New Delhi, June 5 -- Ascend Telecom Infrastructure Pvt Ltd posted a drop in its revenue and profit for the year through March 2026 but its private equity owner, the BlackRock Inc.-owned Global Infrastructure Partners (GIP), still managed to generate some liquidity from the telecom tower operator that joined its portfolio eight years ago.

Ascend Telecom, which is reportedly preparing for a potential public listing, reported a 4.6% decline in its consolidated revenue from operations for 2025-26 to Rs 2,391 crore, from Rs 2,505 crore the previous year, its latest financial numbers show.

Set up in 2002, Ascend provides passive telecom infrastructure services to telecom operators on a shared, multi-tenancy build-own-lease model. The company joined GIP's portfolio when the American PE firm bought the infrastructure fund business of IDFC Alternatives in 2018.

The decline in Ascend's topline during FY26 came despite a significant increase in its asset base over the past couple of years. Its tower portfolio now spans over 19,000 telecom tower sites and more than 6,000 small cell sites, making it India's fourth-largest independent passive infrastructure provider.

This scale owes significantly to the acquisition and subsequent amalgamation of Tower Vision India Pvt Ltd in 2023 for approximately Rs 3,000 crore, a deal that was closed in January 2025.

Profitability

Ascend's net profit for 2025-26 stood at Rs 99.9 crore, sharply lower than the Rs 537 crore reported in FY25 - a figure that was substantially aided by a one-time deferred tax credit of Rs 159 crore that did not recur.

Profit before interest, tax, depreciation and amortisation came in at Rs 1,289 crore for FY26, translating to an operating margin of approximately 54% of revenue from operations. This was substantially below the figure for the previous financial year that stood at Rs 1,555 crore

Finance costs remain a substantial drag at Rs crore for the year, reflecting the company's leveraged capital structure following the Tower Vision acquisition.

The company does have to contend with some concentration risk around a single large customer-Vodafone Idea-that accounts for a significant share of revenue and outstanding trade receivables.

Total outstanding trade receivables from Vodafone Idea stood at Rs 182 crore as of March 31, 2026. Ascend has made a provision of Rs 25 crore against these dues and has chosen not to recognise revenue equalisation reserves on account of the straight-lining of lease rentals given Vodafone Idea's precarious financial position, though its management maintains that the carrying amount of receivables and related property, plant and equipment will be recovered in the normal course of business.

GIP's harvest

Ascend's numbers also reflect a significant capital return exercise. During FY26, the company bought back shares worth Rs 400 crore and paid a total dividend of Rs 120 crore in four equal tranches. This essentially means that GIP, which owns a 100% stake in Ascend, harvested Rs 520 crore ($54.3 million at current exchange rates) from the company during the year. This came on top of the Rs 295 crore dividend that Ascend paid in dividends in FY25.

These numbers come as GIP, which was acquired by BlackRock in a $12.5 billion deal, is reportedly in early conversations with bankers about a potential IPO for Ascend at a targeted valuation of around Rs 5,000 crore.

Separately, GIP has also been gauging interest from potential strategic buyers including Macquarie, KKR and Stonepeak for a stake sale in the asset, suggesting a dual-track approach to monetisation, media reports said.

The proposed listing, if it proceeds, would take public one of the few independent tower companies in India, a market currently dominated by listed players such as Indus Towers.

Published by HT Digital Content Services with permission from VC Circle.