MTEL - Fiber and Co-Location Support FY26F Growth

KBVS Update
Thursday, 9 April 2026

MTEL - Fiber and Co-Location Support FY26F Growth
(Reiterate BUY - TP: IDR680)

FY25: Inline, with profit resilience. FY25 EBITDA reached IDR7.8 tn (+1.8% YoY), broadly inline, as efficiency gains offset higher CoR. 4Q25 momentum improved (EBITDA +8.0% QoQ; revenue +16.2% QoQ), with net profit +28.1% QoQ on lower funding costs. Earnings met expectations, supported by scale benefits and cost discipline.

FY26F: Fiber scales up, co-location sustains growth. FTTT revenue to grow +18% YoY (IDR677 bn), lifting contribution to 6.9% on continued fiber rollout. Tower leasing remains stable (+1.5% YoY) with solid co-location demand and resilient pricing. Overall FY26F revenue seen at IDR9.8 tn (+2.7% YoY).

Margins: operating leverage improves with scale and co-location intensity. Co-location-driven scale keeps cost growth contained (CoR +2.7% YoY), supporting EBITDA +3.0% YoY to IDR8.1 tn and margin expansion to 44.1%. Below EBITDA, funding-cost discipline lifts net profit +3.3% YoY to IDR2.2 tn (22.4% margin).

Reiterate BUY with TP of IDR680, based on 7.1x FY26F EV/EBITDA (-0.8SD 3yrs-historical mean).

Regards,
Steven Gunawan - KBVS Research