNL but as of now, unless we get some confirmation from BSNL, we are not giving any projects as of BSNL right now. But yes, there is a huge workload for IP1 companies, close to 2.5 lakh plus 50,000 from other co-operators, close to 3 lakh towers are planned in next 5 years. So, there will be no dearth of work for any IP1 company in India. It's, whoever performs better, whoever has proper funding can do huge number of rollouts and can double their sites every year. So now we are coming to financials. Revenue for Q1 consolidated revenue Q1 FY27 is INR710 million. We have maintained EBITDA of 59.3%. So, when we say EBITDA now this EBITDA is a revised EBITDA with EV. As you all are aware from 1st April, we have changed the accounting policies and we have added electricity in our top line. So, earlier EBITDA which was seen was around 70% has come down to 59.3% because of addition of electricity in the top line. I will also show you comparison of last quarter and last year in next slide. In terms of PBT we have INR195 million, net profit is again INR145 million which we have maintained. Probably there is not much growth since our orders started coming from mid-June. So, all the growth you will see from coming quarters and next year when we do lot of roll-out from Q2 onwards. We have an EPS of INR12.37. So, revenue per tower we have maintained even after a stagnant quarter we were able to maintain our revenue per tower where again we are above INR31,000 which is one of the high revenue. Now this revenue per tower is excluding EV. We are not adding electricity in revenue per tower otherwise it will be misleading. So, revenue per tower has been constant at INR31,000, INR31,500 for us from last four quarters.

This is a comparison. So, what we have done is we have added electricity charges in FY26 Q4 and Q1 FY26. So, there is an apple- to-apple comparison. So, you can see revenue has grown by 6.1% in current quarter. If you see y-o-y, we have reached INR70.9 crores of revenue compared to INR68.5 crores in previous quarter and INR66.8 in the same quarter last financial year. Our total expenditure has increased because of this, there was an April quarter we have salary increase, there was a CapEx and everything. In terms of EBITDA, we have INR420 million in EBITDA which was INR418 million last quarter and INR411 million in last financial year. EBIT again remains strong at 74%. PBT is INR195 million and our net profit margin is constant at 20% with the electricity cost in picture. So, if you see PAT has been between 20% to 25% constantly in last 4 years. So, I have already shared you change of accounting policy effective from 1st April. Reimbursement has been added to top-line - electricity reimbursement has been added to top line. Because that was a requirement from GST department. And this is a comparison sheet for you guys for apple-to-apple comparison. I think balance sheet is the same FY25-FY26 but since it was quarter one, there is no change in balance sheet. It is same what we have shown you last quarter. That's it from my side. Thank you everyone and we can now open for Q&A.

Thank you sir. [Operator Instructions]. So, we will take the first question from the line of Mr. Guneet Singh. Mr. Guneet, you can unmute and go ahead please.

Hello, am I audible?

Yes, Guneet you are audible.

So, firstly I want to understand more about this zinc battery project. Are we doing our own CapEx? If so, how much? Or is it contract manufacturing from someone else? And what kind of revenue projections we have from this firm from Q2, Q3, Q4 onwards? What kind of EBITDA margins?

So, Guneet first about zinc battery. We are not manufacturing ourselves. We have done tie-up with one of the manufacturers - which is GBB Batteries who has plant in Kerala and the promoter of zinc battery is based out of US. He was one of the ex-battery head for Apple. So, the product has come out very good with him. And we are going to -- like we are buying lithium battery from someone; we are going to buy zinc battery from GBB. So, it's not that we are

manufacturing ourselves. We are going to just buy from manufacturer. But yes, we would be the first one in telecom industry to use zinc battery in next month on sites. In terms of revenue projections, see I am sharing with you that we are planning to do 3,000 sites for Vodafone Idea in current financial year. As you know our average is around INR30,000, INR31,000 per tower per month, excluding EV. So, that would be -- and if you take EV, EV would come to average INR20,000, INR25,000 per site per month. You can calculate top line also but it's not right for me to comment on financial numbers because it's a listed entity and we cannot guide your financial number. But as you can derive yourself, we are planning 3,000 sites for Vodafone Idea with an average revenue of INR31,000 without EV, around INR50,000 with EV.

Okay, and what are the benefits of this zinc battery? Will our EBITDA margins improve? Currently, what price are we buying the battery at?

