Three Associates Went the Wrong Way at Once, and the Stock Didn't Notice
PT Indoritel Makmur Internasional Tbk's H1 2026 numbers tell a different story than the Q1 2026 post did just three months ago. Back then, Fast Food Indonesia Tbk (KFC's Indonesian franchisee) had swung to a small quarterly profit — "the clearest sign yet of a real same-store recovery," that post called it. That recovery didn't survive Q2: cumulative six-month profit attributable to owners for Fast Food Indonesia came in at negative Rp110.0 billion, meaning the business lost roughly Rp123 billion in the second quarter alone, reversing Q1's Rp13.3 billion gain and then some. PT Nippon Indosari Corpindo Tbk ("Sari Roti") fared even worse in relative terms — H1 2026 profit attributable to owners of just Rp4.0 billion, against a full FY2025 profit of Rp258.5 billion, effectively a wipeout for the two associates that aren't Indomaret.
Only PT Indomarco Prismatama (Indomaret) held up, with H1 2026 profit of Rp943.5 billion — about 32.0% of its FY2025 full-year profit, a more normal first-half run-rate than Q1 alone showed. But Indomaret alone couldn't offset the other two: the Company's combined share of associate profit fell 23.4% YoY to Rp340.6 billion, operating income ("Profit from Operations") fell 30.5% to Rp449.7 billion, and net income attributable to owners fell 26.3% to Rp398.6 billion. FiberStar, the one holding fully consolidated onto the Company's own books, kept growing but decelerated — revenue rose 8.8% YoY to Rp871.8 billion for the half, down from Q1's isolated 12.0% pace, with the deceleration concentrated entirely in a shrinking Retail segment (see The Four Holdings below). None of this moved the stock down. See Target Valuation Range for where the real disconnect in this quarter's numbers actually is.
The Prescription
Net income fell across the board this half, and the market priced the stock as if nothing had changed — the case for caution here isn't a governance problem or a hidden risk, it's a valuation gap that just got wider on weaker fundamentals, not stronger ones.
The one thing this Company controls directly, FiberStar, is decelerating in its higher-quality segment: Retail revenue actually fell 7.6% YoY this half while Corporate grew 17.6% — a mix shift toward a segment this backlog has less visibility into (see Beyond the Usual). Management's real job now is the same one flagged last quarter — fund FiberStar's buildout without another dilutive structure — plus a new one: explain why Retail is shrinking before it becomes the dominant story rather than a footnote. The Company also just took on a large new credit line after period-end (see Beyond the Usual) while free cash flow burn widened for a second straight period; that combination is worth watching closely next quarter, not because either fact alone is alarming, but because together they raise the stakes on FiberStar's capex actually paying off.
What it should stop doing, still: leaving its own capital structure to communicate the Indomaret story for it. Indomaret's own H1 2026 profit run-rate is in line with history — nothing in its own numbers explains why the market is now paying more for it than at any point in this backlog. The gap between "the associates' combined profit just fell 23%" and "the implied Indomaret multiple just rose" is the whole story this quarter, and it's a story about the stock, not about the businesses underneath it.
Key Financial Metrics
H1 2026 (six months ended June 30, 2026) vs. H1 2025, consolidated, cumulative
FX: IDR 17,935 = USD 1 (June 30, 2026) and IDR 16,230 = USD 1 (June 30, 2025), both from independently sourced spot data for the respective period-end dates.
| Metric | H1 2026 (IDR) | H1 2026 (USD) | H1 2025 (IDR) | YoY |
|---|---|---|---|---|
| Revenue (FiberStar, consolidated) | Rp871.830B | ~$48.61M | Rp801.378B | +8.79% |
| Share of profit of associates» | Rp340.565B | ~$18.99M | Rp444.379B | -23.36% |
| Operating Income» | Rp449.679B | ~$25.07M | Rp647.207B | -30.53% |
| Net Income» (total, incl. NCI) | Rp395.959B | ~$22.08M | Rp555.288B | -28.70% |
| Net income attributable to owners | Rp398.563B | ~$22.22M | Rp540.659B | -26.28% |
| EPS (basic, cumulative) | Rp28.10 | ~$0.00157 | Rp38.12 | -26.28% |
| Operating cash flow | Rp209.127B | ~$11.66M | Rp97.209B | +115.13% |
| Free Cash Flow» (op. cash flow - capex) | -Rp462.424B | ~-$25.79M | -Rp417.408B | Burn widened 10.78% |
"Adjusted EBITDA" still isn't a metric this Company reports, and it still doesn't fit a pure holding company's accounts: Operating Income above embeds Rp340.6 billion of non-cash equity-method associate profit unrelated to FiberStar's own cost structure, so an EBITDA add-back would double-count it.
