1. At a Glance
Suyog Telematics Ltd is that rare telecom infrastructure company which prints OPM north of 60%, enjoys 10+ year MSAs with built-in 2.5% escalation, has exclusive government licences in Mumbai, and still manages to make shareholders question life choices over the last 12 months.
Market cap sits at ₹636 Cr, stock price ₹543, down 62% YoY, despite Q3 FY26 revenue of ₹52.6 Cr and PAT of ₹14.5 Cr. ROCE is 13.7%, ROE 11.6%, debt-to-equity 0.54, and EV/EBITDA a not-so-scary 6.7x.
Operationally? 5,517 towers, 6,461 tenancies, nearly 4,000 small cell tenancies, and 5,561 km of fibre. Financially? PAT growth looks moody, depreciation is partying hard, and debt has been lifting weights.
So the real question: is this a boring annuity infrastructure play temporarily misunderstood by Mr Market, or a reminder that high margins alone don’t guarantee shareholder happiness?
2. Introduction
If Indian telecom were a daily soap, Suyog Telematics would be that side character who quietly owns the house everyone lives in but never gets invited to the family function. No flashy spectrum auctions, no ARPU drama — just poles, towers, fibre, and long-term contracts.
Incorporated in 1995, Suyog operates as an IP-I telecom infrastructure provider, meaning it doesn’t sell minutes or data — it rents the roads on which data travels. This is a fundamentally boring, predictable, and cash-generative business… at least on paper.
But then you look at the stock chart. A ₹1,500 high, now chilling near ₹540. Meanwhile, revenues keep growing at ~10% CAGR and
operating margins stay obscene.
So what’s going on? Heavy capex, rising depreciation, BSNL bets, Vodafone exposure, promoter reshuffles, and a market that currently hates anything remotely capital-intensive. Let’s break it down slowly, with chai.
3. Business Model – WTF Do They Even Do?
Imagine you’re Airtel or Jio. You want coverage everywhere, fast. Do you buy land, erect towers, manage permissions, deal with housing societies, and argue with municipalities? Or do you call Suyog?
Suyog’s model is simple and sneaky-smart:
- Identify a site faster than competitors
- Lease land, deploy tower or pole infrastructure
- Rent it out under long-term MSAs (average 10+ years)
- Add co-locations — more tenants, same tower, higher margins
Exit penalties + lock-in periods ensure operators don’t randomly ghost. Add a 2.5% annual escalation clause, and you get predictable revenue without selling a single SIM card.
Their portfolio spans GBT, RTT, monopoles, COW towers, camouflage towers, and increasingly small cells — which is where 5G density games are played.
It’s not sexy. But it’s sticky. And sticky businesses usually age well — unless
