ISAT - Clear Margin Expansion Ahead

KBVS Update
Monday, 6 April 2026

ISAT - Clear Margin Expansion Ahead
(Reiterate BUY - TP: IDR2,500)

Inline FY25; 4Q25 inflection visible. FY25 revenue was broadly flat (+1.1% yoy) on weaker data-revenue despite solid traffic, but profitability beat on tight cost-control, with EBITDA at IDR26.6 tn (56.2%) and net profit +12.2% yoy on lower interest costs.

FY26F: Data-led growth, FBB as upside. Growth remains anchored on data, with revenue +7.6% yoy to IDR46.7 tn driven by stable subs and +8.3% traffic, implying steady yields and slight ARPU uplift. FBB adds incremental upside (+6.6% subs), supporting total revenue growth of +4.9% yoy to IDR59.3 tn.

Margins: Discipline to sustain expansion. Cost growth remains contained (cash-costs +4.3% yoy), supporting EBITDA +5.6% yoy to IDR28.1 tn and margin at 47.4%. Net profit reaches IDR6.0 tn (10.2% margin), aided by operating leverage and lower financing costs.

Reiterate BUY with TP of IDR2,500, based on 3.3x FY26F EV/EBITDA(+0.5SD 5yrs avg. historical mean).

Regards,
Steven Gunawan - KBVS Research