Quick Note - XLSMART Telecom (EXCL IJ) (Neutral) - 1Q26 results in line

Research evidence excerpt

Quick Note - XLSMART Telecom (EXCL IJ) (Neutral) - 1Q26 results in line

Nomura Securities Malaysia Sdn Bhd

XLSMART Telecom EXCL.JK EXCL IJ 12 May 2026

EQUITY: TELECOMS

Rating1Q26 results in line Remains Neutral

Target price IDR 3,300 RemainsQuick Note

Closing priceEXCL’s 1Q26 results were broadly in line with our expectations at the operating level. The 12 May 2026 IDR 3,100

company reported a net loss of IDR717bn (-60.7% q-q; -286.4% y-y), which was largely

anticipated given the ongoing integration phase following the completion of the merger in

mid-April 2025. Management indicated that meaningful merger synergies are expected to Research Analysts

materialize starting from 2Q27E, approximately eight quarters post-merger. Indonesia Research Team

1Q26 marked the second consecutive quarter of operational improvement, underpinned Heng Siong Kong - NSM

by resilient performance of the Data/VAS segment, which remained the key revenue hengsiong.kong@nomura.com

growth driver at IDR10.9tn (+0.5% q-q; +38% y-y). The improvement in data yield (+3.9% +603 2027 6894

q-q; +1.5% y-y) more than offset the intentional contraction in the subscriber base, with

Onshore experttotal mobile subscribers declining 5% q-q to 69.4mn. This in our view reflects

management’s disciplined quality-over-quantity strategy, including the removal of freebies, Erwin Wijaya (erwin.wijaya@verdhana.id)

enforcement of a minimum starter pack price of IDR5,000–10,000, and the cleanup of

Theonshoreexperts,whoareinactive or sub-three-month SIM cards across XL, Axis, and Smartfren brands.

employedbyPTVerdhanaSekuritas

On the regulatory front, the mandatory biometric SIM registration requirement, effective Indonesia(“Verdhana”)andarenot

July 2026, could introduce near-term uncertainty around subscriber headcount.