XA Update Report | PT Dayamitra Telekomunikasi Tbk. (MTEL) – Stable Despite Slow Growth, Fiber Lends Support in FY25
By Leonardo Lijuwardi (Senior Analyst)
15-Apr-2026
MTEL closed FY25 with revenue reaching IDR 9.53T, increased by 2.4% YoY (FY24: IDR 9.31T). On a quarterly basis, MTEL’s revenue in 4Q25 increased by +16.1% QoQ and +9.8% YoY to IDR 2.65T (3Q25: IDR 2.28T | 4Q24: IDR 2.41T). MTEL’s 4Q25 EBITDA recorded at IDR 2.07T (+8.2% QoQ, +4.4% YoY), bringing FY25 EBITDA to IDR 7.84T (FY24: IDR 7.69T). 4Q25 net profit booked at IDR 576B (+28.6% QoQ, +0.4% YoY) driven by lower interest expense which was down by 10% QoQ. Cumulatively, FY25 delivered solid earnings at IDR 2.12T (+0.5% YoY), in line with our expectation (99.5% of our estimate, NHKSI Estimate for FY25F: IDR 2.13T). Profitability maintained with FY25 NPM at 22.2% and EBITDA margin at 82.2%. Going forward, we expect that MTEL’s FY26F earnings performance could reach 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 700 / share.
🔹 Fiber Steps Up While Tower Leasing Stays Resilient
• Stable tower leasing revenue. The tower leasing segment recorded IDR 7.79T (+2.2% YoY) in FY25 with 4Q25 booked IDR 2.11T (+12% QoQ), driven by additional towers and colocations. The tower-related business segment recorded 4Q25 revenue at IDR 284B (+116.8% QoQ, -11.5% YoY), bringing its FY25 revenue to IDR 675B (+6.5% YoY). This was primarily driven by subsidiary Persada Sokka Tama. Meanwhile the tower reseller segment fall to IDR 490B, reflecting the gradual phase-out of this segment amid ongoing consolidation. (-12.3% YoY). As of FY25, MTEL recorded 40,230 towers (+2.1% YoY) and aiming for ~2,500 additional tenants in FY26.
• Fiber optic growth starts to accelerating. The fiber optic segment recorded a +18.1% YoY growth, reaching IDR 574B in FY25 (FY24: IDR 486B) and on a quarterly basis grew +16.1% YoY to IDR 143B in 4Q25 (4Q24: IDR 138B & 3Q25: IDR 144B). Its contribution up to 6% in FY25 (FY24: 5.2%), which we expect that in FY26, the fiber contribution could reach 6.7%, in line with network fiber demand growth. MTEL has recorded a fiber network totaling 57,199 km in FY25 (+12.1 YoY) and targeted to reach ~66,000 km in FY26F. While the fiber segment accounts for under 10%, it continues to act as a primary growth engine for MTEL, offsetting the relatively flat performance of tower leasing business. MTEL’s Fiber-to-the-Tower (FTTT) business continues to grow as mobile operators ramp up network investments to improve connectivity and capacity.
• Telkomsel remains as the biggest tenant operator. Based on the tenant operators, revenue from Telkomsel increased by +5.0% YoY to IDR 5.2T in FY25, making its contribution increased to 55% from 53%. Meanwhile, revenue from other operators: EXCL grew by +17.7% YoY post-merger to IDR 1.3 trillion in FY25 (FY24: IDR 1.13T| 4Q25: IDR 512B, Quarterly Basis: +13.2% QoQ & +15.9% YoY), and ISAT recorded a +5.3% YoY growth to IDR 1.92 trillion in FY25 (FY24: IDR 1.83T | 4Q25: IDR 321B, Quarterly Basis: -14.9% QoQ & +1.9% YoY).
🔹 Operational Performance: Maintaining Strong Operational Margins Despite Flat Revenue
• Discipline cost management keeping stable margins. Operational expense increased by 5.4% YoY, while keeping EBITDA stable at IDR 7.83 trillion (+1.8% YoY). MTEL also recorded lower interest expense in 4Q25 at IDR 273 billion (-10% QoQ & -15.8% YoY), bringing interest expense in FY25 down to IDR 1.15 trillion (-3.9% YoY). This cost efficiency amid flat revenue performance keeps profitability margin to stay at stable level with GPM maintained at 50.4% and NPM at 22.2%.
🔹 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 22,854 units in FY25 (FY24: 20,464 units, +11.7% YoY & 9M25: 21,885 units, +4.4% QoQ) and the number of tenancies increased by +1.8% QoQ and +6.1% YoY to 63,084 tenants in FY25 (FY24: 59.431 & 9M25: 61,987), driving the Tenancy Ratio for FY25 period to 1.57 x, climbing from 1.52 x in FY24.
• Strong Tenant Growth Outside Java: For the FY25 period, 59% of tower portfolio was from outside Java, accounting for 23,698 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 4% YoY, highlighting bigger potential from outside Java.
🔹 FY26F : Expecting Stagnant Revenue Growth and Stable Net Profit
• For 2026 year, we expected 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%.
🔹 “Buy” Recommendation with Target Price at IDR 670 / Share (+ 26.4% Upside Potential)
• NHKSI Research recommends “Overweight” 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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