Summit Digitel Infrastructure Limited issuer summary: Indian tower SPV with contracted cash flow reaffirmed in FY2026

Date prepared: 2026-06-02
Issuer: Summit Digitel Infrastructure Limited
Issuer type: Unlisted tower infrastructure SPV under Altius Telecom Infrastructure Trust
Main debt covered: Indian rupee-denominated NCDs, bank borrowings, and foreign-currency Senior Secured Notes due 2031

1. Business Snapshot and Recent Developments

Summit Digitel Infrastructure Limited (hereafter Summit Digitel or SDIL) is an unlisted telecom infrastructure SPV that owns and operates tower infrastructure in India. It is 100% owned by Altius Telecom Infrastructure Trust, a SEBI-registered InvIT managed by a Brookfield-affiliated investment manager. For credit analysis, SDIL should be viewed not as a conventional telecom service provider, but as an infrastructure issuer that receives tower usage fees mainly under a long-term master services agreement (MSA) with Reliance Jio Infocomm Limited (RJIL), and uses that contracted cash flow to service and refinance external debt.

The FY2026 results released on May 4, 2026 do not materially change this basic view. Rather, they provide a more recent numerical confirmation of the existing credit profile. FY2026 operating revenue was Rs 140,634 million, up around 3% from Rs 136,417 million in FY2025. Operating margin after deducting network operating expenses from operating revenue was 39%, unchanged from 39% in FY2025. The company remained loss-making on an accounting basis, with a FY2026 loss after tax of Rs 24,105 million, although the loss narrowed from Rs 29,952 million in FY2025.

The important point in reading these results is not the modest revenue increase, but the fact that the contracted revenue and cost-recovery structure has not broken down, and that accounting interest on the parent InvIT loan should be separated from actual debt service on external senior debt. The DSCR and ISCR disclosed in the FY2026 financial statements are both 0.88x, which appears to be below 1.0x on the surface. However, these metrics include Rs 38,794 million of interest on the parent InvIT loan. The parent InvIT loan is not pari passu with senior debt and has historically been treated as subordinated to external creditors. For senior debt credit analysis, therefore, it is necessary to distinguish between external debt, the parent loan, domestic NCDs, and the USD 2031 notes.

Alongside the financial results, the FY2026 disclosure package included the security cover certificate, NCD proceeds utilisation statement, related party transaction disclosure, and audit opinion. The security cover certificate shows that, as of end-March 2026, listed secured NCDs had security cover of more than 100% against principal and interest. This is a useful confirmation of bondholder protection, but it does not directly guarantee the continuation of the MSA, sponsor support, or successful future refinancing. Security is an important secondary protection. The primary repayment source remains contracted cash flow, mainly from RJIL.

The issuer’s credit profile can be summarised as follows.

2. Industry Position and Franchise Strength

Summit Digitel’s industry position is that of a tower infrastructure company, but it differs somewhat from a typical diversified multi-tenant tower company. Its assets are deeply embedded in RJIL’s network, and the starting point for credit quality is the cash flow generated under the long-term MSA with RJIL. The scale confirmed in existing materials as of FY2025-end was 174,451 towers, 185,462 tenancies, and a tenancy ratio of 1.06x, making it a large-scale tower platform operating across all 22 telecom circles in India.

This scale supports the credit profile. Once telecom towers are embedded in a network, they are not easily replaced, given site, power, maintenance, permitting, and relocation costs. As long as the importance of existing towers to RJIL is maintained, Summit Digitel’s revenue visibility is also likely to remain high. CRISIL also cites the strong business linkage with RJIL, SDIL’s strategic importance to RJIL, and the long-term MSA as key rating supports.

At the same time, the public utility-like nature and social importance of telecom infrastructure should not be confused with an explicit bond guarantee or sponsor support. Telecom towers are infrastructure assets with a public-service character, but SDIL’s debt is not legally guaranteed by the Indian government or by RJIL. As a supplementary regulated-utility-style check, investors should look at telecom infrastructure permits, sites, power, tariff and cost recovery, and the impact of network densification. However, the centre of the credit assessment is not a regulated tariff framework, but the MSA, customer concentration, secured external debt, and refinancing capacity.