| Balance sheet | Jun 30, 2026 (IDR) | Jun 30, 2026 (USD) | Dec 31, 2025 (IDR) | Change |
|---|---|---|---|---|
| Total Assets | Rp24,090.881B | ~$1.343B | Rp23,700.330B | +1.65% |
| Total Liabilities | Rp8,193.450B | ~$456.9M | Rp8,211.386B | -0.22% |
| Total Equity | Rp15,897.431B | ~$886.5M | Rp15,488.944B | +2.64% |
| Cash and cash equivalents | Rp509.825B | ~$28.43M | Rp744.590B | -31.53% |
The operating cash flow story reverses the concern flagged in the Q1 2026 post: that post noted Q1 2026 operating cash flow had fallen 49.1% YoY on a working-capital swing the filing didn't explain. Over the full half, operating cash flow actually more than doubled YoY (+115.1%), which only works arithmetically if Q2 2025 itself was unusually weak — and it was: H1 2025's cumulative operating cash flow (Rp97.2 billion) was actually lower than Q1 2025 alone (Rp107.7 billion), meaning Q2 2025 ran a small operating cash outflow. Q2 2026, by contrast, generated roughly Rp154.3 billion of operating cash on its own — a real reversal of the trend flagged last quarter, not just noise. Free cash flow still burned more than a year ago, though, since capex (Rp671.6 billion for the half, up from Rp514.6 billion) grew faster than the operating cash flow recovery could offset — consistent with FiberStar's ongoing buildout.
The Four Holdings, One by One
The Company reports four material holdings, not operating segments: three equity-method associates whose individual P&Ls never touch its own income statement beyond a single "share of profit" line, and one consolidated subsidiary (FiberStar) whose full financials do.
Indomarco Prismatama (Indomaret) — 40% stake
Indomaret's own H1 2026 net sales came to Rp64,128.8 billion, with profit attributable to owners of Rp943.5 billion — about 32.0% of its FY2025 full-year profit (Rp2,946.0 billion), a healthier and more typical first-half run-rate than Q1 alone showed (16.6%). The Company's 40% share of that profit, Rp376.8 billion, remains by far the largest single contributor to the combined associate-profit line, and Indomaret's carrying value (Rp10,025.96 billion) still accounts for roughly 73.1% of the Company's total investment-in-associates-and-joint-ventures balance (Rp13,723.8 billion) — functionally, this is still an Indomaret holding company with three smaller positions attached.
Nippon Indosari Corpindo (Sari Roti) — 25.77% stake
Sari Roti's H1 2026 net sales were Rp1,772.2 billion against just Rp4.0 billion of profit attributable to owners — effectively a wipeout of the associate's profitability for the half, against a full FY2025 profit of Rp258.5 billion. The Company's 25.77% share came to just Rp1.0 billion, barely registering against the Rp340.6 billion combined associate-profit total. Nothing in the filing breaks down cost or margin at this level of detail, so the specific driver isn't verifiable from what's disclosed — but this is a sharper deterioration than ordinary first-half seasonality alone would explain, given FY2023-2025 first halves haven't shown this magnitude of profit erosion (see Beyond the Usual).
Fast Food Indonesia (KFC) — 37.51% stake
Fast Food Indonesia swung from a Rp13.3 billion Q1 2026 profit to a cumulative Rp110.0 billion loss attributable to owners for H1 2026 — meaning Q2 2026 alone lost roughly Rp123 billion, more than reversing the recovery the Q1 2026 post flagged as a positive signal. Net sales for the half were Rp2,789.9 billion, a pace that would land below FY2025's full-year Rp4,881.5 billion on an annualized basis if it held, though one bad quarter isn't enough to call that a trend on its own. This is the sharpest reversal of any holding this quarter, and it undercuts last quarter's own read on this associate (see Beyond the Usual).
FiberStar — 71.97% consolidated (via MAP)
FiberStar is the only holding whose numbers show up in full on the Company's own income statement. Total revenue grew 8.8% YoY to Rp871.8 billion for the half, decelerating from Q1's isolated 12.0% pace — and this quarter's filing, unlike Q1's, actually discloses the segment breakdown: Corporate revenue grew 17.6% YoY to Rp535.8 billion, but Retail revenue fell 7.6% YoY to Rp281.7 billion, with "Others" up 31.7% to Rp54.3 billion. All of the quarter's growth deceleration traces to a shrinking Retail book (see Beyond the Usual). Customer concentration continued de-concentrating: PT Cyberindo Aditama represented 45.4% of total revenue for the half, down from 50.3% a year ago.