So, there are 2-3 major advantages of zinc battery. One is in terms of pricing. Lithium prices have gone very high. So, for 100H Lithium pricing is right now costing INR48,000 and which is expected to rise in future also. While zinc battery will cost me around INR33,000 for 100H. We normally use 3 batteries on every site, 300H. Then it will vary up to 600H, 900H also. In terms of efficiency, it will give the same benefit of lithium battery where it will be small in size and it has a fast charging and more backup. A major benefit compared to lithium is its fire resistant. Lithium battery still has a chance of getting caught on fire. Zinc battery will not have any fire. It's a fire-resistant battery and that's the benefits of zinc battery.

So, this is for INR33,000 and currently how much are we procuring batteries for?

Right now, the latest cost of lithium battery is INR48,000 for 100H.

So, basically this will reduce our CapEx. Is that correct?

Right. And it will reduce the CapEx and also reduce some operations cost. It will also reduce my operation cost but yes, major benefit would be on CapEx.

Got it. So, for this current financial year, we only have about 3,000 extra tenancies from Vodafone or extra towers?

So, see it's not only Vodafone, 3,000 is tenancy. Now, this is what we are targeting right now because Vodafone has as of now declared

a rollout of 12,000 up to September and they may add another 18,000. They are planning around close to 30,000 sites in current financial year, out of which we are targeting 10% which is 3,000 based on our financial capability and the visibility once we see current financial year. There is much more, many more business, BSNL may come up with. We hope that even Reliance will open soon after IPO. So, opportunities are many, huge. But as of now, on conservative basis, we are saying we will do 3,000 sites from Vodafone Idea.

Got it. So, in the current quarter, we just added about you said 150 sites.

150, yes, yes. Right.

And for -- can you give a breakdown for Q2, Q3, Q4?

So, see right now we are planning, you can take another 3,000 -- you consider 2,000 incremental sites. Q2 would be lower. Q3, Q4 are always high for me. So, exact numbers I can't give. But yes, totally almost 35%, 40% happens in H1 and 60% overall I do in H2.

Got it. Sir, out of 3,000, if we say 35% happens in H1 that is about 1,000 to 1,200 tenancies. So, in Q1.

We are targeting – only thing is that our rollout started from mid- June. So, let's see how much we can cover up in Q2 because it's also rainy season. So, we will try our best to achieve the best numbers in Q2. So, whatever spillover is there, we can easily get covered in Q3 and Q4.

Got it. And this 3,000, I mean, these are tenancies or…?

Tenancies.

Okay. So, out of this 3,000 how many would be on our existing towers and how many new towers do we plan to?

It's very difficult to plan it because we keep getting loading on monthly basis. It's not that we get loading for entire year. So based on Vodafone planning, but normally it should be 80:20 ratio, where 80% would be anchor and 20% would be shared.

Okay. So, 80% of 3,000 would be new towers that we will erect.

Got it. And this 3,000 you are saying it's a conservative figure for this year, right?

Yes.

And we don't already have the letter of intent or orders for this 3,000. That's what we are expecting.

We have the master service agreements that we sign it with all operators, right? But their planning happens as per their budget. So, Vodafone has done right now - planned rollout only for INR6,000 crore which they have received from SBI. So, as and when they receive funds, they will start raising the nominal. They will not raise the nominal because even they need to arrange their funds back-to- back. So right now, they would raise nominal only for around 7,000 8,000 sites or close to 10,000 sites out of which we are targeting 3,000. So, as and when SBI approves their next set of funds or next phase of rollout will start, we will get more sites.

Got it. Got it. All right. So, basically, I mean the jump in revenue should come only from FY28?

Yes. Because that's the time when we will get the full year benefit of the revenue of VI sites. So, you will see margin, you will see jump even in Q3 and Q4. But full year benefit we will get it in FY28.

Got it. So, basically 30,000 plus 25,000, 55,000 into around 750.

50,000 into the number of sites.

Yeah. That should be the incremental we should expect Q3 onwards, right? Got it. All right, sir. In terms of EBITDA margins, we will be maintaining the same or have we seen any cost escalations or…?

We will have the same EBITDA margin with EV, which I have shown right now which is around 59%. We will maintain the same EBITDA margin for coming quarters also.

All right. Thank you very much.

