Brights initiates Buy rating for Sarana Menara Nusantara stock

Published on 10/05/2026 at 20:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Brights forecasts 7.90 percent earnings growth through fiscal 2030. Fiberization for Sarana Menara Nusantara stock reached 67.00 percent in first half of 2026.

TOWR, ID1000128804, Illustration mit AI erstellt.

Brights initiated a Buy rating on Sarana Menara Nusantara (ISIN ID1000128804) with a target of IDR 610 on September 30, 2026, citing easing merger-related churn risks and the beginning of a 5G investment cycle. The report also projects a 7.90 percent earnings compound annual growth rate through fiscal 2030, giving the analyst action a clear operating basis.

Fiber coverage reaches 67.00 percent

According to Brights on September 30, 2026, TOWR's tower fiberization reached 67.00 percent in the first half of 2026, compared with an Indonesian peer average of 50.00 percent to 60.00 percent. The company is therefore positioned to capture connectivity upgrades as mobile operators expand 5G capacity, although the same report identifies weaker fixed wireless access orders and floating-rate interest costs as risks.

Brights also said TOWR's adjusted net collocations declined by 552 between the second quarter of 2025 and the second quarter of 2026. The report states that the change represented less than 10.00 percent of the estimated overlap linked to the EXCL merger, while the remaining contract tenor was extended to 12 years from 7 years.

Revenue and profit keep growing

In the first half of 2026, consolidated operating revenue rose 12.70 percent year over year to IDR 7.20 trillion, while net income attributable to parent shareholders increased 12.40 percent to IDR 1.86 trillion, according to Antara News on September 8, 2026. EBITDA reached IDR 5.58 trillion, up 4.80 percent year over year, while the EBITDA margin was 77.40 percent, down from 83.30 percent.

The balance between growth and leverage is central to the investment case. TOWR reported contracted revenue of IDR 100.10 trillion through 2045 in the first half of 2026, nearly twice the IDR 52.20 trillion recorded in 2020, while net debt stood at IDR 44.10 trillion and net debt to EBITDA was 3.94 times, as Warta Ekonomi reported on September 8, 2026.

Market value and next report

TOWR had a market capitalization of IDR 24.1 trillion as of October 5, 2026. Through June 2026, the company managed 36,892 towers and 182,559 kilometers of fiber, while FWA customers had added 2,000 to 2,200 colocations, according to Kontan on September 8, 2026.

Quartr lists October 30, 2026 as the next earnings date. For investors, the key measure is whether higher fiberization and new 5G-related demand can offset lease-rate pressure and the company's elevated debt burden.