XA Update Report | PT Tower Bersama Infrastructure Tbk. (TBIG) – 2Q26: Flat Topline Amid Tower Slowdown, Lower Finance Cost Supports Profit Growth
By Leonardo Lijuwardi
03-August-2026
TBIG delivered a relatively stable 1H26 performance, with revenue of IDR 3.46T (+0.3% YoY) and EBITDA of IDR 2.95T (-0.8% YoY), while EBITDA margin slightly contracted to 85.2% (vs. 86.1% in 1H25). On a quarterly basis, 2Q26 revenue reached IDR 1.74T (+1.4% YoY; +1.4% QoQ), while EBITDA stood at IDR 1.48T (-0.5% YoY; +1.2% QoQ), with an EBITDA margin of 85.1%. 1H26 net profit grew 1.6% YoY to IDR 836B, while 2Q26 net profit reached IDR 446B (+8.9% YoY; +14.3% QoQ), although the earnings growth was largely supported by non-operating factors, particularly a 4.7% YoY decline in finance costs, amid a still-stagnant tower business. Meanwhile, fiber optic revenue continued to grow by 6.0% YoY to IDR 325B in 1H26, although growth momentum started to moderate in 2Q26, with revenue of IDR 162B (+3.5% YoY; -1.3% QoQ).
🔹Tower Revenue Remains Flat, While Fiber Continues to Support Growth
• TBIG’s revenue remained relatively stagnant at IDR 3.46T in 1H26 (+0.3% YoY), with 2Q26 revenue reaching IDR 1.74T (+1.4% YoY; +1.4% QoQ). Topline growth remained primarily supported by the fiber optic segment, while tower leasing revenue remained flat to slightly contracted. Tower leasing revenue stood at IDR 3.13T in 1H26 (-0.3% YoY), although 2Q26 showed a modest recovery to IDR 1.58T (+1.2% YoY; +1.7% QoQ).
• Fiber optic remained the key growth driver, with 1H26 revenue reaching IDR 325B (+6.0% YoY). However, growth momentum started to moderate in 2Q26, with revenue of IDR 162B (+3.5% YoY; -1.3% QoQ). While fiber continues to provide an incremental growth engine amid stagnant tower operations, its growth momentum is beginning to moderate. Fiber’s contribution to total revenue increased to approximately 9.4% in 1H26, compared with 8.9% in 1H25.
• By operator, Telkomsel remained the largest contributor, generating revenue of IDR 1.19T (+3.5% YoY) in 1H26, followed by Indosat at IDR 873B (+0.5% YoY). Meanwhile, revenue from XLSMART increased significantly to IDR 993B, primarily reflecting the change in the operator base following the XL Axiata–Smartfren merger.
🔹Margins Slightly Compressed, While Lower Finance Cost Supports Earnings Growth
• TBIG’s operating profitability came under modest pressure as revenue growth remained relatively stagnant. 1H26 gross profit stood at IDR 2.47T (-0.6% YoY), with GPM declining slightly to 71.4% from 72.0% in 1H25. Meanwhile, EBITDA stood at IDR 2.95T (-0.8% YoY), with EBITDA margin declining to 85.2% from 86.1% in the same period last year. Pressure was also evident at the operating profit level, with 1H26 EBIT reaching IDR 2.16T (-1.7% YoY) and OPM contracting to 62.3% from 63.5% in 1H25. The 7.3% YoY increase in operating expenses to IDR 315B was one of the key factors limiting operating profit growth amid a relatively flat topline.
• On the other hand, finance costs declined 4.7% YoY to IDR 880B, helping offset pressure on operating performance. Combined with improvements in other income and adjustments, net profit increased 1.6% YoY to IDR 836B, while NPM improved to 24.2% from 23.8% in 1H25. As such, 1H26 earnings growth was driven more by lower financing costs than by an improvement in the underlying earnings capacity of the tower business and operations.
🔹TBIG Portfolio: Tenancy Slightly Declined, While Operations Remain Resilient
• Operationally, TBIG continued to maintain a relatively stable portfolio scale. As of 2Q26, total towers reached 25,172 sites (+5.1% YoY), while total tenants stood at 42,224 (-0.8% YoY). Accordingly, tenancy ratio stood at approximately 1.68x, remaining relatively stable although slightly lower than 1.78x in 2Q25.The decline in tenant count reflects the impact of industry consolidation and several non-renewals following the XLSMART merger. Nevertheless, TBIG added 808 gross tenancies during 2Q26, comprising 599 new sites and 209 collocations, indicating that tenancy additions remain ongoing and the orderbook remains relatively solid.
🔹FY26 View: Maintaining Relatively Flat Revenue and Earnings Growth
• We maintain our FY26E forecast for TBIG, with 1H26 revenue and net profit reaching 49.7% and 58.4% of our respective estimates (NHKSI Research FY26E: Revenue IDR 6.97T; Net Profit IDR 1.43T). However, the faster earnings run-rate remains primarily supported by lower finance costs and adjustments rather than operational improvements. With topline growth remaining stagnant, tower leasing relatively flat, and fiber growth beginning to moderate in 2Q26, room for organic earnings growth remains to be proven. Accordingly, we maintain our FY26E estimates, while the quality of earnings growth warrants close monitoring as bottom-line support is increasingly driven by lower finance expenses, which may prove less recurring than underlying business growth.
🔹 “Hold” Recommendation with Target Price di IDR 1,450 / Share (Upside +0.3%)
• NHKSI Research gives a “Hold” recommendation on TBIG with a target price of IDR 1,450/share, implying 11.0x Forward EV/EBITDA (-2 STD vs. the 3-year historical average). We downgrade our rating to Hold because despite the emerging growth contribution from TBIG’s fiber optic segment, we see limited near-term catalysts capable of driving a meaningful rerating of the stock. Furthermore, TBIG’s valuation remains relatively premium versus MTEL and TOWR, with current TTM EV/EBITDA multiples of 10.5x for TBIG, 7.0x for MTEL, and 6.0x for TOWR. While TBIG retains the potential to deliver above-industry growth through its fiber segment, the weakening tenancy ratio over the past two years remains a key challenge, alongside the post-merger consolidation among mobile operators and moderating tower demand. Key risks include limited overall growth, weaker tenancy growth, and fiber segment growth falling short of expectations.
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