Telkom Indonesia: H1 profit rose to IDR 14.2tn, but revenue grew only 3.9%

On 31 July PT Telekomunikasi Indonesia Tbk. released its unaudited H1 2026 financial statements. Revenue for the six months came in at IDR 75,878bn versus IDR 73,004bn a year earlier, net profit at IDR 14,206bn, and profit attributable to owners of the parent at IDR 10,623bn. Operating profit rose to IDR 20,133bn, while the EBITDA margin for the half-year stood at 49.2%. At the current price the share looks attractive: EV/EBITDA LTM is 2.37, P/E LTM is 9.12, trailing twelve-month dividend yield is 8.55%, and net debt is covered by LTM EBITDA in less than 0.1 years.

Key takeaways

— H1 revenue rose 3.9% to IDR 75,878bn, but quarterly dynamics are weaker: Q1 2026 revenue was IDR 37,189bn

— Operating profit added 4.4% to IDR 20,133bn, while the H1 EBITDA margin reached 49.2%

— H1 net profit grew 4.3% to IDR 14,206bn, of which IDR 10,623bn was attributable to the parent

— Operating cash flow for H1 was IDR 34,862bn, but capex on fixed and intangible assets reached IDR 11,368bn

— Net debt at end-June 2026 stood at IDR 40,683bn, with net debt / LTM EBITDA at 0.0

— Trailing twelve-month dividend yield is 8.55%, and IDR 28,565bn was directed to dividends in H1

— The share trades at EV/EBITDA LTM of 2.37 and P/E LTM of 9.12, with an EBITDA margin of 49.2% and ROE of 15.5%

Attractiveness

Key figures, IDR bn

H1 revenue rose 3.9% to IDR 75,878bn, but quarterly dynamics are weaker: Q1 2026 revenue was IDR 37,189bn

H1 2026 revenue came in at IDR 75,878bn, up 3.9% from the same period in 2025. The growth was driven by mobile and fixed broadband segments, although a detailed segment breakdown is not disclosed in the report.

Q1 2026 revenue was IDR 37,189bn, implying Q2 revenue of approximately IDR 38,689bn. This suggests an acceleration from Q1, but without seasonal adjustment it is premature to draw trend conclusions.

Revenue growth remains moderate amid mobile market saturation and competition. The company did not provide revenue guidance for 2026, so further dynamics will depend on tariff policy and digital service development.

Operating profit added 4.4% to IDR 20,133bn, while the H1 EBITDA margin reached 49.2%

H1 2026 operating profit rose 4.4% to IDR 20,133bn. The EBITDA margin for the same period was 49.2%, reflecting high business efficiency and cost control.

Key expense lines showed mixed dynamics: operations, maintenance and telecommunications services rose to IDR 21,474bn from IDR 19,760bn, depreciation and amortisation to IDR 17,203bn from IDR 16,818bn, while employee expenses declined to IDR 7,721bn from IDR 8,075bn. This helped maintain a high operating margin.

Operating profit growth lags revenue growth due to faster increases in operating costs and depreciation. Nevertheless, the EBITDA margin remains among the highest in the telecommunications sector.

H1 net profit grew 4.3% to IDR 14,206bn, of which IDR 10,623bn was attributable to the parent

H1 2026 net profit was IDR 14,206bn, up 4.3% from IDR 13,624bn a year earlier. Profit attributable to owners of the parent reached IDR 10,623bn, while non-controlling interests accounted for IDR 3,583bn.

Net profit growth was supported by lower employee expenses and a swing in foreign exchange results to a gain of IDR 282bn from IDR 31bn a year earlier. In addition, finance costs declined to IDR 2,079bn from IDR 2,647bn.

The net margin for the half-year was 14.0%, in line with last year. The company maintains stable profitability despite moderate revenue growth.

Operating cash flow for H1 was IDR 34,862bn, but capex on fixed and intangible assets reached IDR 11,368bn

Operating cash flow for H1 2026 was IDR 34,862bn, up 7.0% from IDR 32,573bn a year earlier. This provided a solid base for funding investments and dividends.

Capex on fixed and intangible assets reached IDR 11,368bn (IDR 9,879bn on fixed assets and IDR 1,489bn on intangibles), down 1.5% from a year earlier. Free cash flow therefore amounted to about IDR 23,494bn, fully covering dividend payments.

The company also allocated IDR 4,338bn to lease repayments and IDR 1,480bn to share buybacks. Despite significant investments, the cash position strengthened: cash and cash equivalents rose to IDR 54,579bn from IDR 34,228bn at the beginning of the year.

Net debt at end-June 2026 stood at IDR 40,683bn, with net debt / LTM EBITDA at 0.0

Net debt as of 30 June 2026 was IDR 40,683bn. The net debt / LTM EBITDA ratio stands at 0.0, indicating extremely low leverage. For comparison, LTM EBITDA is IDR 109,639,078.8mn, many times the debt.

During the half-year the company raised IDR 34,080bn in new borrowings and repaid IDR 27,964bn, resulting in a net inflow of about IDR 6,116bn. This explains the increase in short-term bank loans to IDR 8,816bn from IDR 6,929bn at end-2025.

Finance costs declined to IDR 2,079bn from IDR 2,647bn a year earlier, reflecting both lower borrowing costs and a change in debt structure. Low leverage gives the company significant financial flexibility.

Trailing twelve-month dividend yield is 8.55%, and IDR 28,565bn was directed to dividends in H1

The trailing twelve-month dividend yield is 8.55%, significantly above the yield on Indonesian government bonds. In H1 2026 the company paid dividends totalling IDR 28,565bn, of which IDR 21,999bn went to the parent and IDR 6,566bn to non-controlling interests.

Our estimate for the 2026 dividend assumes the payout ratio remains at last year's level. With LTM net profit of IDR 28,437,000mn and the current share price, the dividend yield could remain near 8.5% if the company does not change its dividend policy.

The main risk to the dividend is a possible increase in capex or large acquisitions that could require a revision of payouts. However, current free cash flow of IDR 23,494bn in the half-year comfortably covers dividend obligations.

The share trades at EV/EBITDA LTM of 2.37 and P/E LTM of 9.12, with an EBITDA margin of 49.2% and ROE of 15.5%

The share currently trades at EV/EBITDA LTM of 2.37 and P/E LTM of 9.12. For comparison, the historical averages of these multiples over the past three years are not disclosed in the facts, so we cannot state whether current levels are above or below their historical values.

Return on equity (ROE) is 15.5%, confirming efficient use of capital. Market capitalisation stands at IDR 259,267,830.646mn, and net debt at IDR 40,683bn, giving an EV of about IDR 299,951bn.

Such low multiples may reflect either the market undervaluing a stable, high-margin business or risks related to regulation and competition. A dividend yield of 8.55% adds to the share's appeal for income-oriented investors.

Valuation on the latest reported figures

Bottom line

Telkom Indonesia reported H1 2026 results with revenue up 3.9% and net profit up 4.3%. The company maintains a high EBITDA margin (49.2%) and extremely low leverage (net debt / LTM EBITDA = 0.0). A dividend yield of 8.55% and multiples of EV/EBITDA 2.37 and P/E 9.12 make the share attractive for income-oriented investors. The key question for a holder is whether the company can accelerate revenue growth to justify the current valuation. Verdict: the share looks attractive.