Guneet, I also want to say something. You are saying EBTIDA margin will be same, yes, no doubt. For the longer period EBITDA margin will be the same, but today if you take a look specifically, when you do a 10-year long term rental agreement then as per IndAS, for the first five years your notional loss is somewhat bigger and regular loss -- in the next five years your notional profit increases. So, due to that your EBITDA margin is slightly muted. The impact has come in the same balance sheet, due to the IndAS

notional loss. So, you have to consider this point always. Due to the working of IndAS your EBITDA gets impacted.

Okay, sir. Got it. Thank you very much. I wish you all the best.

Thank you.

Thank you, Guneet. We'll take the next question from the line of Mahek Talati. Mahek, you can unmute and go ahead, please.

Hi, sir. Thank you for the opportunity. Sir, these 3,000 towers which we are targeting from VI, what is your confidence level that we will be getting these orders and we will be executing the same case here as well?

Mahek, you are talking about the 3,000 sites from VI, right?

Yes.

We are very confident we'll achieve it because right now flow is very good. We have been getting – on a daily-basis numbers are getting added to our ET and based on our performance, we had a meeting with Jagbir Singh, who is their National CTO. We met planning team and even Vodafone Central team is very happy with our performance. So, as of now, we don't see it -- we don't have any reason to say we'll not achieve. Yes, we are very confident. Team down the line is absolutely ready. They have been executing site daily. Even in rainy season, we have been doing 100 sites frequency, 150 tenancies in mid-June, which was rainy for parts of India. We are very confident. We have execution capacity. We have enough funds. So, 3,000 should not be a challenge for us.

Okay. And what is the current order book from VI like? Is it 700 1,100 tenancies or 1,100...?

700 plus, see 700 is existing, it could be 700 and more. We have already done 150. Another 700 is my two days ET. My ET keeps increasing every day because they keep loading me sites day on day out. So as of date, when I am sitting here, it's 700 plus other than 150, which I have done earlier.

Okay. And sir, this BSNL order, we have been targeting from March like 7, 8 months. Now all of a sudden, we are saying that we don't want to comment more on the growth aspect of BSNL because of the delay. Can you clarify more on this? What's the reason? Are we expecting any order this year or if it gets delayed by next 1-2 years? Anything on that side as well.

So, Mahek, we are very optimistic about BSNL as a company. But when I speak on a public platform where investors are there, what happens many times when we -- see we also commit based on the numbers which we receive from operator. But when I quote some numbers to you guys and then we are not able to achieve because of operator issue, it comes back to us that why you are declaring numbers and you are not achieving. BSNL numbers are very high. We already have some orders in our hand which we are not executing because of their issues with the Tejas equipment. So obviously, we are optimistic about BSNL. We are expecting some numbers in current year. So, BSNL is a clear path of 2 lakhs tower in next 5 years which they have declared on public platform 2 days back. So, obviously, when a CMD of BSNL declares something, it will be after a lot of planning. But let it come on ground. Let them give me a confirmed date by when they want to start the rollout, when will my billing start? Then we will share numbers with you. It's not that we don't want BSNL. We are very happy to serve BSNL. We say as aggressive as we are for Vi, we are for BSNL also. Once we get the confirmation from BSNL, thein Tejas equipment issues are resolved and they are ready to launch the new rollout phase.

Okay. And so, basically this FY27 we will be ending with roughly 10,500 tenants. Is that the correct estimate, assumption?

Right. So, we already have 7,000 plus. We will add another 3,000. So, it will be 10,000 plus tenancy.

And what would be the funding requirement for this and how are we funding this?

As of now, we have enough funds from internal accruals. We are not seeing any major fundraising right now. But depends if I get more orders than expected, then we may decide on fundraising. As of now, we have not taken any call on it. So, whenever right time comes, we will come back to you if there is any plan on fundraising or anything.

Okay. And we are expecting 20% PAT margin to sustain this year, right?

Yes.

So, when you see year-on-year, there was a VI reversal in the last quarter. Last financial year, same quarter, we were having a VI reversal of the vendor's provision. That's why it went to 25%. Otherwise, it will always be around 20%, 21% with EV.

Okay. Understood. Thank you.

Thank you, Mahek. We will take the next question from the line of Mr. Divyansh Thakur. Mr. Divyansh, you can unmute and go ahead, please.