Third-party tenancies remain a potential upside factor. A tenancy ratio of only 1.06x means revenue diversification is still limited. Additional third-party tenants could reduce reliance on RJIL and improve asset efficiency, but the number of telecom operators in India is limited, and rapid diversification should not be assumed. The FY2026 results do not allow confirmation of revenue by customer or contribution by third-party tenant. This report therefore treats third-party tenancy not as a factor already embedded at the core of the credit profile, but as an upside factor to monitor.

3. Segment Assessment

In the financial statements, the company is disclosed mainly as a single-segment business. The notes to the FY2026 financial results state that the company’s principal business is the installation, operation, and maintenance of passive tower infrastructure and related assets, together with related services, and that under Ind AS 108 it has a single business segment and a single geographical segment. The notes also state that substantially all revenue is generated from a single customer. This is an important disclosure that reconfirms the credit substance of RJIL concentration.

FY2026 profit and loss reflects modest revenue growth alongside a moderate increase in costs. Operating revenue was Rs 140,634 million and network operating expenses were Rs 86,069 million, leaving a difference of Rs 54,565 million. The company-disclosed operating margin was 39%, unchanged from FY2025. This indicates that, even with increases in operating costs such as power, fuel, site leases, and maintenance, the contract and recovery structure has prevented a material margin breakdown.

The conclusion from this section is that the FY2026 results are characterised by stability confirmation rather than high growth. In the tower business, contracted cash flow, cost recovery, uptime, and the strategic importance of the assets matter more than short-term revenue growth. The 39% operating margin in FY2026 supports this point, but it does not confirm progress in customer diversification.

4. Financial Profile and Analysis

Summit Digitel’s financial analysis needs to be separated into three layers. The first is accounting profit and loss, where losses continue because of depreciation and interest on the parent InvIT loan. The second is operating cash flow, with FY2026 operating cash flow of Rs 50,768 million. The third is the ability to service and refinance external senior debt, which should be assessed using external debt, security, DSCR, and refinancing access, not total borrowings including the parent loan.

The loss narrowed in FY2026. Operating revenue increased from Rs 125,094 million in FY2024 to Rs 136,417 million in FY2025 and Rs 140,634 million in FY2026, showing steady growth over the three years. However, the growth rate slowed from FY2025 to FY2026, and FY2026 should not be read as a year of accelerating growth. Operating earning power after deducting network operating expenses increased from Rs 49,201 million in FY2024 to Rs 53,488 million in FY2025 and Rs 54,565 million in FY2026. This indicates that the contracted revenue and cost-recovery structure, mainly with RJIL, has not materially deteriorated.

Accounting profit and loss also improved. The loss narrowed from Rs 30,377 million in FY2024 to Rs 29,952 million in FY2025 and Rs 24,105 million in FY2026. Finance costs declined from Rs 66,799 million in FY2025 to Rs 62,096 million in FY2026, but they remain close to the scale of operating cash flow and are the main factor weighing on accounting profit. Negative net worth expanded from Rs 147,397 million at FY2024-end to Rs 177,906 million at FY2025-end and Rs 201,333 million at FY2026-end. For a conventional operating company, this would be a serious weakness, and it also constrains SDIL’s capital structure flexibility. However, because the subordination and payment restrictions on the parent InvIT loan must be considered at the same time, negative net worth alone is insufficient for judging the credit quality of senior external debt.

Viewed over three years, revenue and operating earning power have increased, while operating cash flow has declined from its FY2024 peak. FY2026 operating cash flow of Rs 50,768 million was almost the same as finance costs paid of Rs 51,866 million in the same year. Therefore, FY2026 was not a year in which earnings power deteriorated, but neither was it a year in which operating cash flow comfortably absorbed all finance costs and refinancing needs. Refinancing market access, treatment of parent loan interest, and changes in secured external debt must be assessed together.

