Indosat Tbk PT: Positive earnings revisions to follow strong 2Q26, surprising neocloud economics - reiterate OW

Research evidence excerpt

Indosat Tbk PT: Positive earnings revisions to follow strong 2Q26, surprising neocloud economics - reiterate OW

J P M O R G A N Asia Pacific Equity Research

28 July 2026

Indosat Tbk PT Overweight

ISAT.JK, ISAT IJ

Positive earnings revisions to follow strong 2Q26, Price (28 Jul 26):Rp1,950

surprising neocloud economics - reiterate OW ▲Price Target (Jun-27):Rp3,200 Prior (Jun-27):Rp3,000

ISAT reported a strong 2Q26 result beat with earnings up 75% yoy and wireless

ARPU growing by 2%/20% qoq/yoy. Management upgraded their FY revenue/ ASEAN TMT

EBITDA growth guidance to “close to double-digit”, but we continue to see upside Ranjan Sharma, CFA AC

to this new guidance. New capex guidance for 5G investments (IDR10tn (65) 6882-1303

incremental capex vs. prior guidance) and AI Neocloud (US$630m) came as a ranjan.x.sharma@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited

surprise to us, but we believe these investments could be value accretive for

Steven Suntososhareholders. We adjusted our forecasts with 2027E earnings up 2-6% and raising

(622-1) 5291 8090

our Jun-27PT to IDR3,200/sh (vs. Rp3,000 prior). We reiterate OW on ISAT. steven.suntoso@jpmorgan.com

PT J.P. Morgan Sekuritas Indonesia

• Strong 2Q26 results; we continue to see upside despite guidance uplift. Sigrid Qiu

2Q26 normalized NI came in at IDR1.79tn, reflecting a 75% yoy increase and

(65) 6882-1454

exceeding our estimate by 17%. We believe the result is a strong beat as our FY sigrid.qiu@jpmorgan.com

underlying earnings are ahead of the Street. Primarily driven by better-than- J.P. Morgan Securities Singapore Private Limited

expected ARPU, top line and EBITDA posted 14% yoy growth. Wireless Ankur Rudra, CFA

ARPU grew by 2% qoq despite expectations of weaker sequential seasonality, (65) 6801-3237