Indosat Ooredoo Hutchison (ISAT), a leading telecommunications giant in Indonesia, has reported a stellar financial performance for the first half of 2026, driven by robust operational growth and a significant one-off gain. The company’s net profit surged by a remarkable 85% year-over-year, compelling management to revise its full-year revenue and EBITDA guidance upward, signaling strong confidence in its future trajectory.

Strong Earnings Momentum: A Closer Look at ISAT’s H1 2026 Results

ISAT’s financial report highlights an impressive second quarter, with net profit reaching approximately IDR 2.8 trillion. This figure represents an astounding 175% year-over-year and 89% quarter-over-quarter increase, significantly boosted by a one-off gain of roughly IDR 1 trillion from the divestment of fiber assets during 2Q26. Consequently, Indosat’s total net profit for the first half of 2026 ascended to IDR 4.3 trillion, marking an 85% jump from the previous year.

To provide a clearer operational picture, excluding the impact of the fiber asset divestment, ISAT’s normalized net profit for 2Q26 stood at approximately IDR 1.8 trillion, still achieving a robust 107% year-over-year and 23% quarter-over-quarter growth. For 1H26, normalized net profit reached IDR 3.2 trillion, a solid 49% increase year-over-year, underscoring the company’s inherent operational strength.

Operational Excellence: EBITDA Growth and ARPU Expansion

Operationally, Indosat demonstrated compelling growth. Its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for 1H26 climbed to approximately IDR 14.6 trillion, representing a healthy 14% year-over-year increase. The EBITDA margin remained remarkably stable at 47.6%, a testament to efficient cost management and scalable operations.

This strong EBITDA performance was primarily fueled by continued Average Revenue Per User (ARPU) growth. In 2Q26, ARPU rose to IDR 46,000, a significant 19.5% increase year-over-year and 1.8% quarter-over-quarter. While subscriber numbers remained largely stable quarter-over-quarter at 93.4 million (a slight 2.1% decrease year-over-year and 0.1% decrease quarter-over-quarter), the expanding ARPU signifies the company’s success in driving higher value from its existing user base through enhanced services and data consumption.

Strategic Outlook: Elevated Guidance and Increased Capex for Future Growth

In a clear vote of confidence, ISAT’s management has revised its 2026 guidance upward. The company now targets revenue and EBITDA growth to be ‘close to double-digit’, an upgrade from its previous ‘mid-to-high single-digit’ projection. This optimistic outlook reflects both the strong first-half performance and anticipated continued momentum in the Indonesian telecommunications sector.

Furthermore, Indosat has significantly increased its capital expenditure (Capex) guidance for 2026, from approximately IDR 13 trillion to a substantial IDR 23 trillion. This substantial increment signals an aggressive investment strategy aimed at enhancing network infrastructure, expanding coverage, and upgrading technology to support future data demand and service innovation. Such a strategic investment push positions ISAT to further solidify its market leadership and capture greater market share in a rapidly evolving digital landscape.

Why ISAT’s Performance Matters to Investors

Indosat’s H1 2026 results paint a picture of a company firing on all cylinders. Beyond the one-off gain, the underlying operational strength, evidenced by robust EBITDA and ARPU growth, demonstrates effective strategy execution. The upward revision of guidance and a significant boost in Capex underscore management’s commitment to sustained growth and market dominance. For investors eyeing the dynamic Indonesian telecom sector, ISAT’s latest financials and forward-looking strategy present a compelling narrative of both current profitability and future potential.