XA Update Report | PT Tower Bersama Infrastructure Tbk. (TBIG) – 1Q26: Maintaining Stability – Fiber Continues to Gain Traction Amid Flat Tower Growth
By Leonardo Lijuwardi (Senior Analyst) & Gwenda Deanita (Research associate)
8-May-2026
TBIG recorded 1Q26 revenue of IDR 1.72T (-0.79% YoY, -1.7% QoQ), meeting 27% from our forecast. EBITDA recorded at IDR 1.47T, implying a solid EBITDA margin of ~85.3%. On the profitability side, GPM was stable at 72% and NPM at 22.7%. Operationally, TBIG maintained a stable tenancy ratio of 1.70x with 41.8k tenants across 24.7k sites, supported by 808 gross tenancy additions during the quarter despite some non-renewals post XLSmart merger. TBIG’s fiber optic segment is gradually emerging as a supplementary growth driver amid subdued tower demand and ongoing industry consolidation. This is reflected in its increasing contribution to overall revenue, as seen historically, with the fiber segment’s contribution strengthening over the past two years (1Q24: 8.0%, 1Q25: 8.7%, and 1Q26: 9.5%).
🔹 Tower Revenue Remains Relatively Flat, Fiber Continues to Gain Traction
• TBIG’s revenue in the 1Q26 period slightly down to IDR 1.72T (-0.79% YoY, -1.7% QoQ), driven by tower leasing segment’s revenue of IDR 1.55T (1Q25: IDR 1.58T & 4Q25: IDR 1.75T). As the slowdown in tower segment, fiber optic revenue continuously posted an increase of +8.6% YoY to IDR 164B in 1Q26 (1Q25: IDR 151B | Quarterly basis: -3.5% QoQ, 4Q25: 170B), bringing its contribution hiking up to 9.53% (1Q25: 8.7%). We expect the fiber optic to continue to grow, offsetting the relatively flat tower lease demand, with revenue estimate FY26 reaching IDR 752B, accounting for 10.8% of total revenue.
• In terms of tenant operator, Telkomsel remains as the main contributor. While the post-consolidation effect of XLSMART has made a slight decline in revenue, which has recorded 1Q26 revenue of IDR 491B. The last, Indosat recorded revenue of IDR 431B (-1.5% YoY), collectively accounting for 88% of total tower lease revenue.
🔹 Margins Ease on Higher Opex While Finance Costs Declining
• Operating performance softened slightly in 1Q26, with operating profit declining to IDR 1.08B (-3.0% YoY), as revenue came in relatively flat while costs trended higher. Consequently, operating margin compressed to 62.8% (vs. 64.2% in 1Q25), reflecting pressure from rising operating expenses. Opex increased to IDR 156.5bn (+7.2% YoY), outpacing revenue growth. The uptick in opex was primarily driven by higher personnel costs, depreciation, office expenses, and employee benefits, alongside increases in sponsorship and professional fees.
• Finance costs declined in 1Q26 to IDR 427B (1Q25: IDR 500B & 4Q25: IDR 464B), inline with the lower interest rate. While a decrease in the benchmark interest rate is expected to provide room and opportunities for TBIG to experience financial efficiencies, the current hold on interest rate and future rate decision could be one of the risk to watch for FY26 performance.
• TBIG maintained a relatively elevated leverage profile as of March-26, with net debt of IDR 27.9T (4.8x net debt/EBITDA), while net senior leverage remained manageable at 0.8x, supported by gross debt of IDR 28.7T and cash of IDR 778B. Despite this, the company continues to exhibit strong funding flexibility, evidenced by its Feb-26 bond and sukuk issuance, including IDR 700B 1-year notes priced at a record-low 4.85%. Management highlighted that its diversified funding base and solid relationships with domestic lenders provide ample liquidity to sustain growth and ongoing expansion.
🔹 TBIG Portfolio: Resilient Tenancy Growth & Solid Orderbook
• TBIG reported 41,764 tenants across 24,666 sites as of 1Q26, with a tenancy ratio of 1.70x supported by 41,656 tower tenants. The portfolio includes 24,558 towers and 108 DAS networks, reflecting continued infrastructure scale. TBIG also added 808 gross tenancies (599 new sites and 209 collocations), indicating a solid pickup in order book momentum. Despite net additions being affected by non-renewals from XLSmart’s merger, underlying demand for tower capacity remains resilient.
🔹 FY26 View: Maintaining Flattish Growth and Earnings
• TBIG is expected to deliver largely stable performance in FY26, with revenue projected to edge up by 0.8% to IDR 6.97T and net profit to increase slightly by 0.4% to IDR 1.43T. This muted growth outlook reflects the broader tower industry trend, which remains resilient but structurally modest. Although the fiber segment continues to post solid growth, we view its contribution as not yet significant enough to become a consistent core earnings driver.
🔹 “Overweight” Recommendation with Target Price at IDR 1,800 / Share (Upside +7.5%)
• NHKSI Research recommends an “Overweight” Rating for TBIG but with a lower target price at IDR 1,800 / Share, reflecting a 12.3x Forward EV/EBITDA (-1 STD Average of the Last 3 years). Despite TBIG’s fiber optic segment starting to experience growth, there is still no strong catalyst to significantly unlock TBIG, and TBIG has a relatively premium valuation compared to MTEL and TOWR (TBIG Current EV/EBITDA Annualized FY25: 11.0x | MTEL: 8.0x & TOWR 7.0x). Although TBIG still has opportunities to achieve above-industry-average growth with its fiber segment, the weakening tenancy ratio over the past 2 years poses a challenge as well as a post-merger post-mobile-operator-consolidation trend and declining tower demand. The risks for TBIG include weakened tenancy growth and fiber segment growth not meeting expectations.
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