This three-year trend suggests that Summit Digitel’s credit quality should be read not as a rapid improvement story, but as a structure operating with thin headroom while maintaining its core architecture. Operating revenue increased by around 12% from FY2024 to FY2026, and the amount left after deducting network operating expenses from operating revenue also increased, indicating that the tower usage revenue and cost-recovery mechanism is functioning. At the same time, operating cash flow declined from Rs 58,198 million in FY2024 to Rs 50,768 million in FY2026, and the cash balance has not built materially. In other words, the business is stable, but it is not at the stage of accumulating thick surplus cash. For senior creditors, the key issue is not business stability in isolation, but how that stable cash flow is allocated among external debt service, refinancing costs, parent loan-related payments, and maintenance capex.

The movement in external debt leads to the same reading. If the parent InvIT loan of Rs 258,800 million is simply deducted from total borrowings of Rs 562,568 million at FY2026-end, estimated external borrowings are Rs 303,768 million. This is close to the Rs 306,607 million aggregate of NCDs and other pari passu secured debt in the security cover certificate, suggesting that the size of external secured debt has not materially changed. However, this is only an estimate based on the disclosed materials and does not fully break down the exact balances, accrued interest, or hedge valuations for each bank borrowing, ECB, USD note, and domestic NCD. Investors need to consider that external debt relative to operating cash flow remains high, that an additional Rs 19,000 million of NCDs was issued after FY2026-end, and that any increase in pari passu debt sharing the same security pool would reduce cover headroom.

The DSCR and ISCR disclosed by the company were both 0.88x for FY2026. The important caveat is that the company-disclosed ratios include accounting finance costs and also include Rs 38,794 million of interest on the parent InvIT loan. Ratios including parent loan interest are useful in showing the burden on the issuer as a whole, but they do not directly show repayment capacity for senior external debt alone. This is also why CRISIL has focused on external debt DSCR.

Operating cash flow remains substantial. FY2026 operating cash flow was Rs 50,768 million, slightly lower than Rs 52,381 million in FY2025, but the operating cash generation base has been maintained. At the same time, finance costs paid were Rs 51,866 million, almost the same level as operating cash flow. This shows that finance costs, including parent loan interest, are compressing the issuer’s accounting surplus. As long as the payment ranking and actual payment restrictions on the parent loan are maintained, this does not immediately have the same meaning for senior creditors, but cash transfers, distributions, and accrued interest remain important monitoring items.

5. Structural Considerations for Bondholders

For Summit Digitel bondholders, the most important question is which debt has access to which cash flow and security. Treating all debt simply as “total borrowings” can lead to an incorrect credit assessment. The company has domestic NCDs, bank borrowings and other external senior borrowings, the USD 2031 Senior Secured Notes, and the parent InvIT loan. These differ in economic substance, security, currency, investor protection, and subordination.

The parent InvIT loan is Rs 258,800 million, and the same amount is shown in the related party transaction disclosure as the balance of loan taken from Altius Telecom Infrastructure Trust. This is a loan from Altius Telecom Infrastructure Trust and does not rank pari passu with senior external debt for recovery purposes. In the FY2026 related party transactions, the interest expense line for Altius records a half-year transaction amount of Rs 19,402 million. In the same line, the column for “monies are due to either party as a result of the transaction” shows an opening balance of Rs 43,134 million and a closing balance of Rs 48,554 million. Therefore, this Rs 48,554 million should be read, in the RPT context, as an unpaid or unsettled balance related to parent loan interest due to Altius, not as principal outstanding on domestic NCDs or USD notes.

This distinction is materially important in practice. Parent loan interest materially worsens accounting profit and loss and negative net worth, but it is separate from the security pool and NCD principal of senior external debt. Conversely, the fact that the parent loan is subordinated does not mean the accumulation of parent loan interest can be ignored completely. The larger the unpaid interest becomes, the greater the potential pressure from the parent InvIT’s recovery expectations, distribution policy, and future capital restructuring. Senior creditors need to monitor not only the legal subordination of the parent loan, but also actual interest payments, unpaid balances, amendments to terms, and intra-group cash movements.

