IDGC Center: Revenue up 13.3%, but EBITDA margin compresses to 24.3%

On August 17, 2026, IDGC Center reported results for the first quarter of 2026. Revenue grew 13.3% year-on-year to RUB 42,560.6 million, EBITDA rose only 2.5%, and net profit jumped 21.8%. The review shows that revenue growth is not converting into margin, but the company generates strong operating cash flow and reduces debt.

Key takeaways

— Revenue +13.3% YoY, but EBITDA margin fell from 26.8% to 24.3%

— Net profit +21.8% YoY to RUB 3,982.2 million, while operating profit rose only 3.5%

— Operating cash flow up 16.1% YoY to RUB 9,939.6 million, covering capex with a surplus

— Net debt down RUB 2.8 billion in the quarter and RUB 2.7 billion over 12 months, to RUB 33,715.1 million

— EV/EBITDA LTM 1.64 — below the 3-year average (2.12), P/E LTM 2.12

— Dividend yield 10.6% over 12 months, but no payments — model estimates next dividend at RUB 0.0 per share

Key figures, RUB bn

Revenue +13.3% YoY, but EBITDA margin fell from 26.8% to 24.3%

In Q1 2026, IDGC Center's revenue reached RUB 42,560.6 million, up 13.3% year-on-year. This continues an accelerating trend: Q4 2025 growth was 13.0%, Q3 11.3%, Q2 11.5%.

However, EBITDA rose only 2.5% to RUB 10,322.2 million, and the EBITDA margin compressed from 26.8% to 24.3%. This means operating expenses are growing faster than revenue, and the company cannot fully convert top-line growth into profit.

Net profit +21.8% YoY to RUB 3,982.2 million, while operating profit rose only 3.5%

Net profit for Q1 2026 was RUB 3,982.2 million versus RUB 3,269.2 million a year earlier. The 21.8% growth significantly outpaces operating profit, which rose only 3.5% to RUB 6,820.7 million.

The gap is likely due to lower financial expenses or higher other income, but this is not disclosed in the report. In any case, net margin increased from 8.7% to 9.4%.

Operating cash flow up 16.1% YoY to RUB 9,939.6 million, covering capex with a surplus

Operating cash flow in Q1 2026 was RUB 9,939.6 million, up 16.1% year-on-year (RUB 8,559.9 million). Capital expenditures rose 25.4% to RUB 7,333.4 million, but still remained below operating flow.

Free cash flow (OCF minus capex) was about RUB 2,606.2 million, allowing the company to finance investments without taking on debt. Over the last 12 months, operating flow reached RUB 29,500.0 million, and capex for the same period was about RUB 27,711.3 million (sum of quarterly values).

Net debt down RUB 2.8 billion in the quarter and RUB 2.7 billion over 12 months, to RUB 33,715.1 million

At the end of Q1 2026, net debt stood at RUB 33,715.1 million, down RUB 2.8 billion from the previous reporting date and RUB 2.7 billion lower than a year ago. The debt reduction was made possible by strong operating flow and moderate capex.

The net debt to EBITDA ratio for the last 12 months is 0.96 – a moderate level, although it cannot be compared with the previous period as the earlier value is not disclosed.

EV/EBITDA LTM 1.64 — below the 3-year average (2.12), P/E LTM 2.12

The company's market capitalization is RUB 26,132.9 million, which, with EBITDA of RUB 38,126.7 million over the last 12 months, gives an EV/EBITDA of 1.64. This is significantly below the three-year average of 2.12.

P/E LTM is 2.12, reflecting a low valuation of earnings. At the same time, return on equity (ROE) is 21.2%, indicating high efficiency in using capital.

Dividend yield 10.6% over 12 months, but no payments — model estimates next dividend at RUB 0.0 per share

Over the last 12 months, the company has not paid dividends, but the dividend yield calculated based on the model is 10.6%. This is higher than the level we consider fair for this name – 10.5%.

Our model estimates the next dividend at RUB 0.0 per share, implying a payout ratio of 0.4 of profit. If payments do not resume, shareholders will not receive the expected income despite the formally high yield.

Valuation on the latest reported figures

Bottom line

IDGC Center shows confident revenue growth, which, however, does not translate into margin: EBITDA margin decreased by 2.5 p.p. The strong side remains operating cash flow, which covers capex with a surplus and allows debt reduction. Net profit grows faster than operating profit, but the reasons are not disclosed. The stock valuation remains low – EV/EBITDA 1.64 versus the three-year average of 2.12. The main question for a holder is whether the company can restore margin and resume dividend payments.