EBITDA up to RUB 111.4bn but net profit near zero: what Sistema's report hides

In Q1 2026, Sistema's revenue reached RUB 303.3bn, EBITDA RUB 111.4bn, and net profit only RUB 1.6bn. EBITDA margin hit 36.7%, reflecting a strong operational result, but the low net profit points to continued pressure on the bottom line. Debt remains high: net debt rose to RUB 1,752.4bn, and net debt/EBITDA for the last twelve months stands at 5.63.

Key figures, RUB bn

What the report showed and what drives it

In Q1 2026, Sistema's revenue reached RUB 303.3bn, up 13.3% YoY compared to Q3 2024 (RUB 343.3bn). However, growth slowed: in Q4 2024 it was 12.9% (RUB 341.8bn). EBITDA for the reported period hit RUB 111.4bn, well above 2023 levels (RUB 78.8bn in Q2). Net profit was only RUB 1.6bn, sharply contrasting with EBITDA and indicating significant non-operating expenses or impairment losses.

Margins and costs

EBITDA margin in Q1 2026 was 36.7% (RUB 111.4bn EBITDA on RUB 303.3bn revenue). This is notably higher than in comparable quarters of 2023: for example, in Q2 2023 the margin was around 30.6% (RUB 74.5bn EBITDA on RUB 243.2bn revenue). Net margin was only 0.5% (RUB 1.6bn net profit on RUB 303.3bn revenue), reflecting high financial expenses and other non-operating items.

Debt, cash flow, capex

Net debt at the end of Q1 2026 stood at RUB 1,752.4bn, up RUB 328.8bn from the previous reporting date and RUB 471.2bn over the last 12 months. Net debt/EBITDA for the last twelve months (RUB 214.8bn) is 5.63, indicating high leverage. Operating cash flow for the last twelve months was RUB 117.4bn, only partially covering capex needs (in 2023, quarterly capex was around RUB 27.8bn).

Valuation and what to watch next quarter

EV/EBITDA for the last twelve months is 5.94, below the three-year average (not available in facts). However, due to capitalised development, EBITDA may overstate operating profit, so investors should watch EV/EBITDAC, which is not provided. In the next report, key items will be net profit dynamics (whether it can move away from near zero), net debt changes, and the ability to generate free cash flow after capex.

Valuation on the latest reported figures