Strong Business Model

The company operates a solid model by adding and leasing towers to telecom operators, generating recurring revenue for over 10 years. Present in 15 telecom circles and 26 states/UTs with 4,360 telecom towers and 5,144 tenancies, the company is now focusing more on Small Cell Sites to support 5G expansion.

Aggressive Capacity Expansion

Small cell sites are crucial for 5G rollout. The company plans to add 3,000-5,000 new tenancies (small cell and macro towers) annually over the next 2-3 years, requiring an annual capex of ₹250-300 crores. It aims to triple its tenancy count from 5,100 to ~15,000 by adding 10,000 new tenancies and has received orders for 3,000 new macro towers and 1,000 small cell towers from major operators.

Fiberization and FTTH Growth 

With India's tower fiberization at ~35%, the government aims to boost this to ~70% in two years. STL is advancing last-mile fiberization, deploying 5,000+ kms mainly in Mumbai, Maharashtra, Gujarat, and NCR, and is focusing on FTTH rollout. The company expects the FTTH and Fiberization to be a big opportunity going forward.