TOWR - Fiber inflection drives FY26F earnings growth

KBVS Update
Wednesday, 28 January 2026

TOWR - Fiber inflection drives FY26F earnings growth
(Reiterate BUY - TP: IDR800)

4Q25F: FTTT delivers a clear step-up. TOWR’s fiber-led strategy is delivering a clear inflection, with 4Q25F FTTT revenue up 11.6% qoq on improved monetization as fiber length and utilization continue to scale. FTTT contribution edges higher to 17.4%, underpinning FY25F revenue growth of 16.2% yoy. We see fiber as a durable growth driver, with upside tied to faster utilization gains and execution risk centered on rollout pace and tenant uptake.

FY26F outlook: non-tower leads, margins stay intact. FY26F growth is set to be led by non-tower revenue (+11.2% yoy), driven by continued fiber scaling, with FTTT now a key earnings pillar and FTTH expansion nearing management’s 2.0 mn homepass target. Overall revenue is expected to grow 7.9% yoy in FY26F, accelerating from FY25F. A higher contribution from high-margin fiber services should cap cost pressures, supporting ~8% EBITDA and net profit growth, with margins remaining resilient.

Reiterate BUY with TP of IDR800, based on 8.9x FY26F EV/EBITDA (-0.5SD 7yrs-historical mean).

Regards,
Steven Gunawan - KBVS Research