Hello, sir. Sir, congratulations on the great set of numbers. Also, I wanted to ask that you are talking about 3,000 tenancies. How much have we done this quarter and how much are we going to do and how much is the confirmed tenancies that we have?

So, you see, first thing, out of 3,000 tenancies, we have already done 150 in Q1, which I have already shown in my numbers in our presentation slides. We have done 150 tenancies. We are already working on 700 plus tenancies other than 150. So, while sitting today on a call, I have around close to 850 already in my hand and there is entire 9 months which are remaining ahead. So, 3000 is not a challenging number. We should be able to achieve it. We have execution capacity. We have finances, funds in place and the way Vodafone is going aggressively, the only challenge is right now Vodafone has got INR6,400-something crores from SBI and warrants. Now, they are awaiting another set of finances or funds to be released from SBI and consortium. So, if they are able to secure funding, then obviously, 3,000 is 100% doable and which is right now very possible because Aditya Birla himself is on the board right now and he has declared numbers. So, we don't see any challenge in achieving 3,000 going forward.

Sir, so, we are pretty confident that we will be able to do 3000 this year.

Yes.

Okay, sir. And also, just want a clarification on that what is this 31,000 without EV and 50,000 with EV? Sorry if I…

No, up to last financial year, our top line was only rent and IP fees. We don't used to -- we never used to have electricity reimbursement in top line. But due to change in GST guidance, from Q1 we said we have added electricity reimbursement in our top line. So, there is a change in accounting policies. So, when I ‘m showing you the number of revenue per tower, it's without electricity. While my

books, the number which you saw in P&L and balance sheet which is my top line, it's with electricity from Q1 onwards.

Okay, sir. Okay. And we were like there have been news around that you know Vodafone, Idea, BSNL both are going now aggressive as they have secured the funding. So, what is the -- what is the growth outlook that we have and also where are we on the fund raise? I think last quarter you talked about that we might be needing money.

Right. So, in terms of funding, I have already said Vodafone has planned to raise INR45,000 crore funding which will roughly convert to 45,000 sites coming 18 months to 24 months. They have already said they are targeting 3,000, 3,500 sites every month. Out of INR45,000 crore, they have secured INR 6,400 crore and they are in the final stages with SBI consortium for another set of funds to be released from there. So, Vodafone is very aggressive. They have been giving me sites. They are giving all other IP sites and Vodafone is 100% very aggressive. Vodafone they will ensure their numbers. That's what we feel as of now. In terms of BSNL, we have just seen -- see they don't need to secure funds. Their funds come from government. Government has already allocated enough budget for BSNL in last year budget itself. They have declared plan of INR77,000 crore CapEx for coming 5 years which is equal to 2 lakh sites in coming 5 years. Only challenge for BSNL, that I am not as confident as Vodafone is because we are yet to see resolution of Tejas equipment which they are facing issues with Tejas equipment due to which their entire rollout has been delayed from past 1, 1.5 years. Once they are able to control or once they are able to resolve Tejas equipment we are very sure even BSNL will do huge rollout. But let's wait and watch till it comes on ground and they start the actual rollout. That was your question right?

Sir, where are we on the fundraise part? You had mentioned last quarter that we will be behind.

Divyansh, I just mentioned to you as of now, we are working on 3,000 tenancy where right now for next quarter we have enough funds with us to rollout the number of sites which we are targeting but as and if I get more order and if we are able to crack some things, if we are able to get more orders from VI or BSNL we will decide. As of now, we have not decided whether not to go ahead with fundraise or when will we go ahead with fundraise. So whenever right time comes, we will surely come back to you guys for fundraise.

Sir, so basically our whole plan depends on how Vodafone Idea and BSNL executes their plan. If there is something that goes not for them, then we might be feeling the pressure too, right?

That's true for every company because all companies are dependent on their customer. Whether it's a FMCG product, if customer don't buy product, obviously company will only do products and not be able to sell it, right? So, Vodafone Idea, BSNL are our customers. Yes, we are dependent on our customers for our product.

Okay, sir. Thank you. Thank you so much for answering my question.

Thank you, Divyansh. We will take the next question from the line of Saket Kapoor. Saket, you can unmute and go ahead.

