MTEL - Two-Engine Growth Story

KBVS Update
Tuesday, 1 September 2026

MTEL - Two-Engine Growth Story
(Maintain BUY - TP: IDR680)

FTTT monetization gaining momentum. We see FTTT as MTEL’s key incremental growth driver, supported by rising MNO network demand and AI-driven data traffic. We forecast 3Q26F FTTT revenue to grow +7.0% QoQ to IDR168.1bn and reach IDR677bn in FY26F (+18.0% YoY).

Co-location demand to drive steady tower growth. Tower-leasing should remain resilient, with 3Q26F revenue +2.7% QoQ, supported by tenant and site expansion, while higher lease-rates underpin monetization.

FY26F: Fiber growth complements a stable tower base. We maintain our FY26F forecasts, with revenue rising +2.7% YoY to IDR9.8 tn, driven by +18.0% FTTT growth. Operating leverage should lift EBITDA +3.0% YoY to IDR8.1 tn, with margin expanding to 82.4%. Net profit is forecast to grow +3.3% YoY to IDR2.2 tn.

Maintain BUY, TP IDR680, on 8.3x FY26F EV/EBITDA.

Regards,
Steven Gunawan - KBVS Research