XA Update Report | PT Dayamitra Telekomunikasi Tbk. (MTEL) – 1Q26: Strong Operational Performance Sustains Stable Growth Trajectory
By Leonardo Lijuwardi (Senior Analyst) & Gwenda Deanita (Associate)
18-May-2026
MTEL closed 1Q26 with revenue reaching IDR 2.29T (+1.4% YoY, -13.6% QoQ), meeting 23.5% of our FY26 forecast. MTEL’s 1Q26 EBITDA recorded at IDR 1.89T (-8.2% QoQ, +0.9% YoY), with a solid EBITDA margin of 82.7% (1Q25: 83%). 1Q26 net profit booked at IDR 545B (-5.38% QoQ, +3.6% YoY) which meeting 25.2% of our FY26 forecast, driven by lower finance cost which was down by 19.4% YoY and keeping a solid margin of 23.8% (1Q25: 23.3%). MTEL’s performance was supported by the business expansion in the fiber optic segment which was significantly grew by 8.5% YoY and growing contribution to 6.6% of total revenue. We keep our MTEL’s FY26F earnings estimates at IDR 2.17T, led by the stable tower leasing business, discipline cost management and growing fiber demand. We maintained our “Buy” call with Target Price of IDR 670 / share.
🔹 Tower Segment Remains Flat & Maintaining Fiber as Growth Machine
• Stable tower leasing revenue. The tower leasing segment recorded IDR 1.85T in 1Q26 (1Q25: IDR 1.85T), relatively stable performance. The tower related business grew to IDR 166B (+12.9% YoY) while the tower reseller remains flat to IDR 128B (+0.8% YoY). The growing in tower related business reflecting a selective portfolio towards a higher margin, optimizing MTEL’s business revenue. As of 1Q26, total towers reached 40,327 unit.
• Fiber optic growth remains accelerating. The fiber optic segment recorded a +8.5% YoY and +6.3% QoQ growth to IDR 152B in 1Q26 (1Q25: IDR 140B & 4Q25: IDR 143B). MTEL has recorded 1,080 km fiber network addition, bringing total 58,279 km fiber network in 1Q26 and targeted to reach ~x km in FY26F. In terms of composition, 54% located in outside Java. While the fiber segment accounts for 6.6%, it continues to act as a primary growth engine for MTEL, offsetting the relatively flat performance of tower leasing business.
• Telkomsel remains as the biggest tenant operator. Based on the tenant operators, revenue from Telkomsel increased by +5.0% YoY to IDR 1.23T in 1Q26, making its contribution increased to 54% from 53%. Meanwhile, revenue from other operators: EXCL grew by +16.8% YoY post-merger to IDR 324B in 1Q26 (1Q25: IDR 278B | 4Q25: IDR 512B, Quarterly Basis: -36.7% QoQ), and ISAT recorded a decline to IDR 475B in 1Q26 (-3.5% YoY | 4Q25: IDR 321B, Quarterly Basis: +47.9% QoQ).
🔹 Operational Performance: Stable Margin amid Flat Revenue & Leverage Profile Remains Healthy
• Discipline cost management keeping stable margins. Total expense increased by 4.4% YoY to IDR 1.3T with operational expense increased to IDR 398B (+3.6% YoY), while keeping EBITDA stable at IDR 1.89T (+0.9% YoY). MTEL also recorded lower finance cost in 1Q26 at IDR 243 billion (-11% QoQ & -19.4% YoY), in line with a lower interest rate compared to last year. Overall, costs remains manageable, reflected in the stable profitability of 23.8% NPM and 82.7% EBITDA margin.
• Debt has no exposure to exchange rate. As of 1Q26, MTEL’s total debt recorded at IDR 18.7T (-2.1% YoY) with full repayment of bonds and sukuk amounting to IDR 250B. Thankfully, all debt are in IDR currency, providing a stability amid IDR pressure. Leverage ratio remains healthy with DER at 55.7% and Debt-to-EBITDA at 2.1x.
🔹 MTEL Portfolio: Strong Growth Outside Java Keep Drives MTEL’s Tenancy Ratio
• Strengthening Tenancy Ratio: MTEL’s operational asset data reflects an improvement with number of co-location currently reaches 23,066 units in 1Q26 (+11.7% YoY, +0.7% QoQ) and the number of tenancies increased by +0.4% QoQ and +5.1% YoY to 63,333 tenants in 1Q26, driving the Tenancy Ratio for 1Q26 period to 1.57 x, climbing from 1.52 x in 1Q25.
• Strong Tenant Growth Still Boost in Outside Java: For the 1Q26 period, 59% of tower portfolio was from outside Java, accounting for 23,768 tower. This composition reflects company’s strategic expansion to cover more areas outside Java, such as Sumatra, Kalimantan, Bali, Maluku and Sulawesi, proven by total tenants that increased by 7% YoY. This growth precedes Java area which only grew by 3% YoY, highlighting bigger potential from outside Java.
🔹 Maintaining Our FY26 Forecast with No Change
• Maintained FY26 estimates. For FY26, we expect MTEL revenue in FY26 at IDR 9.78T for FY26, with +2.6% YoY growth and net profit at IDR 2.17T for FY26 (+2.2% YoY growth), due to the relatively stagnant growth in the tower industry. Despite the expectation of stagnant growth in tower industry, we expect MTEL keep maintaining their strong balance sheet and operational expenses well. Our expectation for NPM in FY26F is 22.2%, remains flat compared to the FY25 (22.2%).
🔹 “Buy” Recommendation with Target Price at IDR 670 / Share (+ 31.4% Upside Potential)
• NHKSI Research maintains “Buy“ recommendation with a target price of IDR 670, reflecting 9.2x Forward EV/EBITDA (Average Last 3 years). As one of the defensive sectors, although the tower rental segment has limited growth following post-merger consolidation of mobile operators, MTEL still has opportunities to achieve above-average industry growth through its fiber segment. In addition, a healthy balance sheet and lower leverage compared to its peers still allow for opportunities to undertake inorganic expansion. The risks for MTEL include weaker growth in tenancy and fiber segment growth that does not meet expectations.
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