Namaskar, sir. As I think so, Tushar ji or I think Ajay ji was answering that it is the dependence factor on the customer only that will define how the company is going to progress. But if I would ask our Managing Director and get a very small understanding, sir, actually over the last 18 months or 2 years post this fundraising exercise which because of some reasons we could not execute, things have just turned down and things are not at all in terms of growth and reporting increase in growth and revenue as well as profitability. So, these two aspects of BSNL, the Tejas issue, the Vodafone funding, how are we aligning our business prospect for this current year and what should investors conservatively should also look ahead for this year in terms of profitability. Suppose these two issues do not play out positively for the company, then what should we be pencilling in going ahead? How will growth then shape up? What is the plan B? And some understanding because somebody was commenting on a very good quarter, so I could not make sense how I will be able to take this quarter as a good quarter. So, if you could just clear my doubts, I would be very helpful.

Mr. Kapoor, first of all I will speak in Hindi.

I will also speak in Hindi. Sorry for speaking in English.

I want to speak in Hindi because you have rightly asked a good question. For the last two years after BSNL, I am basically a BSNL contractor and all these things, what happened if you see in the market, all the people who had taken up BSNL, their bank balance and everything has gone in loss. We were very cautiously watching BSNL. Earlier, BSNL had a plan that we will do it in rural. Later, their plan was shifted and it came in Bombay-Delhi MTNL in which

we targeted near about 100 more sites in both areas and achieved it. As far as the question is concerned, the growth of 2G, 3G, 4G and 5G in that travel 3G has totally stopped and 4G has started, and 2G still has customers available. So, I want to say that the company's prospective is of not only Vodafone, BSNL and Jio came together the rollout of Airtel is also less and more, if you saw the pricing of Sunil Mittal in the last quarter, then it had increased. Yesterday, Vodafone had declared a dividend. So, when the operators want to take out their investment/cost they have a source where they can increase the pricing and recover their telecom investment. Second point, we are very clear for BSNL and Vodafone and we stopped BSNL for a while as Tushar was telling you that till the time BSNL can confirm on their CMD level or whatever meetings happen for their fund allocation and after that their rollout will start. So, they have made an announcement that in the next 5 years, they will be doing 1 lakh site. So, coming to the real point is that the order that we have in today's date is a complete order of VI. We are confident in the VI order because we are their preferred partner, we have an MSA and they are giving us a 10-year locking. So, as for the fundraising, till the time it is not a huge number or until maybe in the 2nd or 3rd quarter we don't want to go for fundraising because bank fund is also available because every month we are also repaying the bank fund. So our clear and clear vision and focus is that after 3,000 sites of VI once our 10,000 number is achieved and our target of touching 100 cr. profit quarter wise -- sorry year wise so if we go for INR100 crore per quarter then INR400 crore will be the top line and the bottom line we are thinking to grow from ~22% to 24% and the 15 VI available we can add 4,000 to 5,000 site in the next 3 quarters so we are quite confident about that that this number is achievable and the issue of fundraising if the bulk order comes from BSNL or anyone else suppose Vodafone only says, no we want to add 2 more states like MP where we don't have a presence. We have focused on 5 states Kolkata, Maharashtra, Mumbai, Delhi and UP. Even after these 5 states if they add Bihar and MP so if we focus on 5,000 then 3,000 will be achievable. This is our clear cut strategy.

Sir I wanted to ask you one point you said you are targeting INR100 crore revenue quarterly which is INR71 crore yes sir you are targeting the revenue and you want to annualize 400 crore, so 71 crore is the number we have also added reimbursement for electricity that percentage and if Ajay ji can tell, then what will be the comparison, and when do you expect this INR100 crore number from which quarter we can see it in our accounts.

We can see it from Q4.

We can see it from Q4 and sir you said something about dividends, which company declared dividends I missed your point sir.

We said in the AGM to give dividends in this company the dividend of Vodafone has also given a dividend of INR14, Vodafone company gave dividend.

Vodafone is a loss-making company they gave dividend.

They gave. Suddenly I got the news one of our investors called. Indus gave.

Indus gave. Okay. I will come back in the queue, but as an investor we have to face disappointment we have been invested for 2 years in the company.

There is no question of disappointment, the 18-month standstill if I make a agreement to show you the numbers the company's BSNL payment issues. So, in that issue you will face problems in the cash flow. To get a jump ahead you have to come back 2 steps.

