1. At a Glance
India’s highest dividend InvIT with a juicy 19% yield, 40%+ OPM, and assets lifted straight from Reliance Jio. But dig deeper, and this tower could be shakier than a Jenga stack in an earthquake.
2. Introduction with Hook
Imagine if someone paid you 19% a year just to own their telecom towers. Welcome to Altius Telecom Infrastructure Trust, formerly known as Data Infrastructure Trust (DIT)—a Brookfield-backed REIT-but-not-a-REIT for towers.
- ₹45,000 Cr+ market cap
- ₹840 Cr profit on ₹19,500 Cr revenue (FY25)
- But ₹50,000 Cr in borrowings and cash flow that screams “please refinance me”
3. Business Model (WTF Do They Even Do?)
This isn’t your traditional telecom stock—it’s an InvIT (Infrastructure Investment Trust). Think of it as a landlord for Jio towers:
- Owns & leases towers (from RJIL) to RJIL
- Earns lease income + infra fees
- 100% of operating tower business transferred to SDIL (its subsidiary)
- Bought Crest, an indoor coverage company, for ₹900 Cr
It’s a predictable cash cow… with the debt diet of a distressed startup.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Revenue | ₹19,581 Cr |
| Operating Profit | ₹7,983 Cr |
| Net Profit | ₹840 Cr |
| EBITDA Margin | 41% |
| EPS | ₹2.76 |
| Dividend Yield | 19% |
| Debt | ₹50,670 Cr |
Takeaways:
- Massive OPM, but equally massive interest outgo (₹3,630 Cr!)
- Profits compressed under depreciation and interest
- EPS low due to capital-heavy model
5. Valuation
- Price: ₹148
- P/E: ~53x
- EV/EBITDA: ~9x (reasonable for infra)
- Price/Book: 2.98x
- Book Value: ₹49.4
- Dividend Yield: 19% (Insane… or unsustainable?)
Fair Value Range (FV):
₹115–₹135 under conservative debt and earnings assumptions
₹145–₹160 assuming sustained cash flows and better spreads
Valuation here is all about cash flows, not earnings. You’re buying this like a bond, not a growth stock.
6. What’s Cooking – News, Triggers, Drama
- New Name Alert: Rebranded from Data Infrastructure Trust to Altius in 2025
- AGM on July 25, 2025: Big decisions on distribution policy amendments
- Debt is ballooning: Up 60% YoY
- Brookfield still at the helm—that’s the stabilizer
- Concerns: Low ROE (5.91%), low interest coverage, high depreciation
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹31,273 Cr |
| Reserves | ₹(16,209) Cr |
| Borrowings | ₹50,670 Cr |
| Other Liabilities | ₹9,003 Cr |
| Total Assets | ₹74,737 Cr |
| Fixed Assets | ₹65,740 Cr |
| CWIP | ₹155 Cr |
Key Notes:
- Negative reserves = accumulated losses
- CWIP negligible → little growth CAPEX
- Asset-heavy, cash-flow sensitive beast
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY25 | ₹7,066 Cr | -₹14,150 Cr | ₹4,368 Cr | -₹2,716 Cr |
Observations:
- Operating cash is strong but eaten alive by CAPEX and debt servicing
- Net cash flow negative = refinancing risk
- Future depends on Brookfield’s ability to juggle
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| OPM | 41% |
| ROCE | 8.24% |
| ROE | 5.91% |
| D/E | 1.6x+ |
| Dividend Yield | 19.0% |
| Interest Coverage | ~0.5x |
Verdict:
The yield is hot, but coverage is not. It’s a race between payout and payoff.
10. P&L Breakdown – Show Me the Money
| Year | Sales | EBITDA | Interest | PAT |
|---|---|---|---|---|
| FY25 | ₹19,581 Cr | ₹7,983 Cr | ₹3,630 Cr | ₹840 Cr |
Notes:
- Interest + depreciation > EBITDA in many quarters
- PAT margins razor thin
- Growth not from topline, but from maintaining yield expectations
11. Peer Comparison
| Company | P/E | Dividend Yield | ROCE | OPM |
|---|---|---|---|---|
| Altius Telecom | 53.5x | 19% | 8.24% | 41% |
| Cube Highways | NA | 8.56% | 3.91% | 67.5% |
| Energy Infra Trust | 618.7x | 9.77% | 4.2% | 35% |
| Indus Infra Trust | 10.8x | 9.03% | 9.32% | 70% |
Takeaway:
Altius wins on yield. But P/E and leverage look concerning compared to Indus Infra.
12. Miscellaneous – Structure & Shareholding
- Sponsor: Brookfield (via BIF IV Jarvis India)
- Investment Manager: Brookfield India Infra Manager Pvt Ltd
- Trustee: Axis Trustee Services
- First Asset: SDIL, owns all Jio tower infra
- Units Listed: BSE since 2020
- Distribution Policy: Recently amended (watch for July 2025 vote)
13. EduInvesting Verdict™
Altius Telecom Infrastructure Trust is the 19% dividend magnet that gives you all the vibes of passive income… until you realize it’s sitting on a skyscraper of debt. Brookfield brings credibility, but sustainability is in question if interest rates rise or RJIL sneezes.
For now, this is not a growth story—it’s a yield trap with scaffolding. You’re not betting on 5G or towers… you’re betting that the trust can keep refinancing and distributing forever.
So enjoy the income, but don’t forget to read the tower lease fine print.
Metadata
Written by EduInvesting Research | July 15, 2025
Tags: Altius Telecom, InvIT, Brookfield, Dividend Yield, Infrastructure Trust, RJIL Towers, 13-point article
