MTEL - Fiber Acceleration Drives FY26F Growth

KBVS Update
Tuesday, 3 March 2026

MTEL - Fiber Acceleration Drives FY26F Growth
(Reiterate BUY - TP: IDR750)

4Q25F: FTTT accelerates; tower core resilient. FTTT revenue set to rise 8.6% qoq (4Q25F), lifting contribution to 6.4% as fiber monetization and utilization improve. Tower leasing remains resilient, with ex-Java pricing power supporting stable cash flow. FY25F FTTT revenue +20.8% yoy, underpinned by both organic and inorganic expansion.

FY26F: Fiber scaling; margins expand. FTTT revenue set to grow +25.2% yoy to IDR735.5 bn on incremental rollout, while tower leasing rises +2.9% yoy, supporting FY26F revenue +5.5% yoy to IDR9.8 tn. Operating leverage and lower funding costs lift EBITDA +4.4% yoy to IDR8.1 tn and net profit +1.1% yoy to IDR2.1 tn (21.7% margin).

Reiterate BUY with TP of IDR750, based on 8.1x FY26F EV/EBITDA (-0.5SD 3yrs-historical mean).

Regards,
Steven Gunawan - KBVS Research