Beyond the Usual
Fast Food Indonesia's Q1 recovery reversed into a larger loss
The Q1 2026 post flagged Fast Food Indonesia's swing to a small quarterly profit as "the clearest sign yet of a real same-store recovery." That didn't hold: cumulative H1 2026 profit attributable to owners came in at negative Rp110.0 billion, meaning the associate lost roughly Rp123 billion in Q2 alone — a materially worse single quarter than any quarter disclosed in the FY2025 backlog. The filing doesn't break down what drove the reversal at the segment level (no cost or same-store detail is disclosed for an equity-method associate), so it isn't possible to say from what's filed whether this is a one-off or a resumption of the multi-year loss pattern this backlog has tracked since 2022. One quarter of recovery followed immediately by a larger reversal is itself the finding worth flagging — it argues for treating any single quarter's associate results as noisy rather than a confirmed trend, a caution that applies to this post's own read on Indomaret and Sari Roti too.
Sari Roti's profit came in near zero for the half
Sari Roti's H1 2026 profit attributable to owners was Rp4.0 billion, against Rp1,772.2 billion of net sales — a margin near enough to zero that it stands out even against a seasonally soft first half. FY2023-2025 full-year profits for this associate ran Rp150-260 billion, so a near-wipeout half is a genuine outlier rather than a continuation of an already-known seasonal pattern, and nothing in the filing's summarized associate disclosure explains the specific driver (no cost, input-price, or promotional detail is disclosed at the equity-method level). Given the Company's 25.77% stake is a small fraction of the total book, this doesn't move the overall valuation math much on its own — but it's the second of three associates to underperform sharply this half, alongside Fast Food Indonesia above.
FiberStar's Retail segment is shrinking while Corporate grows
For the first time since this backlog started covering DNET's interim filings, the H1 2026 report actually discloses FiberStar's revenue split by customer type: Corporate revenue grew 17.6% YoY to Rp535.8 billion, while Retail revenue fell 7.6% YoY to Rp281.7 billion. The Q1 2026 post noted this breakdown wasn't available in interim filings, unlike the annual reports — this half's filing closes that specific disclosure gap, and what it reveals is that all of this quarter's growth deceleration is concentrated in the segment a reader would intuitively expect to be more resilient (subscription-style retail broadband) rather than the more project-driven Corporate book.
A satellite ISP's balance with FiberStar keeps growing
PT Starlink Services Indonesia's trade receivable balance grew to Rp12.3 billion as of June 30, 2026, up 70.9% from Rp7.2 billion at December 31, 2025 — continuing the relationship first disclosed in the Q1 2026 post. Starlink remains a top-eight counterparty by receivable balance, and the growing balance suggests the wholesale relationship between the two competing broadband providers is deepening rather than staying flat.
The filing now discloses live market prices for its two listed associates
The investment-in-associates footnote states the market price per share of Fast Food Indonesia and Sari Roti as of June 30, 2026 — Rp202 and Rp610 respectively — a disclosure this backlog's prior posts didn't have available at this level of specificity. This post still uses book carrying values for the sum-of-the-parts valuation below (consistent with the Q1 2026 post's methodology, and because the total share counts for both associates aren't disclosed in this filing, so a precise market-value conversion isn't independently verifiable from what's downloaded) — but the disclosed prices are a useful sanity check: both stakes are a small fraction of total book value regardless of which basis is used, so the choice doesn't move the Indomaret-implied multiple materially either way.
A large new credit facility was signed three weeks after period-end
On July 23, 2026 — after the June 30, 2026 period this filing covers — the Company signed a loan agreement with PT Bank SMBC Indonesia Tbk for a Transaction Loan with a maximum credit limit of Rp2,000,000 million (floating rate, Cost of Fund plus 0.75% margin, maturing 12 months from signing). The agreement requires the Company to maintain an Interest Service Coverage Ratio above 100% and a Leverage Ratio at or below 300%. This is a large facility relative to the Company's existing Rp500 billion of privately placed bonds (disclosed in the Q1 2026 post) and comes as free cash flow burn widened for a second consecutive period (see Key Financial Metrics) — worth watching for what the facility is actually drawn down to fund, since the filing discloses only the facility's terms, not its intended use.
Contract liabilities for pending installations sit at Rp55.6 billion
FiberStar's revenue-recognition footnote discloses Rp55.6 billion of contract liabilities as of June 30, 2026 (Rp59.2 billion at the prior comparative point) — advances received for installation services not yet completed. This is a small but genuinely new piece of color on how FiberStar's revenue actually gets recognized: payment for installation is generally collected only after the customer accepts the completed work, but some contracts require a short-term advance upfront, meaning a slice of cash collections sits as a liability rather than revenue until the installation is actually finished.
Target Valuation Range
Bottom line: the market is paying roughly Rp139.0 trillion for a company whose own filed net asset value is Rp15.9 trillion — an 8.7x price-to-book» that's gone up, not down, even as the associates' combined profit fell 23% this half. Backing that out from the Company's own numbers implies the market is now pricing 100% of Indomaret at roughly Rp332.8 trillion — about 113.0x Indomaret's own FY2025 profit, the highest implied multiple in this backlog's history.
