ENA Sectors 2025-05-19 17:51:01 <p><span style="font-size:14px"><strong>New Delhi, May 19 (KNN) </strong>Investment Information and Credit Rating Agency (ICRA) has revised its outlook for India's telecom tower industry from 'Negative' to 'Stable'. </span></p> <p><span style="font-size:14px">This change is attributed to timely payments from key customers and the clearance of past dues, which have eased the receivables cycle for telecom tower companies.</span></p> <p><span style="font-size:14px">ICRA noted that the average receivable days have reduced to approximately 45 60 days, below the 80-day threshold that previously warranted a negative outlook. </span></p> <p><span style="font-size:14px">Ankit Jain, Vice President and Sector Head at ICRA, stated that the improved credit profiles of major telecom service providers have facilitated this positive shift.</span></p> <p><span style="font-size:14px">The agency projects that collections will remain timely, keeping industry debtor levels below 60 days. </span></p> <p><span style="font-size:14px">This is expected to lead to a reduction in external debt, with net external debt to operating profit before depreciation, interest, taxes, and amortisation (OPBDITA) projected at around 3.4 times for the fiscal year 2026.</span></p> <p><span style="font-size:14px">Additionally, the demand for telecom services, particularly data, is driving consistent network expansion and upgrades by telecom companies. This trend is benefiting tower companies through steady additions in tenancies. </span></p> <p><span style="font-size:14px">ICRA anticipates the telecom tower industry to experience an operating income growth of 4 6 per cent with operating margins around 70 75 per cent for FY2026. </span></p> <p><span style="font-size:14px">The improved liquidity position, aided by easing working capital requirements, is expected to bolster the industry's cash balances, further strengthening its financial health.</span></p> <p><span style="font-size:14px">This outlook revision marks a significant turnaround for the telecom tower sector, reflecting enhanced financial stability and growth prospects.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 42136 https://knnindia.co.in/news/newsdetails/sectors/icra-upgrades-telecom-tower-industry-outlook-to-stable-amid-improved-payments 2025-05-19 17:51:01 knnindia.co.in