As of end-March 2026, 14 domestic NCDs totalling Rs 126,000 million can be confirmed in the security cover certificate. These are classified as pari passu secured NCDs, with 100% cover required / security required shown for each ISIN. In the appendix to the security cover certificate, debt of Rs 126,000 million related to the NCDs and other pari passu secured debt and accrued interest of Rs 180,607 million are combined, giving total debt covered by the security cover calculation of Rs 306,607 million. Cover is 1.43x on a book-value basis and 2.06x on a market-value basis.

Security cover is an important protective factor. However, it confirms asset cover for secured debt; it does not directly guarantee the continuation of MSA revenue, RJIL’s credit quality, sponsor support, or successful future refinancing. The collateral value of tower assets depends on business continuity, tenant contracts, sites, power, maintenance, and the continuation of the MSA. Security cover is therefore the last line of defence, while the central credit basis remains contracted cash flow and refinancing access.

Investors should also avoid mechanically treating the difference between book value cover of 1.43x and market value cover of 2.06x as simple safety headroom. Market value is based on enterprise value as of September 30, 2025 and assumes going-concern value. The value of tower assets depends not only on the standalone disposal value of towers and equipment, but also on the contract with RJIL, site rights, power and maintenance arrangements, and continuity of regulatory and land-use arrangements. In other words, security cover is an important basis for creditor protection, but under stress it could deteriorate at the same time as the MSA and refinancing environment. It would be risky to conclude that, because security cover exists, there is no need to assess MSA terms or external debt maturities.

For external debtholders, what security cover protects is mainly “which assets secured debt can access ahead of unsecured debt and the parent loan.” Domestic NCDs and other pari passu secured debt share security over movable fixed assets, current and future current assets, and rights under material contracts. This reinforces the view that external senior debt is structurally senior to the parent InvIT loan. Conversely, what security cover does not protect is RJIL’s credit quality as contractual counterparty, the economic terms of the MSA, tariff revision and cost pass-through, foreign-exchange hedging, and future market access. A common investor mistake is to treat collateral cover as a substitute for cash-flow stability itself. Security is protection when cash flow deteriorates; it is not proof that cash flow will not deteriorate.

In Summit Digitel’s case, the security package also includes “material documents under which the borrower is entitled to any rights,” but this should not be overvalued as strong legal protection without reviewing the full MSA terms. The inclusion of contractual rights in the security package is separate from the question of which rights can be enforced, how quickly they can be enforced, and how termination or step-in would work if payment delays occur. Before investing in individual bonds, investors need to review the debenture trust deed, security documents, intercreditor terms, and the MSA’s provisions on assignment, security creation, termination, and payment delays.

6. Capital Structure, Liquidity and Funding

Total borrowings at FY2026-end were Rs 562,568 million, a slight increase from Rs 557,894 million at FY2025-end. Within this, non-current borrowings were Rs 527,978 million and current borrowings were Rs 34,590 million. The increase on the short-term side keeps NCD maturities and refinancing management after 2026 as important monitoring items. Cash and cash equivalents were only Rs 6,649 million, not sufficient to cover short-term borrowings on a standalone basis.

Liquidity needs to be assessed not only by cash on hand, but also by operating cash flow, access to the domestic NCD and bank markets, security headroom, and payment restrictions on the parent loan. FY2026 operating cash flow was Rs 50,768 million. In financing activities, proceeds from long-term borrowings of Rs 35,247 million were broadly matched by repayment of long-term borrowings of Rs 34,943 million. This indicates that the company is effectively maintaining its debt structure through recurring refinancing.

During FY2026, the company issued Rs 7,000 million of NCDs on January 30, 2026. The proceeds were fully utilised during the same quarter, with no deviation in use of proceeds disclosed. After FY2026-end, the notes to the financial results state that the company issued Rs 19,000 million of NCDs in April 2026 at 7.86%, listed on the NSE. This is a positive sign of continuing refinancing access, but it does not guarantee successful refinancing of all future maturities.

