Telkom Indonesia stock: Q3 revenue grows as guidance stays unchanged

Telkom Indonesia reported stronger revenue and normalized profit for the first nine months of 2026, but lower reported earnings and a weaker margin kept the operating picture mixed. In a transcript published on November 3, Investing.com reported that management described revenue as being at the high end of its full-year range.

Revenue Growth Across Core Segments

Consolidated revenue reached 113.5 trillion Indonesian rupiah, up 3.5 percent from the same period a year earlier. Telkomsel revenue increased 1.8 percent to 82.9 trillion rupiah, supported by 7.7 percent growth in data revenue. The mobile business remained the main growth engine as the group worked to offset pressure in legacy and fixed-broadband activities.

Management also highlighted the contribution of newer infrastructure and enterprise operations. Data centers and related infrastructure benefited from demand linked to artificial-intelligence workloads, while the company continued to streamline its portfolio and reorganize enterprise activities. The group said it plans to shift the enterprise business into the Digiserve operating platform in November, with efficiency gains dependent on execution rather than on an immediate increase in consolidated revenue.

Profit Quality Remains Mixed

Reported net income declined 4.3 percent year over year to 14.4 trillion rupiah. After adjusting for one-off effects, normalized net income rose 3.9 percent to 16.5 trillion rupiah. Management linked the difference to transformation advisory costs, increased depreciation following an accounting policy change and mark-to-market losses on investments.

EBITDA increased 2.0 percent to 55.5 trillion rupiah, but the EBITDA margin was 48.9 percent, below the full-year target of more than 50 percent. Operating cash flow fell 4.6 percent to 62.3 trillion rupiah, while free cash flow to equity reached 39.9 trillion rupiah. Capital spending totaled 15.7 trillion rupiah, equivalent to 13.8 percent of revenue.

Telkomsel also faced seasonal and competitive pressure in the third quarter. Quarterly revenue fell 2.7 percent to 27.3 trillion rupiah, EBITDA declined 5.3 percent to 12.3 trillion rupiah and net income stood at 4.2 trillion rupiah. Management expects pricing discipline, year-end demand and network monetization to support a sequential improvement in the fourth quarter.

Targets And Capital Allocation

Telkom Indonesia left its 2026 guidance unchanged. The company continues to target revenue growth of 1 percent to 3 percent, an EBITDA margin above 50 percent and a capital-to-revenue ratio of 17 percent to 19 percent. Management expects fourth-quarter seasonality and the Telkomsel market-repair program to help margins, although it cautioned that capital spending will likely rise in 2027 and 2028 as the group expands data centers, subsea cables and network capacity.

Management also pointed to continued buybacks and elevated dividends as part of its shareholder-return policy. Future payout decisions will depend increasingly on capital requirements for network modernization and growth projects. For investors, the central question is whether stronger data demand and infrastructure growth can offset transformation costs, consumer caution and sustained mobile-price competition.

Telkom Indonesia stock traded at 9.20 euros on Lang & Schwarz at 09:14 CET on Wednesday, November 4, 2026. Investors can follow the real-time quote of Telkom Indonesia stock.

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