XA Update Report | PT Dayamitra Telekomunikasi Tbk. (MTEL) – 2Q26 : Operational Performance Remains Stable – Lower Finance Costs Support Earnings Stability

 

 

By Leonardo Lijuwardi

04-August-2026

 

 

MTEL recorded 1H26 revenue of IDR 4.69T (+2.1% YoY), representing 48.0% of our FY26F estimate of IDR 9.78T, while 2Q26 revenue reached IDR 2.40T (+2.7% YoY; +4.5% QoQ). Top-line performance continued to show relatively stable growth, in line with the increasingly mature nature of the tower business, while continued fiber growth provided a positive contribution to the company’s topline. On the bottom line, 1H26 net profit reached approximately IDR 1.11T (+1.6% YoY), representing 51.3% of our FY26F estimate of IDR 2.17T. On a quarterly basis, 2Q26 revenue growth improved from 1Q26, although it remained within a moderate range. From a margin perspective, 2Q26 saw a slight contraction, mainly due to higher depreciation & amortization (D&A). Meanwhile, operating expenses remained relatively well controlled without any significant increase. On the other hand, lower finance costs in 2Q26 helped sustain profitability, allowing the impact of higher D&A to remain manageable.

 

 

 

🔹Revenue Breakdown: Tower Remains Stable, While Fiber Continues to Drive Growth

 

• Tower leasing revenue improved in 2Q26. The tower leasing segment recorded +1.8% YoY and +7.5% QoQ growth to IDR 1.99T in 2Q26 (2Q25: IDR 1.95T), while on a year-to-date basis, revenue grew +0.9% YoY to IDR 3.83T in 1H26 (1H25: IDR 3.80T), reflecting relatively stable performance supported by a strong recovery in 2Q26. Tower-related business grew to IDR 299B (+15.0% YoY), while tower reseller remained relatively flat at IDR 250B (-0.4% YoY) in 1H26.

 

 

• Fiber Optic Growth Continues to Accelerate. The fiber optic segment continued to deliver consistent growth, with revenue reaching IDR 157B in 2Q26 (+6.8% YoY; +3.3% QoQ), up from IDR 147B in 2Q25 and IDR 152B in 1Q26. On a 1H26 basis, fiber revenue grew +7.7% YoY to IDR 309B (1H25: IDR 287B). The continued positive QoQ growth indicates that fiber expansion is increasingly becoming a more recurring and gradual source of growth for MTEL. Although the segment still accounted for only 6.6% of total revenue in 1H26 and 6.5% in 2Q26, fiber is becoming increasingly strategic as an incremental growth driver, helping offset the relatively stagnant growth of the tower leasing business.

 

 

• Telkomsel Remains the Largest Operator Tenant. Telkomsel remained MTEL’s largest revenue contributor, accounting for 55.0% of total revenue in 1H26, broadly stable from 1H25. EXCL recorded the most significant increase in contribution, rising from 13.7% to 15.0% in 1H26, with revenue growing +11.2% YoY to IDR 703B, in line with post-merger stabilization. Meanwhile, ISAT’s contribution declined to 19.9% in 1H26 from 20.8% in 1H25, in line with the strengthening contribution from EXCL.

 

 

 

🔹Operational Performance: Margins Slightly Pressured by D&A, While Finance Costs Provide Support

 

• Margins Slightly Pressured, but Remain Manageable. MTEL’s margins came under pressure mainly due to higher D&A, with D&A expenses increasing +4.9% YoY to IDR 1.85T in 1H26 and +4.9% YoY to IDR 947B in 2Q26. This was reflected in the EBITDA margin declining to 82.9% in 1H26 (1H25: 84.0%) and 83.2% in 2Q26 (2Q25: 84.9%), while GPM declined to 49.9% and 50.4%, respectively. On the operating expense front, total opex increased +9.0% YoY to IDR 802B in 1H26, although on a QoQ basis it increased only +1.6% to IDR 404B in 2Q26, indicating that operating expenses remained relatively well controlled sequentially despite higher construction & project management expenses.

 

 

• Lower Finance Costs Help Sustain NPM. Lower finance costs became one of the key supports for profitability and margins, with finance costs declining 15.0% YoY to IDR 483B in 1H26 and 10.2% YoY to IDR 240B in 2Q26. On a QoQ basis, finance costs also remained relatively stable, declining 1.2%, providing a cushion against pressure at the operating profit level. As a result, NPM only slightly contracted to 23.7% in 1H26 (1H25: 23.8%), while 2Q26 NPM stood at 23.6%, indicating that the lower financing burden helped MTEL sustain its bottom line amid operating margin pressure.

 

 

 

🔹MTEL Portfolio: Tenancy Ratio Remains Stable – Outside-Java Portfolio Continues to Expand

 

• From a portfolio perspective, MTEL’s tenancy ratio remained stable at 1.57x in 2Q26, unchanged from 1Q26, but still up 2.8% YoY from 1.53x in 2Q25. The number of towers reached 40,563 units (+2.0% YoY; +0.6% QoQ), while tenants increased to 63,866 (+4.9% YoY; +0.8% QoQ) and co-location reached 23,303 units (+10.3% YoY; +1.3% QoQ). Geographically, the proportion of MTEL’s portfolio outside Java continued to increase, with approximately 59% of MTEL’s towers now located outside Java, reflecting an increasingly focused expansion strategy toward regions with greater connectivity growth potential. With a combination of stable tenancy and increasing exposure outside Java, MTEL continues to maintain a solid recurring revenue base while retaining room to capture growing connectivity demand across non-Java regions.

 

 

 

🔹Maintaining FY26 Forecasts Without Changes

 

• Maintaining MTEL’s FY26F Forecast. We maintain our FY26F estimates for MTEL unchanged, considering that 1H26 performance remains broadly in line with our expectations. We forecast FY26F revenue of IDR 9.78T (+2.6% YoY) and net profit of IDR 2.17T (+2.2% YoY), with relatively limited tower leasing growth offset by continued fiber growth and disciplined cost management. As of 1H26, MTEL has achieved 48.0% of our FY26F revenue estimate and 51.3% of our FY26F net profit estimate. Given this performance, we believe MTEL remains inline with our FY26F expectations and therefore see no need to revise our forecasts at this stage.

 

 

 

🔹 “Buy” Recommendation with Target Price at IDR 640 / Share (+ 41.6% Upside Potential)

 

• NHKSI Research maintains its “Buy” recommendation with a slightly lower Target Price of IDR 640/share (+41.6% Upside Potential), implying 9.0x Forward EV/EBITDA, in line with the 3-year historical average. MTEL’s current valuation has started to approach approximately -2 SD below its 3-year historical forward EV/EBITDA range, providing an increasingly attractive valuation cushion given the company’s recurring and defensive business characteristics. While the tower rental segment faces limited growth following mobile operator consolidation, MTEL still has the potential to deliver above-industry growth through its fiber segment. In addition, its healthy balance sheet and relatively lower leverage compared with peers provide further room for potential inorganic expansion. Key risks include weaker-than-expected tenancy growth and fiber segment growth falling short of expectations.

 

 

 

Download full report HERE.

 

 

 

 

NH Korindo Sekuritas Indonesia berizin dan diawasi Otoritas Jasa Keuangan (OJK). Untuk informasi lebih lanjut, anda dapat menghubuni CS kami via email CSO@nhsec.co.id