For the USD 2031 notes, the FY2026 financial results alone do not confirm the latest market price, yield, investor holdings, or whether all covenant amendments or terms remain unchanged. Existing materials show that the company originally had USD 500 million of 2.875% Senior Secured Notes due 2031, with USD 472.63 million outstanding as of FY2025. Foreign-currency bond investors need to separately assess the structure of repaying foreign-currency debt from Indian rupee cash flow, hedging, liquidity in the foreign-currency bond market, international ratings, and Indian capital regulations, while looking at the same issuer credit.

The unconfirmed items for the USD 2031 notes are broader than for the domestic NCDs. For domestic NCDs, the NSE-facing security cover, NCD outstanding amounts, use of proceeds, and domestic ratings can be confirmed relatively directly. For the USD notes, investment judgement also requires the current outstanding amount, any buybacks or amendments, security release conditions, mark-to-market value and re-hedging costs for hedges, the US dollar interest-rate environment, the latest international rating views, withholding tax, and remittance regulations. The FY2026 financial results are useful for confirming the issuer’s standalone funding profile and the broad framework for secured debt, but they are not sufficient for an individual investment decision on the USD notes. Investors holding or considering the foreign-currency bonds should separately review SGX documents, the latest rating materials, bond prices, hedge disclosures, and issuer notices.

Domestic NCD investors and USD note investors look at the same issuer, but their order of verification differs. Domestic NCD investors first look at NSE disclosures, CRISIL ratings, ISIN-by-ISIN NCD details, security cover, use of proceeds, and refinancing terms in domestic interest rates. USD note investors, while relying on the same SDIL business cash flow, need to assess how foreign-currency debt is serviced from Indian rupee revenue, how far and how effectively currency hedging runs, where higher hedging costs would appear, and how Indian domestic security, remittance, and withholding tax would affect recoveries. Domestic AAA ratings are important for understanding the domestic bond credit hierarchy, but pricing of the USD notes is also affected by international ratings, the India sovereign ceiling, US dollar rates, liquidity, and comparison with peer Asian infrastructure bonds. This report has not confirmed these market data points, so the apparent stability of the domestic NCDs should not be carried over directly into an investment view on the USD notes.

7. Rating Agency View

The main confirmed rating material is CRISIL’s rating rationale dated October 16, 2025. In that report, CRISIL reaffirmed the company’s bank facilities and NCDs at CRISIL AAA/Stable. The key rating supports are the strong business linkage with RJIL, the company’s strategic importance to RJIL, cash-flow visibility under the long-term MSA, headroom in DSCR for external debt, and the subordination of the parent InvIT loan. Constraints include revenue and counterparty risks relating to external tenants and the limited number of operators in the Indian telecom industry.

The FY2026 results do not materially contradict CRISIL’s view. Operating revenue increased modestly, operating margin was maintained at 39%, and security cover of more than 100% was confirmed for the NCDs. At the same time, the company-disclosed DSCR / ISCR of 0.88x, the expansion of negative net worth, and the increase in short-term liabilities cannot be read comfortably without assuming parent loan subordination and refinancing access. The appropriate reading is not that there is no issue because the rating is high, but that the conditions supporting the high rating are the RJIL linkage, external debt DSCR, refinancing, and parent loan subordination.

As of the preparation date of this report, new primary rating materials from CRISIL / Fitch / S&P / Moody's for 2026 onward have not been confirmed. The 2021 SGX offering memorandum confirms that the USD notes had international ratings from S&P and Fitch at issuance, but that is an old issuance document. Foreign-currency bond investors need to separately confirm the latest international ratings, outlooks, and downgrade / upgrade triggers.

8. Credit Positioning

For Indian domestic NCD investors, Summit Digitel is a highly rated, secured digital infrastructure credit. However, even within the same domestic AAA category, the source of credit quality differs from government-related issuers, policy financial institutions, and public sector banks. SDIL’s credit is supported not by government support, but by strategic importance to RJIL, contracted cash flow, secured external debt, refinancing market access, and parent loan subordination.

Compared with peers, the risk profile differs from a multi-tenant tower company such as Indus Towers. Summit Digitel is weaker in tenancy diversification, but gains revenue visibility from the long-term MSA with RJIL and the depth of its integration into RJIL’s network. This is a credit that takes anchor-tenant strategic importance in exchange for weaker diversification. Investors should therefore view RJIL concentration not only as a simple weakness, but also as a source of contract visibility.