A standard three-scenario discounted cash flow still doesn't fit this Company, for the same reason the FY2019-2021 and Q1 2026 posts didn't attempt one: DNET's fair value depends almost entirely on Indomaret, which isn't separately listed and discloses only a summarized balance sheet and P&L as an equity-method associate. What follows is the same sum-of-the-parts and reverse-valuation approach as the Q1 2026 post, updated for this half's own numbers.
| Market cap → enterprise value | Jun 30, 2026 |
|---|---|
| Share price (period-end) | Rp9,800 |
| Shares outstanding | 14,184,000,000 |
| Market capitalization | Rp139,003.2B (~$7.751B) |
| Total liabilities | Rp8,193.5B |
| Less: cash and equivalents | Rp509.8B |
| Enterprise value | Rp146,686.8B (~$8.181B) |
| Book-value sum-of-the-parts | Jun 30, 2026 |
|---|---|
| Investment in Indomarco Prismatama (Indomaret), carrying value | Rp10,026.0B |
| Investment in Nippon Indosari (Sari Roti), carrying value | Rp2,169.7B |
| Investment in Fast Food Indonesia (KFC), carrying value | Rp1,497.4B |
| Investment in joint ventures, carrying value | Rp30.7B |
| Non-associate net assets (FiberStar + cash + other, net of all liabilities) | Rp2,173.6B |
| Total book equity (= filed Total Equity) | Rp15,897.4B |
| Market capitalization | Rp139,003.2B |
| Implied price-to-book» | ~8.74x |
That 8.74x P/B — up from Q1 2026's 8.30x — stands out in this quarter's valuation, and it's moving in the opposite direction from the fundamentals: associate profit fell, Fast Food Indonesia and Sari Roti both deteriorated sharply, and the market still paid a higher multiple of book value than three months ago. Backing out the implied value of Indomaret the same way the Q1 2026 post did — market cap, less the book value of everything except Indomaret:
| Reverse valuation: what the market is paying for Indomaret | Value |
|---|---|
| Market capitalization | Rp139,003.2B |
| Less: Sari Roti, Fast Food Indonesia, JVs, non-associate net assets (book) | Rp5,871.5B |
| Implied value of the Company's 40% Indomaret stake | Rp133,131.7B |
| Implied value of 100% of Indomaret | Rp332,829.3B |
| Indomaret FY2025 profit (attributable to owners) | Rp2,946.0B |
| Implied P/E on Indomaret's FY2025 profit | ~113.0x |
This uses Indomaret's FY2025 full-year profit as the denominator, the same basis the Q1 2026 post used, rather than a trailing-twelve-month figure — Indomaret's own H1 2025 profit isn't disclosed in this filing (only the current-half and prior-FY-end comparatives are shown), so a TTM figure isn't independently verifiable from what's downloaded. On this consistent basis, the implied multiple rose from ~105.7x at the end of Q1 2026 to ~113.0x now, continuing the upward move the Q1 2026 post first flagged (~53.5x at end of FY2021). The share price itself moved only modestly over the quarter (Rp9,200 to Rp9,800, +6.5%), so most of this quarter's multiple expansion is arithmetic: Indomaret's own FY2025 profit denominator hasn't changed since Q1's post, and the small further re-rating comes from the price move alone plus a slightly smaller non-Indomaret book value to net out.
| Scenario | Key assumption | Implied share price |
|---|---|---|
| Bear | Implied Indomaret multiple reverts to FY2021's ~53.5x on FY2025 profit | ~Rp4,640 |
| Base | Implied Indomaret multiple holds near the current ~113.0x | ~Rp9,800 (current) |
| Bull | Implied Indomaret multiple expands further to ~150x | ~Rp13,009 |
| Current (period-end close) | — | Rp9,800 |
As with the Q1 2026 post, these aren't a discounted cash flow projection — they're a sensitivity read on the one number this valuation actually turns on: what multiple the market keeps paying for a business it can't directly buy. This half's own fundamentals (associate profit down 23%, two of three associates sharply weaker) offer no support for the multiple expanding further from here, which makes the bear case look more grounded than the bull case on the evidence available in this filing — though nothing in the filing itself forces a reversion either. A reader with a strong independent view on Indomaret's true worth still has more information to work with than this backlog does on its own; DNET's own price action this half simply isn't explained by DNET's own filed numbers.
PT Indoritel Makmur Internasional Tbk's consolidated financial statements for the period ended June 30, 2026 (with June 30, 2025 comparatives), authorized for issuance by the Company's Board of Directors on July 29, 2026.