EBITDA up to RUB 111.4bn but net profit near zero: what the report hides

In Q1 2026, Sistema's revenue reached RUB 303.3bn, EBITDA RUB 111.4bn, implying a 36.7% margin. Net profit was only RUB 1.6bn (0.5% margin). Debt increased by RUB 328.8bn over the quarter and by RUB 471.2bn over 12 months.

Key figures, RUB bn

What the report showed and what's behind it

In Q1 2026, Sistema's revenue stood at RUB 303.3bn. This is notably lower than in Q4 2024 (RUB 341.8bn), but direct comparison is not valid as quarters differ. Annual dynamics are visible from 2024 data: Q3 grew 13.3%, Q4 12.9%.

Margins and costs

EBITDA for the reported quarter reached RUB 111.4bn, implying a 36.7% margin. That is high, but net profit was only RUB 1.6bn (0.5% margin), indicating significant non-operating expenses or impairments. For comparison, in Q4 2024 EBITDA was RUB 80.9bn and net profit was minus RUB 4.4bn.

Debt, cash flow, capex

Net debt at the latest balance sheet date was RUB 1,209,135 million, up RUB 328.8bn over the quarter and RUB 471.2bn over 12 months. Net debt to EBITDA for the trailing twelve months is 5.63. Operating cash flow for the trailing twelve months is RUB 117.4bn, well below the debt level.

Valuation and what to watch next quarter

EV/EBITDA for the trailing twelve months is 5.94. Market cap is RUB 67,192.95 million, which is tiny relative to EBITDA. Return on equity is negative: -19.4%. In the next report, it is crucial to see whether the company can convert EBITDA into net profit and stabilize debt.

Valuation on the latest reported figures