For foreign-currency bonds, the credit should not be assessed in the same way as domestic NCDs. The USD 2031 notes are exposed not only to issuer credit, but also to foreign-exchange hedging, Indian capital regulations, withholding tax, international ratings, the US dollar interest-rate environment, liquidity, and current price / spread. This report has not obtained market data, and therefore does not judge relative value or investment merit. For domestic NCDs, security cover and domestic ratings are central. For USD notes, market price and the required yield of international investors become additional decision factors.

9. Key Credit Strengths and Constraints

Summit Digitel’s first strength is contracted cash flow under the long-term MSA with RJIL. In FY2026, operating revenue increased modestly and operating margin was maintained at 39%. The towers are embedded in RJIL’s network operations, and revenue visibility is high as long as their strategic importance to RJIL is maintained.

The second strength is protection for secured external debt. The security cover certificate at end-March 2026 confirmed security cover of more than 100% for the NCDs, with cover of 1.43x on a book-value basis and 2.06x on a market-value basis. This is an important confirmation point for external creditors.

The third strength is the subordination of the parent InvIT loan. The parent loan is large and is the main cause of accounting losses and negative net worth, but it is not repaid pari passu with senior debt. As long as this structure is maintained, total borrowings and accounting losses should not be read directly as default risk for senior external debt.

The first constraint is RJIL concentration. The FY2026 financial results again show that substantially all revenue is generated from a single customer. A decline in RJIL’s credit quality, a change in network strategy, amendment of MSA terms, or a decline in the importance of Summit Digitel’s assets could directly affect SDIL’s credit quality.

The second constraint is refinancing dependence and thin short-term liquidity. Cash at FY2026-end was Rs 6,649 million, small relative to current liabilities of Rs 104,702 million. The company has a structure in which it continues to refinance through operating cash flow and market access, and deterioration in the domestic bond market, bank market, or foreign-currency bond market needs to be monitored.

The third constraint is accounting negative net worth and the size of parent loan interest. Even with parent loan subordination, total equity at FY2026-end was Rs -201,333 million, leaving a thin standalone capital structure. If the parent InvIT’s distribution policy, treatment of parent loan interest, or intra-group cash movements change, the view of senior creditor protection could also change.

The fourth constraint is that the details of the MSA and cost pass-through cannot be fully confirmed from public materials alone. The 39% operating margin in FY2026 is a positive sign that cost recovery is functioning in practice. However, the extent, timing, and customer allocation of pass-through for power costs, fuel costs, site rentals, maintenance expenses, taxes, and inflation depend on the MSA and individual contract terms. For investors, it is important not only to confirm current margin maintenance, but also to understand where recovery lags may appear under cost shocks, what rights exist in the event of payment delays, and under what conditions contract termination or renegotiation may occur. Because this remains unconfirmed, additional verification of the legal strength of contracted cash flow is still needed even if Summit Digitel is viewed as a stable-income credit.

The unconfirmed elements of the RJIL MSA affect both stability and concentration risk. On the stability side, a long-term contract, the importance of the tower assets to RJIL, and recurring revenue from a single customer increase cash-flow visibility. On the concentration-risk side, the same facts increase sensitivity to RJIL’s credit quality, payment behaviour, network strategy, and changes in contract terms. Because third-party tenant details are not sufficiently disclosed, it cannot currently be confirmed how far diversification has progressed in offsetting RJIL dependence. The maintenance of operating margin in FY2026 is reassuring, but it is not evidence of diversification improvement through additional third-party tenancies. Future updates therefore need to track tower count, tenancy count, tenancy ratio, third-party revenue, major non-RJIL customers, and delays in energy recovery as a set.

This unconfirmed area is directly relevant to investor risk management. If MSA cost pass-through is sufficiently strong, increases in power costs and rentals are less likely to materially damage margins. Conversely, if there are recovery lags or caps, inflation and higher fuel prices could temporarily pressure working capital and EBITDA. If rights in the event of payment delays are weak, concentration on a single customer becomes a liquidity risk. If termination compensation or transition periods are weak, security value would also be more vulnerable to decline. For this reason, the MSA details are not merely a legal due diligence item, but a central verification point linking DSCR, refinancing, security value, and rating sensitivity.

