Telkom Indonesia stock: Q3 growth meets targets as margins lag
Published on 11/05/2026 at 09:48 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSRevenue Growth Meets Margin Pressure
- Telkom Indonesia's nine-month revenue reached the high end of its 2026 growth target.
- Normalized profit improved, while reported earnings and the EBITDA margin came under pressure from one-off effects and transformation costs.
- Management expects seasonal demand, network monetization and portfolio streamlining to support the fourth quarter.
Telkom Indonesia reported stronger revenue and normalized profit for the first nine months of 2026, while profitability remained under pressure. The company said on November 2 that consolidated revenue rose 3.5 percent year over year to IDR 113.5 trillion, according to Telkom Indonesia.
Growth Reaches The Guidance Range
Data, internet and IT services provided the main growth contribution, with revenue from the business rising 8.3 percent to IDR 71.5 trillion. Telkomsel revenue increased 1.8 percent to IDR 82.9 trillion, supported by 7.7 percent growth in data revenue. The official figures also showed a 7.1 percent increase in nine-month mobile average revenue per user to IDR 45,400.
EBITDA increased 2.0 percent to IDR 55.5 trillion, but the margin was 48.9 percent. Management attributed the pressure to IndiHome cleansing costs, enterprise resource planning expenses and other transformation effects. Reported net income fell 4.3 percent to IDR 14.4 trillion, while normalized net income, after one-off items, rose 3.9 percent to IDR 16.5 trillion.
Targets Stay Unchanged
Management retained its 2026 targets for revenue growth of 1 to 3 percent, an EBITDA margin above 50 percent and a capital-to-revenue ratio of 17 to 19 percent. Nine-month revenue growth was already above the upper end of that range, but the EBITDA margin and capital intensity remained below the full-year objectives.
In an Investing.com account of the earnings call published on November 3, management pointed to a stronger fourth quarter. Seasonal demand, Telkomsel's market-repair program and more aggressive network monetization are expected to support mobile performance. The company also expects capital spending to accelerate in the fourth quarter to meet its full-year investment ratio.
The enterprise business is being shifted into the Digiserve operating platform. Management said the internal transfer does not itself create additional consolidated revenue or earnings; potential benefits depend on lower overlap, better customer coverage, cross-selling and execution. Telkom also plans continued investment in data centers, subsea cables and network modernization, which could lift capital spending in 2027 and 2028.
Mixed Signal For Investors
The results leave investors with a mixed operating picture. Top-line growth and normalized profit point to progress in mobile monetization and portfolio restructuring, while the margin shortfall and weaker reported earnings show that transformation costs have not yet been absorbed. The unchanged guidance places greater importance on fourth-quarter execution and the conversion of revenue growth into cash generation.
The real-time quote of Telkom Indonesia stock was 9.80 euros on Lang & Schwarz at 09:37 CET on Thursday, November 5, 2026.
Telkom Indonesia Stock Facts
- Company: PT Telkom Indonesia (Persero) Tbk
- ISIN: US7156841063
- Ticker: TLK
- Quote: 9.80 euros on Lang & Schwarz, Thursday, November 5, 2026, at 09:37 CET
- Nine-month revenue: IDR 113.5 trillion, up 3.5 percent year over year
- Normalized net income: IDR 16.5 trillion, up 3.9 percent year over year
- EBITDA margin: 48.9 percent
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More news and analyses on Telkom Indonesia stock will track guidance delivery, margin recovery and capital allocation.
