At a Glance
Altius Telecom Infrastructure Trust (formerly Data Infra Trust) is the diva of InvITs – sky-high yield (18.7%) and a juicy dividend policy, but with leverage that could make a banker sweat. Q1 FY26 profit stood at ₹227 Cr on sales of ₹6,030 Cr. Despite this, the stock trades at a P/E of 55x and 3x book value. Investors love the yield but hate the debt – hence a stagnant price at ₹150.
Introduction
Picture an InvIT that’s both a cash cow and a ticking time bomb. That’s Altius Telecom Trust. Sponsored by Brookfield’s Indian arm, Altius owns and operates telecom towers (read: the backbone of your Instagram addiction). It dishes out fat distributions, but under the hood sits a borrowing mountain (₹50,670 Cr). The stock is where thrill-seekers meet income hunters – a wild mix of safety and risk.
Q1 FY26 numbers? Stable but not spectacular. Income steady, profit soft, and interest expense chewing up earnings. But as long as the trust keeps paying nearly 19% yield, investors will look the other way.
Business Model (WTF Do They Even Do?)
Altius is an infrastructure investment trust (InvIT) that owns tower assets leased to telecom operators. Think of it as a landlord collecting rent from Jio and friends, while passing most cash to investors as distributions.
The assets came from Reliance Jio, later managed by Brookfield, with expansion into indoor coverage solutions via Crest. Revenues are stable because telcos can’t just pack up towers. However, the business is debt-heavy – interest eats a large chunk of operating profit.
Financials Overview
The numbers tell a split personality story:
- Revenue (TTM): ₹22,056 Cr (+62% growth)
- EBITDA (TTM): ₹9,055 Cr (OPM 41%)
- PAT (TTM): ₹824 Cr (down 19%)
- EPS (TTM): ₹2.7
- Dividend Payout: 786% FY25 (translation: they paid out more than they earned – classic InvIT)
- ROE: 5.9%, ROCE: 8.2%
Verdict: Operating profits are sexy, net profits are sleepy, and distributions are on steroids.
Valuation
Current Price: ₹150
Book Value: ₹49.4 → P/B 3.03x
EPS: ₹2.7 → P/E 55x
🔹 Fair Value Estimates
- P/E Method: Sector avg 15x → ₹40 (ouch, overvalued if you look at earnings)
- EV/EBITDA: EV ≈ ₹1,08,660 Cr (12x EBITDA) – Debt ₹50,670 Cr → Equity ≈ ₹58,000 Cr → FV ≈ ₹190/unit
- DCF (Simplified): Stable cash flows, high distributions → FV ≈ ₹160/unit
Fair Value Range: ₹150 – ₹190 (valuation driven by yield, not earnings).
What’s Cooking – News, Triggers, Drama
- Q1 FY26: NAV ₹149.09/unit, profit ₹227 Cr.
- NCD Issuance ₹2,675 Cr – more debt, more drama.
- Distribution policy amended – expect payouts to stay high.
- Telecom sector consolidation may impact tower tenancies.
Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Assets | 49,657 | 74,737 |
| Liabilities | 49,657 | 74,737 |
| Borrowings | 31,367 | 50,670 |
| Net Worth | 13,370 | 15,064 |
Auditor Roast: Debt ballooned faster than your food delivery bill during IPL. Equity growth? Meh.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY24 | FY25 |
|---|---|---|
| Ops | 5,832 | 7,066 |
| Investing | -294 | -14,150 |
| Financing | -5,467 | 4,368 |
| Net Cash | 70 | -2,716 |
Auditor Roast: Cash ops strong, but investing outflows scream “we’re buying stuff like crazy.” Financing keeps the trust alive.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 5.91% |
| ROCE | 8.24% |
| P/E | 55.4x |
| PAT Margin | 3.7% |
| D/E | 3.36 |
Auditor Roast: Debt ratio hotter than gossip columns, P/E sky-high, ROE weak. But yield? Irresistible.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 11,100 | 12,878 | 19,581 |
| EBITDA | 4,238 | 4,842 | 7,983 |
| PAT | 797 | 1,119 | 840 |
Auditor Roast: Revenue up, EBITDA strong, PAT down. Classic “interest ate my homework” story.
Peer Comparison
| Peer | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Altius Telecom | 22,056 | 824 | 55.4 |
| Indus InvIT | 804 | 491 | 10.3 |
| Cube Highways | 3,523 | -39.1 | – |
| Energy InfrTr. | 4,006 | 8.9 | 607 |
Auditor Roast: Altius wins revenue game but loses on profitability. P/E makes no sense unless you only care about dividends.
Miscellaneous – Shareholding, Promoters
- Sponsor: Brookfield (global infra giant).
- Public Holding: Institutional heavyweights dominate.
- Buzz: AGM approved new valuation policy and continued high distributions.
EduInvesting Verdict™ (500 words)
Altius Telecom Trust is a paradox. It’s an InvIT built on stable tower revenues, backed by Brookfield, and showering investors with nearly 19% yield. Yet beneath the surface, profit margins are wafer-thin, leverage is Himalayan, and the P/E is nosebleed territory at 55x.
For income seekers, Altius is like that friend who always picks up the tab – generous, but you keep wondering how they afford it. Distributions remain high, but sustainability depends on refinancing debt at reasonable rates and maintaining tenant contracts.
SWOT Analysis
- Strengths: Strong sponsor, stable tower rentals, high yield.
- Weaknesses: High debt, low profit margins, weak ROE.
- Opportunities: 5G rollout boosting demand, indoor coverage expansion.
- Threats: Rising interest rates, telecom operator defaults, regulatory tweaks.
Final Word: Altius is a yield play, not a growth story. If you’re an investor chasing distributions and can stomach debt risk, keep collecting those payouts. If P/E ratios make you queasy, better to watch from the sidelines.
Written by EduInvesting Team | 31 July 2025
SEO Tags: Altius Telecom Trust, Brookfield InvIT, Telecom Infrastructure, High Dividend Yield