10. Downside Scenarios and Monitoring Triggers

The most important downside scenario is a weakening of the RJIL linkage. If RJIL is downgraded, changes its network strategy, renegotiates MSA terms, or reduces the importance of Summit Digitel’s assets, revenue visibility, ratings, and refinancing access could deteriorate at the same time. Single-customer dependence was reconfirmed in the FY2026 results, and until diversification progresses this risk remains central to the credit assessment.

The second scenario is deterioration in refinancing markets. During FY2026, the company both raised and repaid long-term borrowings, and it also issued Rs 19,000 million of NCDs after FY2026-end. This supports the view that market access has been maintained, but if rising rates, weaker domestic bond demand, changes in bank credit appetite, and closure of the foreign-currency bond market occur together, refinancing costs would rise and DSCR and free cash flow would come under pressure.

The third scenario is deterioration in the terms of the parent InvIT loan and intra-group cash movements. The subordination of the parent loan is an important premise for current senior creditor protection. If the payment terms, unpaid interest, distribution policy, group restructuring, or funding needs for additional acquisitions change in the future, the view of cash flow and security headroom left for external creditors could change.

The fourth scenario is weakening of the cost-recovery mechanism. FY2026 operating margin was maintained, but if power costs, fuel costs, site rentals, maintenance costs, renewable energy investment, or contractual recovery lags worsen, the stability of the tower business would weaken. In particular, the detailed tariff revision and cost pass-through terms of the MSA remain unconfirmed and should be reviewed before any individual investment.

11. Credit View and Monitoring Focus

Summit Digitel’s credit quality appears consistent with a highly rated infrastructure credit for domestic NCD and bank debt, but its stability is strongly conditional on the RJIL linkage, refinancing of external debt, security cover, and subordination of the parent InvIT loan. The FY2026 results show modest growth in operating revenue, maintenance of a 39% operating margin, narrowing losses, and more than 100% security cover for NCDs, and do not materially undermine the existing contracted cash-flow view. The direction of credit quality has not changed significantly at this point, but given single-customer dependence, a low current ratio, negative net worth, and the size of parent loan interest, deterioration in the RJIL linkage or refinancing environment could cause a rapid change.

The key to reading this issuer is not to treat total borrowings as a single number. The parent InvIT loan, domestic NCDs, other external senior secured debt, and USD 2031 notes differ in ranking, security, currency, investor base, and risk factors. The parent loan worsens accounting profit and loss and negative net worth, but is not pari passu with senior debt. Security cover has been confirmed for the domestic NCDs, but it does not guarantee the MSA or refinancing success. The USD notes rely on the same issuer credit, but require additional analysis of foreign-exchange hedging, international ratings, market prices, and regulatory risk.

The current monitoring focus should be, first, RJIL’s credit quality and maintenance of the MSA; second, refinancing terms for NCDs and bank borrowings from FY2027 onward; third, changes in security cover and pari passu secured debt; fourth, the payment terms, unpaid interest, and distribution policy related to the parent InvIT loan; and fifth, growth in third-party tenancies. The Rs 19,000 million NCD issuance after FY2026-end shows continued capital-market access, but future interest rates and investor demand need to be monitored.

12. Short Summary & Conclusion

Summit Digitel is an Indian tower SPV under Altius Telecom Infrastructure Trust, and contracted cash flow under the long-term MSA with RJIL is the core of its credit quality. The FY2026 results showed modest growth in operating revenue, maintenance of a 39% operating margin, and narrower losses, and do not materially change the existing view of the company as a highly rated infrastructure credit. However, customer concentration, refinancing dependence, negative net worth, and the size of the parent InvIT loan remain constraints. Domestic NCDs, external senior debt, USD 2031 notes, and the parent loan need to be analysed separately.

