Suyog Telematics powers India’s 5G future with tower expansion

India is the second largest telecommunication market with the second highest number of Internet users. It is ranked second in International Mobile Broadband Internet Traffic & International Internet Bandwith. The telecom sector is divided into 3 categories Mobile ( Wireless connection ), Fixed Line ( Wired connection ), and Internet Services ( ISP).
Sources from the Indian industry associations have put the total Indian subscriber base of 1199.28 million as of 31 March 2024 with the gross revenue from the telecom sector at Rs 2.4 lakh crores. The telecom industry has evolved over the years moving from the traditional approach to NaaS approach. This shift has allowed telecom operators to scale up their operations, adapt to changing market demands, and allocate resources efficiently being more flexible and cost effective. Industry data suggests that India’s 5G subscriptions to climb to 350 million by the year 2026 accounting for 27% of all mobile subscribers. Moreover the Govt of India has introduced the Digital India programme where sectors such as healthcare, retail, etc will be connected through Internet. In the telecom sector , Suyog Telematics is a dynamic player in the telecommunications industry specialising in cutting edge telecom tower infrastructure solutions driving connectivity in both urban and rural areas.
The company is focusing on high power small cell infrastructure, fibre connectivity and environment friendly solutions. It has a diverse portfolio and a client base that includes major telecom operators playing a key role in transforming cities into 5G ready hubs and powering rural villages with advanced network capabilities. It has built over 10,000 rooftop towers for BSNL ( EPC ) and is the only IP company to have maximum government sites . The company offers services such as tower erection , fibre optics network solutions and pole erection . It has a wide product portfolio of ground based tower, rooftop tower, cow tower, GBM tower and camouflage tower . Suyog Telematics specialises in the deployment and maintenance of telecom towers which forms the backbone of mobile communication networks . These towers provide the necessary infrastructure for telecom operators to host their equipment, ensuring seamless voice and data transmission across various regions.
Suyog telecom towers are strategically located to maximise coverage, catering to both urban and rural areas and to support multiple tenants thereby enhancing operational efficiency. The company has developed an extensive optical fibre cable ( OFC )network that forms the backbone of high speed data transmission for telecom operators . This OFC network is crucial for supporting the growing demand for data services, particularly with the advent of 5G technologies. Suyog Telematics OFC infrastructure is designed to offer high reliability, low latency and large bandwidth capacity enabling telecom operators to deliver superior network services to their customers . The company also has a slum sites segment where installations are situated in densely populated and congested areas .
Key benefits are high revenue generation, low site rentals and low termination risk .Recognising the need for enhanced network capacity and coverage in densely populated areas, Suyog telematics also provides small cell infrastructure solutions. These small cells are compact, low power nodes that compliment the macro network by offering data traffic, improving network capacity and enhancing user experience in high demand areas such as city centres, stadium and campuses. Its small cell solutions are vital for supporting the transition to 5G network. Suyog Telematic also offers rooftop Towers and pole sites as part of its infrastructure service. These are particularly effective in urban areas where space constraints make it challenging to traditional telecom towers. Therefore, rooftop towers and poles are installed on buildings and other structures providing an effective solution for enhancing coverage and network performance in metropolitan areas. These sites are designed to accommodate multiple telecom operators, promoting efficient use of urban spaces. In addition to deploying telecom infrastructure,
Suyog Telematics offers comprehensive operation and maintenance O&M services. These services ensure that the telecom infrastructure operates at optimum efficiency, minimising downtime and then enhancing the reliability of the network. These O&M services include regular inspection, preventive maintenance and quick response to any operational issues thereby ensuring an interrupted service for telecom operators and their customers. The company specialises in identifying and securing optimal locations with appropriate infrastructure for telecom operators. This service includes leasing existing telecom sites or providing new sites when needed . By leveraging this infrastructure leasing service, operators can expand their network coverage cost effectively and minimising capital expenditure.
Plans of the company are quite bright with Suyog Telematics having committed to a major expansion of passive tower infrastructure over the next two years. It plans to deploy over 10,000 passive towers and lay 5000 km of optical fibre network cables. The other strategic goals include plans to deploy over 3000 macro towers in the next two financial years with support from BSNL and Vodafone idea. These towers are essential for enhancing network reach and service quality across various regions. More plans include installing over 500 towers specifically in the MTNL Mumbai Circle to boost connectivity and network reliability in this high demand metropolitan area. It further aims to roll out over 1000 small cell towers in FY2025 but due to the scale of this initiative, the company expects some deployments to extend further into the financial year 2026. The company intends to lay over 5000 km of optical fibre network cable over the next two years enhancing extensive network infrastructure and high speed connectivity. Key competitive strengths of the company are a cost-effective model of minimum turnaround time , diversified engagement with telecom operators, 25 years of expertise and a wide geographical footprint. The quarterly financial highlights for Q1FY25 is quite impressive with year-on-year revenue at Rs 460 million up 19% , EBITDA up 21% at Rs 328 million , EBITDA margin up 149 bps , net profit up 38% at Rs 169 million and EPS up 35% at Rs 15.84 . The Suyog Telematics stock is currently hovering around Rs 1745 on the bourses and analysts and fund managers are very bullish on the scrip and expect a 30% price appreciation over the next one year time frame . Investors should consult their financial advisors and do their own analysis and assessment before committing to buying the stock.