Sir, just one point I will not take more time. BSNL as a relevant player how much is left on the current pricing Jio, Airtel, and now the revival of Vodafone on a pan-India basis how much is left of the relevancy of BSNL and MTNL as I am talking to the State of West Bengal, I have not heard that people have a connection with BSNL. So, your dependence is on BSNL to a higher degree…

Sir, you asked the question of my heart. Our wavelength is the same, as I am also saying why I don't see a customer of BSNL. So, the simple logic is that the government has not made a company for profit. BSNL has been running on the funding of the government. So, their officers don't have the mind to make it profitable. Last year the minister announced that we will do it in rural and later we will divert to urban. It came to MTNL Mumbai and Delhi. So, it is possible that their pricing will be cheap. I want to give you a simple example ST Mahamandal and Luxury. If you say Luxury, it is Vodafone Idea and Jio and the rural network bus is run by the local government. So when will there be a profit it is difficult to answer this question but I think they are running their show that's all.

Thank you, Saket. We will take the next question from the line of Surbhi Mishra, Surbhi you can unmute and go ahead please.

Yeah, hi. Am I audible?

Yeah, you are. Go ahead.

Sir, I wanted to ask you, your tenancy ratio is still around 1.2x. What will take this from moving forward, 1.5x to 2x over the next 3 to 4 years? And I also wanted to know if we can increase tenancy on existing asset base without proportional CapEx, how much incremental EBITDA can the existing tower portfolio generate?

On an overall portfolio basis, my tenancy is around 1.2. We are not targeting 2x as you said. We are targeting to reach 1.8 in coming 3 to 4 years, so it should be a very decent risk for industry. Now to reach 1.8, see whenever we do more of a macro site rollout, there are very high chances of coming to a 2 or 3 tenancy, while HPIC or small cell set will always have a tenancy 1, 1.1, 2. And now as a trend is going, operators are more keen on doing macro site rollout, so if you say out of 150 tenancy which I did, all were macro site. And that's why if you say I have done 95 towers, but I have done 150 tenancy, which is a very good ratio of 1.8, the Q1 rollout. So yes, we are very confident by end of FY28 or early FY29, we should be able to achieve the ratio of 1.8 in a sharing, because more or less I am doing more of a macro site rollout. And in terms of say, I can, rather than putting EBITDA or PAT number, I will just say what are my ROI. So, when I do a site with single tenancy, I get recovery in 3.5, 4 years. But when I come, we come to the 2 tenancies, it goes down to 24 months and 3 tenancies goes down to 18 months. So yes, there is a drastic improvement in PAT also when I do more of a sharing sites. So yes, there will be jump in PAT percentage, EBITDA percentage, when we do more of a sharing tenancy. And we should be able to achieve 1.8 in FY29 early quarters.

Also, I wanted to know, you have referred to a 15-year Vodafone MSA. Does that actually generate a minimum revenue or does it simply provide a framework under which Vodafone may place orders?

All the MSAs of all the operators are a framework and a fixed commercial. See, basically, MSA says this is a framework and these are the charges, what you can charge me for X type of site. Under MSA, they will keep loading my site on a daily basis across India. It's with all operators, whether it's BSNL, Airtel, Jio. No MSA has

a closed end, like I will give you only thousand, I don't give you thousands. It's a blanket MSA. You can do any number of sites what you are capable of.

And one more question. After the planned Vodafone expansion, what percentage of revenue will Vodafone contribute?

Right now, we are saying we want to take Vodafone to 30%, 32%. We are eyeing around 32% of revenue from Vodafone once we are able to do these 3,000 or more sites from Vodafone.

Okay, thank you so much.

Thank you. Thank you. We'll take the next question from the line of Rakesh Gupta. Rakesh, you can unmute and go ahead, please.

Am I audible?

Yeah, you are audible.

Yeah. So, the company has an increasing highlighted fibre and a fibre first strategy. So, what percentage of FY27 revenue will come from fibre and what EBITDA margin does fibre generate versus towers?

So, Rakesh, basically EBITDA margin since it's an IP1 model, we have a similar EBITDA margin. So not with the EBITDA margin, which was there -- without EBIT, which was around 70%, which can generate the same EBITDA margins for fibre. In terms of revenue, it will be very marginal. Right now, we are focused on more of macro sites and more and more sites are coming to rural villages where they go on a microwave rather than fibre. And Vodafone doesn't have a very strong fibre network on ground like Jio and Airtel. So, most of their sites are coming on microwave. So as of now, we don't see any major jump in fibre percentage, which will be close to 5% to 8% of my total revenue. So, it will remain same as it is. Yes, jump would come in coming years where we do more of an FTTH, where we do more of a fibre for all operators. But in current FY27, there will be no major jump in terms of percentage from fibre revenue.