13. Sources

Main confirmed sources

• Summit Digitel Infrastructure Limited, "Financial Results of the Company for the quarter (Unaudited) and year (Audited) ended March 31, 2026", May 4, 2026
  https://www.altiusinfra.com/media/assets/99c7c85d-597e-4e7a-98ea-8aa9d2ecfb38-SDIL_Outcome_BM.pdf
• Summit Digitel Infrastructure Limited, "Security Cover Certificate as at March 31, 2026", May 4, 2026
  https://www.altiusinfra.com/media/assets/952a0dcb-ce0f-4f48-ad07-19a2d340d61c-SDIL_Security_Cover_Certificate.pdf
• Summit Digitel Infrastructure Limited, "Statement on Utilisation of issue proceeds of Non-convertible debentures for the quarter ended March 31, 2026", May 4, 2026
  https://www.altiusinfra.com/media/assets/e247ede8-9be6-48b7-ae9b-3a3eeffc90b4-SDIL_Statement_of_utilisation_of_funds.pdf
• Summit Digitel Infrastructure Limited, "Disclosure of related party transactions for the half year ended March 31, 2026", May 4, 2026
  https://www.altiusinfra.com/media/assets/ceba9126-c084-4715-9879-bc60e6794cb7-SDIL_Disclosure_of_RPT.pdf
• Summit Digitel Infrastructure Limited, "Declaration of unmodified opinion for the financial year March 31, 2026", May 4, 2026
  https://www.altiusinfra.com/media/assets/5e1416f6-f24e-48cd-ac54-cb18701f5789-SDIL_Disclosure_of_unmodified_opinion.pdf
• Summit Digitel Infrastructure Limited, Annual Secretarial Compliance Report for the financial year ended March 31, 2026, posted May 26, 2026
  https://www.altiusinfra.com/media/assets/18dc477a-cccb-42d4-b4fb-5abce58f8f0b-SDIL_Cover_Letter_for_ASCR_31032026_signed.pdf
• Summit Digitel Infrastructure Limited, Annual Report 2024-25, FY ended March 31, 2025
  https://altius-s3-bucket.s3.ap-south-1.amazonaws.com/assets/90650152-823b-4276-a85f-c74f9d82534c-SDIL_Annual%20Report_2024-25.pdf
• CRISIL Ratings, "Summit Digitel Infrastructure Limited: Rating reaffirmed at 'CRISIL AAA / Stable'", October 16, 2025
  https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/SummitDigitelInfrastructureLimited_October%2016_%202025_RR_380805.html
• SGX, Summit Digitel Infrastructure Private Limited, Final Offering Memorandum dated August 4, 2021, USD 500 million 2.875% Senior Secured Notes due 2031
  https://links.sgx.com/FileOpen/Summit%20Digitel%20-%20Final%20Offering%20Memorandum%20dated%204%20August%202021.ashx?App=Prospectus&FileID=52970
• Altius / Summit Digitel corporate announcements page, accessed June 2, 2026
  https://www.altiusinfra.com/investors/summit/announcements

Unconfirmed items and topics requiring additional research

1. Whether the FY2025-26 annual report has been published separately from the financial results. This report confirmed the Annual Secretarial Compliance Report dated May 26, 2026, but did not confirm the full FY2025-26 annual report.
2. Primary rating materials from CRISIL / Fitch / S&P / Moody's for 2026 onward. The latest confirmed primary CRISIL material is dated October 16, 2025, and the latest primary international rating materials have not been confirmed.
3. Latest values for the current price, yield, spread, liquidity, outstanding face amount, and hedging status of the USD 2031 notes.
4. Full MSA with RJIL, tariff revision provisions, termination provisions, rights in the event of payment delay, O&M contracts, and details of third-party tenancy contracts.
5. Revenue by third-party tenant, pace of tenancy additions, and latest tenancy ratio at FY2026-end.
6. Use of proceeds, refinancing target, and impact on security cover of the Rs 19,000 million NCD issued in April 2026.
7. Future interest payment and principal repayment policy for the parent InvIT loan, unpaid interest, distribution policy of the parent InvIT, and intra-group cash movements.