So, is fibre an asset heavy recurring revenue business like towers?

Yes, I put my own fibre, I put --invest CapEx in fibre and we get recurring revenue from operator. My 100% of revenue is recurring revenue for IP1 model.

Thank you. We'll take the next question from the line of Varun Ghia. Varun, you can unmute and go ahead please.

Hi, sir. So, my question is regarding the Vodafone towers. In last quarter, you mentioned that we'll achieve 12,000 tenancies by the end of the year. And now you mentioned that it's around target is around 10,500. So, what has changed? Like Vodafone is also -- the process is in delays or why have you cut the additional 1,000, 1,500 tenancies in a quarter?

So again, Varun, I have said that 3000 number is on a conservative basis. If you see what I've said, it's on conservative basis, on the basis of 6,400 crore which Vodafone has secured from SBI out of INR45,000 crore which they eye. So as and when Vodafone comes with the clarity of funds, we'll keep adding numbers to our target. Right now, what we are committing is based on the 12,000 sites which Vodafone is going to roll out by September-October. Once Vodafone declares confirmed rollout of 30,000 sites, once they get additional funding from SBI, we'll increase our target.

When do you expect that to happen?

See, last, I think before few days, Mr. Birla -- sorry Mr. Abhijit Kishore has himself stated that they are on final stages and they are expecting additional confirmation from SBI in coming few months. So, whatever they say, what you hear, I ‘ll be hearing the same thing from them.

Okay. And all additional towers, we see the average rental to be around INR 31,000.

So, INR 31,000 is the rental for the MPC, yes. It will be same. Revenue per tower will be around INR 31,000.

And PAT margins, we expect around 20% to stay at these levels?

Yes. 20%.

Okay. Thank you.

Thank you. [Operator Instructions] We'll take the next question from the line of Anubhav Jain. Anubhav, you can unmute and go ahead, please.

Yeah, you are audible.

So, my question is that, what is the current status of the 189 BSNL site whose billing was pending as of the last fall? And have they started contributing to the revenue?

So, Anubhav, right. So, if you see when we started BSNL project 1, 1.5 years, it was close to 1,000 sites which were pending. Right now, it's 186. So, in this quarter, they have not added anything because they are busy resolving their Tejas issue. But yes, 186 site billing is still pending, which we are expecting now. The news which we got before few days is that more or less their Tejas issues are in control and should be resolved soon. So, we can see in Q2, we should be able to start revenue for 186 sites. Okay.

Looking beyond FY27, once the bulk order of Vodafone 45,000 site program is allocated across IPs, what is the realistic annual new tower addition that Suyog can sustain? And how are you positioning for next wave of 5G private networks and rural coverage?

Anubhav, can you repeat what you said?

Okay, sir. I will repeat it. Looking beyond FY27, once the bulk order of Vodafone 45,000 site program is allocated across IPs, what is the realistic annual new tower addition run-rate that Suyog can sustain? And how are you positioning for next wave?

If we go in FY28, we are eyeing another 5,000 sites from Vodafone. Out of 45,000 sites, we are saying we will do around 8,000 to 10,000 tenancies from Vodafone in two financial years. So, this year we are targeting 3000, next year we are targeting 5000 from Vodafone based on our visibility, finances and everything. And obviously, there is no point, saying some numbers after FY28 because telecom industry is very dynamic. It keeps changing their plans every now and then. Right now, we have visibility of 3,000 plus 5,000 sites from Vodafone.

Okay, sir. Thank you, sir.

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

Yeah. Thank you very much all for attending the investor conference. We are very confident about our work. And the rollout in the last 10 years, we have achieved 7,000 towers and another 3,000 towers we are in a well situation and well equipped with all

our staff members. So, we only assure the market that we will sustain the growth. What last two months, two years stagnant is there. We will grow fast from this year. Thank you very much.

Thank you, sir. So, this brings us to the end of this conference call. I thank the management for giving us their valuable time and also the participants who joined in. So, thank you very much. And this brings us to the end of this conference call.